Huawei: Rises After US Ban

a massive 3.5 square mile estate housing research facilities for 23,000 employees this is Huawei's newest campus and don't want south of china inspired by european landmarks drawing attention and talent from around the world call the oxhorn campus if sheer size symbolizes always growing influence as a largest telecom equipment manufacturer the second biggest smartphone maker in the world an icon that represents china's technological might but Huawei is facing its biggest crisis in three decades and broiled in the us-china trade war facing claims from the US government that it poses a national security threat in May Huawei was put on a US trade blacklist banning American farms from selling components and services to the telecoms giant accusing it of providing a backdoor for Chinese intelligence services something Huawei denies caught between a battle of two super powers between the Battle of technologies China's Huawei is fighting to survive the crisis in this episode of managing Asia I meet up with one Jon Faine CEO and founder for the latest in his bath plans to tackle his biggest challenge yet it's been six months since Huawei was put on the u.s. entity list it was May 16th do you remember the day what was the first thing that went through your mind were you angry were you were you disappointed when I heard that the US had put us on the entity list I wasn't very surprised you all because we were mentally prepared when they had just started cracking down on us we estimated our sales would drop sharply but I did not believe it will endanger our survival missions oh wow now haul a cooler one or two months later during an interview I said that our estimated drop in revenue might be around 30 billion u.s. dollars that estimation was made based on our sales plan for this year not the revenue for last ish as time goes by we are fully confident that this drop won't exceed 10 billion dollars compared with our plan for this year I'll call you BAE you making now the impact on us will be much smaller than expected you actually put out a memo that said the company was facing a live or die moment as CEO what was the first thing you did to manage the crisis at Huawei so hidden a decision a chole masala first of all this incident was not a surprise to any of our senior management we are all of one mind we need to change our employees mindset as we are not in peacetime anymore we need to switch for more than 30 years our employees have been very well off which is another way to say slacking you must take this opportunity to prevent our employees from slacking off way to continue men trying to abort AK - Sudoku dear charlie session during peacetime our products were advanced in superior our usual which allowed many media for employees to move into managerial position these employees were eloquent and knew how to flatter their bosses so other employees may feel that they were promoted without being tested in the field for this reason we need to remove these mediocre managers this is the idea in my mind this idea will be made public which will sound an alarm to our employees this way some of these employees may correct their behavior choose to resign or retire this will allow the company to weed out mediocrity within 3 to 5 years we will see vitality among our employees looking at the last six months what was some of the painful lessons learnt for you and Huawei what your dad funcly' cherishing just raise your paw I can summarize the painful lesson in one sentence we must not slack off or allow me to teach and we must remain dedicated and inspire passion throughout the organisation English here the US has granted a temporary reprieve to allow a way to continue buying components from the US to what extent have you managed to resume the supply of components from the US chunky hoc carry US government didn't approve a single request for license during the first 90-day reprieve they extended the license validity by another 90 days which they added over 60 of our affiliates that they had initially overlooked to the entity list they've actually increased their sanctions on us rather than being more lenient in August you launch your own operating system called a hongman OS and you're now developing your own advanced chipset called a sent nine one zero how much progress have you made to drive Huawei to be more self-reliant do yoga good intelligence ocean chakra Trangia first of all we want to delegate the decision-making power to our experts the last thing we want is to have bureaucrats or managers lead our way in technology so we've decided with our managers should do administrative affairs and leave technology related decisions to Jonker transaction take home to the sheeple jang yesol they're hung os was originally designed for IOT whether it would be able to support the future development of Huawei the key is not the operation system itself creating an operating system is relatively simple the critical factor is establishing an ecosystem and this requires the cooperation of tens of thousands of companies this is very complicated it needs a long time to develop you go sham done challenge and of course let's talk about creating that ecosystem that you talked about the Hohmann operating system which I understand it can be used across different devices but no plans yet to use on smartphones do you think that hong hwon has the potential to replace google's android should you choose to develop it as an alternative operating system for the smartphone business your woman can adapt or a cheetah I'm sure that you know we won't replace Android operating system because we support the development in Google is a very good company we want to enhance copper with them home if hongman gets to develop its ecosystem it would be a good complement instead of a replacement role for sure truly only a curation I understand you want to keep your relationship with Google but this hongman OS have the potential to replace Android Google should you choose to develop it further as an alternative mobile operating system let's Sochi na or Mahajan kakuka portal first of all we want to strengthen our partnership with Google and Google wants that - the only problem is if the US government won't approve it whether we have the approval depends on what happens on November the 19th we hope that the US will approve our continued friendly cooperation with Android G I'm sure it's not about capability as we are definitely capable of achieving what we want you to do each other Oh a mission tortoise for now you've gone ahead anyway and you've launched your latest handset the mate 30 even though you don't have the full suite of Google Apps why do it why launched a new handset in the midst of all this uncertainty you made her sign in a high efficient polish she knew gunnin for the main 30 it has a lot of functions that would attract many customers whether people could accept our product without the pre-installed Android system I need to test they expect the number of make 30 sold to be around 20 million cents let's wait and see if people are actually willing to pay for our main 30 without your full Android system whether people can still accept us just out of curiosity did you bother to test hongman on May 30 sure let me not for now [Music] inside hallways highly secure research center things are hardly slowing down when you hear of the crisis that always going through outside with the USP how do you feel as an engineer working here yeah I think I don't worry about it the tech giant is in fact ramping up R&D engineers showed us a state-of-the-art antenna testing lab for 5g equipment and other patented research on the Left yzo technology it is a aluminum alloy and this one is the technology we developed before 5g products it's more than 30% lighter it is made of a magnesium alloy Oxford PhD holder Chung Hong Kong specializes in structural materials to make 5g equipment lighter and more durable thermal engineer 10 watt doe shall be a technology to cool down 5g base stations we have name but you know there's a compensation use the white color KP yeah it's kind of secret to be honest it's kind of secret so it's a faraway secret yeah we have patented yeah perhaps more interesting was what they couldn't show me Wow gee it's open to you so it means a fargy cooling technology it's old technology so you're - started on 6j yeah actually working on 65 G it's one solid war and 60 maybe 2000 three cells and war so we need the new technology so we working on its Huawei's 5g technology that has been at the center of the storm and I'm gonna do a speed test so you can see the speed difference between 4g + 5 g so you can see the 4G phone is 88 megabits per second and the 5g phone is 900 meters per second almost one gigabit five g's faster speed enables new technologies such as self-driving cars AI and robotics but the US has slapped x-ray blackness on the tech giant citing security risks and pressing its allies to follow suit when you hear your CEO and Founder say that this is a live or die moment for the company as an engineer does it drive you to be more innovative yes I think so yes I think I kind of feel it's my responsibility to work hard not only for myself but also make little contributions to our country it's a critical moment for Tyler's development joe said founder when john fake all these laboratories 2012 it is because the famous disaster movie 2012 meet sir engine fail ask if one waits to sound unnatural years coming who can help mm her lab aids of far away it's not arc so is going to help save the company yeah to save our company but is far away hardy enough to survive the turmoil run says he's toughening up the company from the inside out tcellucci hauler on the tongue simple fire shakeela after this crisis happened we are marching faster along the road of innovation when firing we pay more attention to scientists and young talents GM want a Koko fondling Mishima so we are much more capable to develop new products than in the past not only we make up for the loss created by the US and continue with our production also update ourselves in technological development obviously about songs these should happen at the same time composition you often refer Hari to a broken airplane what would it look like three to five years from now gingka Sha Tin Yayoi within two years our plane will be completely repaired in three years you will see a new plane there are Sheena Fiji College in Fiji the Jing Zhi it would probably have more advanced engines to fly faster I think the whole restructuring within the organization should be completed within three to five years Scott you go on Channel do a chichi show you that can call on cave we would have a higher level of efficiency by then our ability to develop products and world leading technology would be significantly enhanced and for our whole service system our projects around the world and our manufacturing system the use of AI would increase dramatically we should say the plane becomes stronger core singing that short key organ traveling you will it fly faster than any other plane in the world UK should be jingo it should be I've been talking to your engineers in dongwan and they say work hasn't really begun on 6g what sort of progress have you made on 6g development what sort of investment are you throwing in new geometric I see we started work on sixteen three to five years ago we didn't just start it teaching at college I don't know the exact amount is but we are generous in our investment but you have the confidence that while we will lead in 6g as well yo yes trade talks are ongoing between the US and China and of course while we has been used as a bargaining chip now I understand that you don't want China to make concessions for you why put the future of hallway and possibly that of your order on the line more than you should have to you know take colors America is awake perhaps the u.s. believes this will serve them better in negotiations or talks but we don't want to sacrifice national interests for ourselves national interest is about the poor and there we are already well off we cannot ask the poor people to save us so we think we should just withstand the explodes from the US and we will resort to legal means to resolve this problem hhn take a1 Chiba are you watching the impeachment process that Donald trum is facing in the US do you think this could complicate matters for huawei in the US what make when she I haven't paid attention to Trump's impeachment inquiry I think Trump is quite a good president he didn't lead the u.s. to a tougher situation what's not good about that to what extent would it have implications in hallways position in the US would it change the u.s. position on Huawei what terminate Calton Pocoyo somebody we we don't have any kind of status in the US and we don't plan we're not interested whether he's re-elected or not this has nothing to do with us do you think if he does face impeachment process in it and it does go through a democratic government under Joe Biden or Elizabeth Warren would actually open the doors for Huawei to be removed from the entity list it was a horrible warpage or their walkway you think that's who would speak up for Huawei or either no one so you think that while we will stay on the blacklist for some time yes I believe so is that your expectation yes you're not hopeful at all that it will remove from the blacklist okay sure yes there isn't much how much you want so that's a scenario you're going with that's the assumption you're operating on that you will continue to stay on the blacklist and you will continue to operate as why we would and you would continue to take steps to survive this crisis that you're in well mayor has like a vanishing back we want to remain open-minded and keep the suing economic globalization even if we're not taken out of the entity some American companies things they sell only a very small portion of us products are related to security or shell gear if you prevent oil companies from selling to foreign countries this is not beneficial to the US you should the barely lift in one leg we would still buy from these companies we GL Harminder let's talk about your daughter she's under house arrest in Canada a hearing is now ongoing about the legality of her arrest in Vancouver are you hopeful that she will be acquitted soon tradition tire jingle we need to wait for the court decision in Canada D I don't know what decision they will ring schreeten with JT have you spoken to her recently how is she holding up she was plant idea why yeah we made some phone calls we chatted and I listened to her what she thinks the books she read the TV shows she watched even going out for hot pot I only hope she can relax and be prepared for the long run nothing much else she's humble yourself is she anything like you in terms of resilience and resolve what truth LLL miss sangar need double shower I feel that none of my three children resembles me none of them liked me or talk to me much in the past they didn't talk to me at all now it's slightly better the reason is when they were little I devoted my time I never took care of your place so we didn't have much emotion is why they are independent and strong when you're more independent you rely less on your parents so my children don't talk to me it's not just minglang chirp nd tower but Sir what some but some more I'm too you collect but looking at what she's going through right now has it brought the two of you closer as a result today Nantucket Eagle colony signature Watchi Shawn this might have helped us bring us closer if she comes back one day we can sit down regularly to have meals which in turn kilowatts and so far was Shanghai color take that no too much a D&E she can feel she's needed and feel the warmth of the family it has helped yes she okay team [Music] what so so Cheng a soilless even consular woman's are so Genki gosh we don't intend to license our technology to all Western companies will license it to only one Western Kalani you give it an exclusive license so that there will be a large market for them we think this company should be a US company Jordan you guys should make Aakansha ue o europe already has its own 5g technology but so does south career in Japan you just need to make some improvements and adjustments to its developmental keep cheat object maybe since the u.s. doesn't yet have any 5g technology we should exclusively licensed it to a US company but essentially this opens up the opportunity for another Western company to be a giant competitor to you are you willing to accept the fact that you might lose your 5g leadership when you hide a hardship first we will get a lot of money from the license that would be like adding firewood to fuel our innovation on new technologies will mean that we will have a better chance of maintaining our leading position secondly we will bring in a strong competitor this will prevent 190,000 employees from becoming they sleep on the job they might wake up and finally I've lost their job it's simply not enough for me to keep pushing my employees to work hard every day she becomes stronger on their chase by I don't worry that a strong competitor will emerge and drag huawei down because that was a different world is becoming stronger Kohi and finally I won't ask you mr. Ren you're a visionary here in China you grew who are we to be the biggest telecom equipment maker in the country the second biggest maker when it comes to smartphones how would you describe your leadership and your management style she's the one equating fungi just wash it my management style is characterized by compromise free I'm not a demanding person who insists on all things for done according to my instructions I speak my mind should anyone object straight I am open to revising my ideas assuring God after the revision they'll need to put it into practice this process is defined by compromise it's not a time to stubbornly cling to my usual point because there are many aspects of technology management and finance that I don't understand I need to listen to everyone's views from what can integrate them into my decision-making japonica you general what shall I Shinji so the decisions we implement are the results of compromise between many parties so what drives you what motivates you what keeps you going these are their toys I do which is I so Sharon Kenda or so they make well it's horseshit uncompromised I actually am compromising with the u.s. I'm actually pro-american quested my company not to mass-produce many of our arts technology but produce them on a small scale however after we add it to the entity list I didn't suppress those technologies anymore so r5g standalone act as computing platform can send chips and servers okay man that is not an excuse to suppress them and didn't allow them to come out but in fact they've been in the works for more than 10 years compromise inside the company makes us United and compromise with the outside world creates a favorable environment at yg though are those enemy wha T told us what you mean danger caller why did we not panic when we were added to the entity list because we were fully prepared a long time ago could you switch to our own Co you got caught of course we have to undergo a run-in period I don't worry much about whether the company can survive or operate smoothly of course I Hana usually there Harbor ha have you ever thought about the legacy you want to leave behind well someone don't be shown you shabba didn't need to leave anything behind or PNC when people are gone they become dust there's nothing to leave behind how do you want to be remembered what she wants I'm into one go walk yeah I hope people will forget me it's a waste to remember me I hope they can stop thinking about me show was all about a piece a she shall fo if they remember me and turn this into a game to see who was more loyal will turn into a bird they can look into the sky when they were mostly I don't want them to think about me and it's too tiring for them to remember me mr. n thank you so much for talking to me on managing Asia okay [Music] you

Channel: Huawei

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Id: qfEnaPLJC3c

Length: 24min 0sec (1440 seconds)

Published: Mon Oct 21 2019