Huawei Guo Ping dialogue record: looking for chip ban solution to keep staff business stable


Sina science and technology news on the afternoon of September 23, at today’s Huawei full connection conference, Guo Ping, chairman of Huawei’s rotating chairman, Zhang Ping’an, President of cloud services for Huawei’s consumer business, and other senior executives received media interviews.
As for the latest ban in the United States, Guo Ping said Huawei’s chip inventory is sufficient for 2B business, but mobile chip is still looking for solutions. If Qualcomm successfully applies for a license, it is willing to use the Qualcomm chip on Huawei mobile phones. In addition, Huawei has a strong chip design capability, and is willing to help trusted supply chains enhance their chip manufacturing, equipment and material capabilities.
Will the chip ban affect the construction of Huawei’s HMS ecosystem? Zhang Ping An responded that this will not slow down Huawei’s pace, but will strengthen Huawei’s determination to build HMS ecology. In terms of building HMS ecology, Huawei will remain open. Whether Huawei can cooperate with Xiaomi, OV and other mobile phone manufacturers is still under discussion.
Although Huawei is currently facing challenges, Guo Ping stressed that Huawei’s human resources, financial and business development is basically stable, and the company’s human resources policy will be stable for some time to come, and it will continue to attract the best talents. “The key to solving Huawei’s problems is excellent talents. What does it take to turn sand into chips? Relying on excellent talents, Huawei will continue to maintain the stability of its business and absorb excellent talents in the future. As for the specific individual market, it will adjust according to the demand. ” He said. (Zhang Jun)
The following is an excerpt of the media conversation:
1. Question 1: Question 1: we know that before the implementation of the latest ban in the United States, Huawei has begun to stock up on chips. How long can Huawei’s chips support? Especially for mobile phones and base stations. Question 2: what further plans does Huawei have to deal with after these reserve chips are used up?
Guo Ping: Thank you for your question. The United States has increased sanctions and revised the law for the third time. It has indeed brought great difficulties to our production and operation. However, the reserves of each chip were not put into storage until September 15, so the specific data are still in the process of evaluation.
As for the “surplus” of “landlords”, we are still quite adequate for 2B business including base stations. Huawei hopes to combine connectivity, computing, artificial intelligence and industrial applications to create value for customers. There are huge opportunities in this respect. As for mobile phone chips, Huawei consumes hundreds of millions of mobile phone chips every year, so we have reserves for mobile phones We also know that many American companies are actively applying to the US government.
As mentioned this morning, the government and enterprises are promoting “digitization” and “intelligence”, and the opportunities of ICT industry are far greater than competition. I also noticed that the Japanese media mentioned that the US ban on Huawei also caused Japanese enterprises to lose as much as one trillion yen. The American Semiconductor Association and the international semiconductor association also expressed concern about the US government’s ban. This not only restricted semiconductor enterprises outside the United States, but also greatly restricted the chip sales of American enterprises. We also hope that the U.S. government can reconsider their policies. If the U.S. government allows us, we are still willing to buy products from American companies. We will continue to adhere to the “globalization” and “diversification” procurement strategy. Mutual trust and mutual benefit, division and cooperation mode of ICT industry are the most conducive to global industrial development.
Let’s tell a story of our own. In the 1990s, 100% of China’s switches were non Chinese products. The Paris Coordinating Committee imposed export restrictions on technologies such as SS7, which we could not obtain. We started with the principle and finally made Huawei digital switch. I believe that global open cooperation and mutual exchange of needed goods are the most beneficial to economic development.
2. Question: Recently, the U.S. government has repeatedly claimed that Huawei, wechat and other Chinese enterprise applications pose some threats to the national security of the United States, and has taken relevant measures. The United States has also implemented the “clean 5g plan”. What impact does this plan have on Huawei 5g’s global sales? Huawei’s recent cuts in R & D funds and layoffs in Australia have attracted more attention. Is Huawei considering withdrawing from Australia? What is the future?
Wang Tao: “clean 5g plan” depends on how you define it. We know that in the digital era, we need an objective and rational rule to promote our entire economic prosperity, and to enhance security, reliability and mutual trust. As an enterprise, we hope that governments of various countries can rely on the certainty of rules and systems to point out the direction of enterprise development. As for 5g, how to define 5g, whether it is clean, and how to define 5g safety need a rational standard. It is not a government or some political figures who can define what is clean 5g. At present, many countries and organizations have launched laws, regulations and initiatives related to cyberspace governance data protection and governance. In this process, we can see the “German telecommunications law security directory”, the EU gdpr, GSMA, 3GPP led plan, etc., which is based on a rational and objective way to formulate transparent rules.
We welcome the development of unified, implementation based and rule-based network security or data protection rules to jointly address a new challenge facing the entire society in this digital world. This is conducive to each country to choose its own technology suppliers and promote its social competitiveness under this clear legal and regulatory framework, instead of defining “clean5g” based on a specific purpose.
The impact of “clean5g” we believe that our countries, our customers and our operators will make their clear choices based on the rules of factual rationality. For our 5g business, we don’t see a clear impact. Moreover, as a global leading 5g supplier, we focus more on how to use our leading technologies and solutions to create greater value for our customers and their customers. This is what Mr. Guo mentioned this morning that five different technologies with 5g as the core should be organically integrated, and “five machine” integration should be used to jointly enable Digitalization of the industry is our key point at present.

You mentioned the second question about Australia. Australia is a small market, not a market we focus on. Huawei has always preferred high-quality resources to high-quality customers. We use limited resources to serve our customers who really need us to make them successful. As for a specific market, we will make appropriate adjustments according to the market situation.
3. Question: while Huawei is waiting for the US chip supplier to apply for a license, what does Huawei do to cope with the current situation? Will the development of Huawei Hongmeng operating system and Huawei mobile service slow down in the future? With the implementation of the US ban, the growth rate of Huawei’s mobile phone shipment will decline. In addition, will Huawei consider cooperating with other Chinese mobile phone manufacturers to market? Such as cooperation with Xiaomi, oppo and vivo?
Zhang Ping’an: what we need to do now is how to continue to do well in other aspects of innovation under the condition of restrictions. These innovations include various forms of intelligent terminals in the future. Our R & D team has to think about it. Although we will be restricted in the chip field, this is one of them.
Second, we see that we still have 700 million users, and we can still provide a lot of innovative business and services for 700 million users. We hope that we can continue to serve users well through our HMS. We also hope that through our operating system, we can continue to develop and make different innovations in the next generation of operating systems.
Just asked if we will slow down our pace, this will strengthen our determination to build HMS ecology. We believe that ecology has always been very open, because all the ecological digital services and ecological platform systems we have done are ultimately serving global users. I think we will also work with all the intelligent hardware manufacturers to see how to create a better ecological platform and not let developers switch back and forth on different platforms. We will also actively discuss with them whether HMS can cooperate with them, which is in the process of discussion.
4. Question: this year, Huawei’s business has also been affected because of the great impact of the new crown epidemic on the global economy. China has put forward the “domestic and foreign dual circulation” strategy to boost the economy. What strategy is Huawei going to take next? Will domestic and foreign business be adjusted? Which foreign markets are more important?
Guo Ping: this year’s epidemic has had a very significant impact on the global economy, and Huawei is no exception. The theme of our conference is “five machine cooperation”. Technology is used to create value. In the face of large-scale epidemic, it should be said that ICT related technology has played a positive role in dealing with the epidemic situation and the recovery of production after the epidemic.
For example, maintaining a smooth connection during the epidemic is the basis of disaster relief. In many major regions in China, China and Huawei are responsible for supporting the emergency expansion of many regions in this process, so that people can get better connection during the epidemic.
At the same time, its online office, online health care and online education all played a positive role in the process of the epidemic. In this process, Huawei and Huawei partners also played a positive role in a variety of technologies. In the process of resuming production after the epidemic, ICT technology has also changed people’s living habits in many fields. For example, even after the epidemic in China has basically passed, online office work has become normal through videos, 5g videos and online education. During the epidemic period, we communicated with overseas customers, and I made statistics. The frequency of communication did not drop In fact, connectivity is the foundation of the whole digital economy. We believe that the epidemic will further consolidate the demand for connectivity and computing. Of course, these technologies need to be deeply integrated with the scenes of various industries. This is also an important challenge and an important opportunity for Huawei and its partners all over the world to develop the digital economy.
5. Question: just now, a reporter asked Huawei about the possibility of layoffs in specific markets. I would like to ask about Huawei’s plans in the world. Based on the current situation, does Huawei adopt some crisis response methods to ensure its survival and cope with current considerations? Are you considering layoffs or adjustments?
Guo Ping: at present, Huawei’s human, financial and business development is basically stable. In the future, our company’s human resources policy will be stable. We will continue to absorb the best talents. The key to solving Huawei’s problems is “excellent talents”. What does it take to turn sand into chips? Relying on excellent talents, Huawei will continue to maintain the stability of its business and absorb excellent talents in the future. As for the specific individual market, it will adjust according to the demand.
6. Question: we saw that the strategy of “no investment” was mentioned in the full connection conference before. In the past year, under the pressure of the United States, whether Huawei invested with Hubble or established a fund with Shenzhen, would Huawei consider divestiture of its business through investment or spin off, so as to continue to protect the existence of these teams.
Guo Ping: Huawei’s core business is focusing on “connection” and “computing”. Due to various pressures, we have established our Hubble investment, which is a strategic investment in the supply chain. After all, Huawei is a company, we are not an industrial chain, so we will help the industrial chain mature and stable through investment and Huawei’s technology.
7. Question: we note that Qualcomm is also applying to the U.S. government for a license to provide chips to China. Will Huawei consider using the chips in Huawei’s flagship smartphones? Does Huawei plan to invest in chip manufacturing plants or wafer factories?
Guo Ping: Qualcomm has always been an important partner of Huawei. In the past decade or so, we have been purchasing chips from Huawei. I also noticed that Qualcomm said that they were applying to the U.S. government for an export license, and if they did, we would be happy to use Qualcomm chips to make mobile phones. Huawei has a strong chip design capability, and we are willing to help reliable supply chains enhance their chip manufacturing, equipment and material capabilities. Helping them is also helping us.
8. Question: how many 5g networks does Huawei build in the world? How many, especially in Latin America?

Wang Tao: in recent years, we often ask how many networks Huawei has deployed. In the past year, we have not paid much attention to this number, because if we only deploy 10, 50 and 100 stations, it is not called deploying 5g network. Now we are more concerned about how to achieve “5g Park coverage”. Only by achieving coverage can 5g business be truly realized. Whether it is for consumers or in 2B domain, we can use the network. At present, many regions in the world have already reached this stage to realize 5g continuous coverage. This morning, the mayor of Shenzhen announced that 46000 5g base stations have been deployed in Shenzhen. However, the number of base stations deployed in many regions of the world is still relatively small. As for our major operators in Latin America, their 5g deployment is still in the early stage, with a small number of 5g base stations. We basically do not count them in the real 5g commercial network.
Guo Ping added: 5g is a kind of technology. Technology is used to create value. Therefore, the theme of this conference is “five machines” to cooperate to create industry value. We warmly hope that the combination of 5g and other cloud, computing, artificial intelligence and other technologies, as well as the combination of various scenario applications, can create value in 2B or 2C scenarios, and create the value that Huawei 5g can bring obvious benefits to customers. Such successful practice will drive the next step of 5g implementation and construction boom. We are also eager to see that Huawei users can obtain more obvious and better benefits than other competitors, to reflect Huawei’s leading position in 5g, to reflect the efforts made by Huawei and other technologies, and to promote the better commercial success of our high-quality customers.
9. Question: in response to this year’s sanctions against Huawei, is it possible to adjust its business, and is there any plan to set the priority of IOT and cloud services higher than that of Huawei’s mobile phone business?
Guo Ping: “915” has just passed a few days. We are still evaluating the specific impact. Huawei’s business human resource policy will remain stable. We will continue to recruit excellent talents to solve Huawei’s problems. As for your specific business plan, we have no detailed plan to share with you. thank you.