Survive! Huaweis strong response to the US blockade: there is no way to go but to win

 Survive! Huaweis strong response to the US blockade: there is no way to go but to win

After the US banned and upgraded Huawei, Huaweis social platform in China silently wrote this sentence.

On the evening of May 15, the website of the U.S. Department of Commerce issued an export ban, requiring foreign enterprises using U.S. chip manufacturing equipment to obtain an export license before supplying goods. The blocking and upgrading of Huawei once again challenged the bottom line of the international supply chain and industrial chain.

Huawei wrote in its voice community, no scars, no rough skin, no thick flesh, heroes have suffered a lot since ancient times. The article only has two sentences: looking back, bumpy, looking forward, never give up. The picture is an IL2 attack aircraft, hit like a sieve and riddled with bullet holes in World War II, still insists on flying and finally returns safely.

Two days later, Huawei held the 2020 global analyst conference. All eyes are focused on the conference, because Huaweis top management will respond to changes in the rules and concerns of the outside world.

At the conference, Guo Ping, chairman in office of Huawei, twice expressed his incomprehension to the move of the United States: Huawei has always been a positive contributor in the field of ICT. Why does the U.S. government keep attacking us? I think theres no reason at all.

In the past year when Huawei was sanctioned, from scrambling to explain to customers and employees to mending holes, fortunately, Huawei survived and maintained business continuity.

But the impact is still there. Revenue in 2019 is still $12 billion lower than we expected. Guo Ping revealed.

It is understood that in order to ensure business continuity, Huawei has redeveloped 60 million lines of code, redesigned more than 1800 boards and checked more than 16000 codes.

In the face of tougher sanctions, Guo said Huawei was still in the process of evaluation and had no clear judgment on the continuity of subsequent business. But we can be sure that after one years hard work last year, we are confident that we can find a solution as soon as possible.

In 2020, Guo Ping said Huaweis theme word is survival.

The following are the excerpts from the 2020 Huawei analyst conference, including Guo Ping, chairman in office of Huawei, Wang Tao, managing director of Huawei, and Wang Yanmin, President of global ecological development department of Huawei consumer BG:

1. How does Huawei develop in the first anniversary of 516? Facing future challenges?

Guo Ping, chairman in office of Huawei: I still remember 516 a year ago when we entered the entity list, we were in a hurry. We spent a long time communicating, clarifying and understanding with Huawei partners and employees.

Huawei has increased its R & D investment by 30%, many of which is to mend holes. For example, we have redeveloped 60 million lines of code, redesigned more than 1800 boards, and checked more than 16000 codes, all of which have enabled Huawei to place goods on the entity list. Ensure business continuity.

Fortunately, Huawei has gained the understanding and opinion of most of its partners and employees. So in the face of long-term uncertainty sanctions, we can find solutions.

2. At present, the trend of science and technology may have two hemispheres. One is recognized by the United States; the other is not dependent on American technology.

Guo Ping, chairman in office of Huawei: it is our consensus that we pursue a unified standard. I think you all have this experience. To go to different continents, you need to change different mobile phones. From 1g, 2G, 3G, 4G, its not easy to achieve 5g unification. I think this trend is there, and international organizations have played a positive role in it.

In the 2G era, the multi system American operators make the American telecom equipment manufacturers no longer have the leading position in the competition, and finally decline, no longer have the American Huawei competitors. America should have learned this lesson.

Past experience has shown that manufacturers, operators and end consumers can all benefit from uniform standards.

No matter what kind of setbacks this unified standard will encounter in the future for various reasons. I believe that everyone agrees with this trend. The corresponding organizations will also actively promote a unified standard. Huawei will also actively participate in this unified standard. We hope that the basic principles of fairness and non discrimination will be implemented in a way of continuous openness and cooperation.

3. Huawei plans to develop in Europe, especially in the construction of ecosystem. Including ICT and HMS ecology.

Wang Tao, managing director of Huawei: Huawei has been cultivating in the European market for a long time. Help European operators and steam customers to build an open, credible and leading infrastructure.

At the same time, we are committed to the development of digital economy together with our partners. We continue to innovate with our partners in AI, 5g, optical communication and other brother fields. Help European telecom operators and government enterprise customers build the worlds leading communication infrastructure and computing infrastructure.

Wang Yanmin, President of global ecological development department of Huawei consumer BG: 516 is not allowed to use Google ecology. In this case, Huawei is forced to develop HMS ecology. Huaweis HMS ecosystem has increased investment in the past year, especially in developer services.

So far, Huawei has more than 1.4 million HMS developers, and cooperates with local European partners.

The new ecosystem should first meet the needs of local consumers and give priority to local application. This is an important strategy of HMS. We will also continue to provide our developer service platform, as well as our local innovation laboratory, so that more local developers and partners can join in the ecosystem and provide better and better experience and ecological product services.

4. The U.S. crackdown on Huawei will not be over. How do you think of the crackdown on Huawei in the context of the new crown epidemic?

Guo Ping, chairman in office of Huawei: we have experienced the process of epidemic in China. We are also working with customers around the world to deal with the new crown.

From this outbreak, we found that ICT infrastructure can play a very important role. Huawei and its Chinese partners summed up nine protest solutions during the protest.

Its not easy to stay here for more than 80 days. Our program of cooperation with the government and relevant partners in China has made anti epidemic and consumers play an active role in life and work. At the same time, we also actively cooperate in Africa and Asia.

For example, after the closure of Chinas city, content providers were allowed to provide free video services for three months, and lockdown in the UK collapsed the next day. Netflix in the European Union changed from high-definition standard to standard definition standard, but why can China support it. Because Chinas infrastructure is perfect. This will play a very positive role in telemedicine, distance education and telecommuting.

Im also reading speeches and speeches by American executives. I have concluded that the United States believes that technological leadership is the basis of American hegemony, and that the technological leadership of any other country and other companies may damage American hegemony.

Unfortunately, Huawei has taken the lead in the field of ICT, the fastest-growing industry. I also note that the president of the United States has delivered many speeches to strengthen the construction of EU infrastructure and digital sovereignty.

5. Huaweis cloud business structure has been adjusted. How high is Huaweis sanctions against Huawei cloud? What are the challenges to Huawei cloud?

Wang Tao, managing director of Huawei: we all know the golden 10 years for digital transformation and intelligent transformation in the next 10 years. In order to enable Huaweis digital transformation, Huawei cloud plays an important role. We are committed to empowering data to build the black land of the intelligent world.

As you know, Huawei is a supplier of ICT and intelligent terminals. In the process of building an enabling intelligent society, Huawei cloud, as an open and powerful computing and enabling platform, will be able to build a comprehensive solution with Huawei solutions and developers and real gas customers.

6. What is Huaweis expected revenue this year. Huaweis high-end mobile phone chips in consumer business may have problems. Is there any adjustment of mobile phone shipments?

Guo Ping, chairman in office of Huawei: after the US put Huawei on the entity list last year, it still has an impact on our business. Compared with our expectation, it is still 12 billion dollars less. Last years quarterly growth has also been declining, especially with each contract the US has won particularly difficult compared to the past. So thank you so many customers for having so much trust in Huawei.

As for the new product rules introduced by the United States two days ago, many things are not clear. There is no clear judgment on the specific development of the follow-up business.

Huawei is an ICT equipment and terminal company. We can (guarantee) product design and integrated circuit design, but many other operating capabilities are not available. We are trying to find out how to survive.

Survival is Huaweis current theme.

Attached is Huaweis media statement on US Department of Commerces modification of Huaweis direct product rules:

Huawei strongly opposes the US Department of Commerces modification of direct product rules only for Huawei. Since it was incorporated into the entity list by the U.S. government on May 16, 2019, Huawei has always been committed to complying with applicable laws and regulations, fulfilling its contractual obligations with customers and suppliers, struggling to survive and strive to move forward under the circumstances that a large number of industrial technology elements are not sustainable.

However, in order to further curb Huaweis development, the U.S. government ignored the concerns of many industry associations and enterprises, expanded and revised the direct product rules without the bottom line, and the revised rules were outrageous and had industrial destructive power. Under this rule, the expansion, maintenance and continuous operation of the hundreds of billion dollar network built by Huawei products in more than 170 countries around the world will be impacted, and the information and communication of more than 3 billion people using Huawei products and services will also be affected. In order to suppress the advanced enterprises in other countries, the U.S. government ignores the rights and interests of Huaweis global customers and consumers, which contradicts the rhetoric of protecting network security that has been advocated all along.

This revision of the rules will not only affect Huawei, but also bring serious impact to related industries around the world. In the long run, the trust foundation of global cooperation in chip and other industries will be destroyed, and the conflicts and losses in the industry will be further intensified. If the United States uses its own technological advantages to suppress other enterprises, it will weaken their confidence in the use of American technological elements, and ultimately hurt the interests of the United States itself.

Huawei is in the process of conducting a comprehensive assessment of this incident, and it is expected that our business will inevitably be affected. We will try our best to find solutions, and we hope that customers and suppliers will work with Huawei to eliminate the adverse effects of this discriminatory rule.

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