Huawei’s CEO Ren Zhengfei has pledged to stick to a globalisation strategy despite external pressure. He has called on the new US administration to come up with more open policies that are in the interests of US companies and the US economy as a whole.
These are the first public remarks the Huawei founder has made since the change of the US administration in January.
In May 2019, the US commerce department added, Huawei into the Entity List, which prohibits the company from purchasing US technologies as well as software services. In 2020, the Trump administration further restricted Huawei from purchasing semiconductor products and cancelled licenses for existing suppliers.
Last month, Joe Biden took charge of the White House and Ren expects that the new U.S. president could bring an improvement in ties between the two parties as well as businesses.
Ren was speaking during a press briefing on Tuesday in Taiyuan, the capital city of China’s northern Shanxi province, after launching the Intelligent Mining Innovation Lab.
“Trade benefits both sides. Allowing US companies to supply goods to Chinese customers is conducive to their own financial performance. If Huawei’s production capacity expands, US companies could us sell more. It’s a win-win situation. I believe the new administration will weigh these interests as they consider their policies,” said Ren.
Ren stated that Huawei creates value for the whole ecosystem and the wider economy. He cited the example of Huawei built 5G networks in many cities in Europe, Asia and the Middle East, and its networks in Europe top global network performance tests, benefiting all the users on those networks.
“The fact high-end users can use the iPhone 12 to its fullest effect on our 5G networks in Europe is a testament to the quality of our networks,” said Ren.
“As humanity keeps making progress, no company can develop a globalised industry alone. It requires concerted efforts around the world.”
The United States government has been campaigning against Huawei in the past two years alleging Huawei’s equipment could be used to spy on Americans, without presenting any evidence. Huawei has repeatedly denied the claims.
Ren said he is now even more confident about Huawei’s survival than he was.
“We have found new and more ways to overcome our challenges caused by US sanctions. Our sales revenue and profits in 2020 were higher than the previous years,” Ren told journalists.
Enabling digital transformation for industries
Ren said new strategies include research and development and growing deeper roots in vertical industries around the world to enable the digital transformation with its Huawei’s core ICT capabilities.
Ren said the Intelligent Mining Innovation Lab would result in better services for mines with 5G.
“By supporting the mining industry, we can grow our business and support more efficient and safer production in mines. We can also enable coal mine workers to ‘wear suits and ties’ at work” Ren said.
“In the 5G era, connecting businesses is the main goal. There are many industries that we are not too familiar with, like airports, ports, coal mining, iron and steel production, automotive manufacturing, and aircraft manufacturing. That’s why we built joint labs to learn more about the needs of these industries.”
Huawei’s business results for the first nine months of the year 2020 showed that revenue totalled 671.3 billion yuan ($98.57 billion), up 9.9% from that of the same period in 2019.
“We’ll continue serving our customers well by creating more value for them. We want them to have lasting faith in us, and we hope that they won’t sway because of political pressure,” concluded Ren.