To face the american government sanctions initiated in the Trump administration, the president of Chinese Huawei, Ren Zhengfei, plans to invest in the production of software to diversify your company's products. At least that is what reveals an internal document of the company released this Tuesday (25).
According to the memo, the president and founder of Huawei tells his employees that the initiative makes sense "because in the world of software, the United States government would have very little control over our future development and we would have more autonomy".
However, no further details are given about what types of software the Chinese company plans to develop or even which companies would be considered rivals to Huawei.
Zhengfei's instructions represent the most recent episode of the company's strategic shift to “circumvent” pressure from Washington, which considers Huawei to be a major threat to the national security of the United States.
In April, the Chinese announced plans to act alongside Chinese car manufacturers to produce smart vehicles.
Huawei also promised to accelerate the development of its own operating system (called HarmonyOS) for smartphones, given that the company's access to the Android platform was restricted by American measures. Even on Tuesday, Zhengfei's company revealed that HarmonyOS will be launched globally on June 2, along with the launch of other new products.
- Huawei loses suppliers in the United States
- Huawei's revenue falls again in the face of U.S. restrictions
- Sanctions could make Huawei reduce smartphone production by up to 60%
“War” against the USA
American pressure began in mid-2018, when the then American president <br><br>Donald Trump claimed that Huawei equipment could be used by the Communist Party of China for acts of espionage and sabotage.
This provoked a real campaign to restrict the Chinese: the company was banned from the United States market and reduced the supply of components after Washington pressed allied countries to interrupt and boycott the use of Huawei equipment in their telecommunications networks.
The Chinese company countered the accusations and said that no concrete evidence to support the charges was ever presented. The justification, however, was not enough to avoid the decrease in the sale of smartphones of the company, which registered 21% drop last year.
So far, current US President Joe Biden has given no indication that American pressures against Huawei are likely to ease. Therefore, the diversification strategy of the Chinese telecommunications company becomes even more important in order to regain its space in the market.
Zhengfei pointed out that the company's software production will prioritize the Chinese market, but without ignoring business in Europe, Asia and Africa.
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