Original title: Ren Zhengfei interviewed by the Economist: Huawei 5g technology license can be sold at one time
Huawei is willing to sell 5g technology Ren Zhengfei's latest interview full text
4hw.com.cn: on September 16, Huawei's "voice community" published the minutes of an interview with the economist by Ren Zhengfei, the company's founder, on September 10.
In the interview, Ren Zhengfei introduced Huawei's financial performance in the first eight months of this year. The revenue increased by 19.7% and the profit was the same as last year. Turning to the reasons for the lack of profit growth, he explained that the main reason is that the strategic investment is increasing significantly. Huawei has added thousands of employees, all of whom are high-quality talents, to repair the "holes" cleared by (American) entities.
'now from 5g & hellip& hellip; To the core network, we have filled the 'hole' of the network. On September 18, we will release the shengteng AI cluster, 1024 nodes, which is currently the fastest artificial intelligence platform in the world. " Ren Zhengfei said.
He also confirmed to the economist that Huawei can license the transfer of technology and processes to western countries and other western countries to produce the same equipment. For the reporter's questioning, the Huawei founder stressed: "it's just a technical secret. It's impossible to transfer even the employees."
The following is the full text of the interview minutes with deletion:
1. David Rennie, President of the Beijing Branch of the economist and columnist of "teahouse": president Ren, you are a very important global business leader. Therefore, before raising other Huawei related questions, we would like to ask you a question about globalization and what challenges technology brings to globalization. You now have many big companies selling products and services that can only happen in a highly trusted world, because you sell not tennis shoes or tennis racket, but autopilot cars or medical equipment. From the perspective of globalization, trading for such products needs to be based on lifelong trust. But it is difficult for countries like China and the United States to generate trust among themselves. Can this problem be solved? How should it be solved? We'd like to hear your opinion.
Ren Zhengfei: you are welcome to ask questions directly, and I will answer questions very frankly.
Economic globalization is of great benefit to the whole mankind, because it is of great significance to the optimal allocation of resources and reduce service costs, so it will accelerate the progress of society. Economic globalization was first put forward by western society. The guiding ideology of the west is: the West provides advanced technology and equipment, and developing countries provide raw materials and low-end labor, so as to carry out global economic trade. However, the West did not expect that developing countries will gradually move towards high-end from low-end production.
In the 1960s and 1970s, the West encountered a serious economic crisis, which was the labor capital conflict. Western economists put forward a theory 'high wages, high prices and high consumption', which solved the plight of the West in a short time and realized the rapid development of the economy. Until the end of the last century, the western society had a rapid economic growth in the past few decades. The basis of this economic model is that there must be high income. Without high income, high income distribution cannot be completed. Although developing countries provide vast markets, developing countries will also have a large number of commodities entering developed countries. Such conflicts and contradictions are not the problem of globalization itself, but the correct coordination between the two development mechanisms.
In terms of the relationship between Europe and China alone, how to solve this problem. China should fulfill its WTO commitments and open up its service and manufacturing industries on a large scale & hellip& hellip;。 In the past two years, the speed of opening up has accelerated, a little later than the commitment. The UK and Europe have accumulated hundreds of years of experience in the service industry, and China also has great demand. If the European service industry enters China on a large scale, it will be conducive to China's social progress. China earns money from Europe with its products, and Europe earns money from China with its products and services, which is conducive to financial balance. For example, China's car tax will be reduced to a very low level in five years. Cars in Britain and Europe are the best quality cars in the world, and cars in Japan are the most economical and high-quality cars. Therefore, the problems in globalization need to be solved one by one through consultation. It is not globalization itself that is wrong, but the mechanism has some problems in the new environment, but it has not sat down and coordinated well.
Another example is Russia. If the EU accepted Russia to join the EU that year, it is estimated that Russia's energy and Western machinery and equipment transactions will not be less than 1 trillion euros. These economies will be injected into Europe, which will help Europe solve the internal contradiction between the rich and the poor.
I had good communication with Osborne and Cameron. At that time, Osborne reduced British tax to 21%, which did not affect British finance. Why? People receiving relief funds need conditions to receive relief funds. They must find a job or do some public services, such as taking care of the orphaned and widowed elderly, public health, etc. The reduced tax revenue is equal to the reduced social welfare expenditure, so Britain is very stable. Theresa government continues to announce that the tax will be reduced to 17%. A series of British policies are the genes for Britain to become an investment center again. Therefore, we should adapt to globalization in continuous self-adjustment, rather than a standard globalization will adapt to the whole world. This is my immature view.
2. David Rennie: I know my colleagues have a lot of questions about Huawei. You just mentioned how Europe, Japan and other countries view economic globalization, but you didn't mention the United States. In view of the current China US relations, are you worried about the future trend of globalization?
Ren Zhengfei: Yes. Because the United States is the most powerful country in the world, it was originally the world police to maintain world order. The world's return is to accept the US dollar as the international circulation and reserve currency. The United States collects seigniorage from the world by issuing US dollars. If the United States continues to shoulder the responsibility of maintaining world order and stability, it will not suffer. But now the United States itself has destroyed this mechanism. People no longer believe that the United States is maintaining world order or that the US dollar is the most reliable reserve currency. When the world's trust in the United States and the dollar swings, there will be a crisis in U.S. debt and U.S. stocks, which will lead to huge economic and political turmoil in the United States.
3. Patrick Foulis, London business editor of the Economist: in 2019, American diplomats made great efforts to try to persuade American allies not to use Huawei equipment. Mr. Ren, have a series of actions taken by the United States been successful now? These efforts of the United States are mainly aimed at its core allies, such as Britain and Australia, but it seems that Vietnam and other countries are also facing great pressure from the United States to ask them not to use Huawei equipment. How successful is this series of US moves to boycott Huawei now?
Ren Zhengfei: first of all, it is a normal business choice whether to buy Huawei equipment or not, because many customers did not buy Huawei equipment in the past, and most of the selection process was for commercial reasons. However, when choosing 5g, the United States may be wrong to treat 5g as a political factor and a dangerous goods. The choice of 5g should be from the perspective of national development, not from the political perspective.
Let me give an example. A thousand years ago, China was in the civilization of the Tang and Song dynasties. At that time, China was the most powerful country in the world. The prosperous image of the river map on the Qingming Festival was not fictional, but a real description. Hundreds of years ago, the British Philosophy and social system promoted the industrial revolution. The British invented the train and the ship, while China was basically a carriage. The speed of the carriage was slower than the train and the cargo capacity was lower than the ship, so China fell behind. Britain has become an industrial power in the world, selling industrial products all over the world, which has had a great impact on the social progress of various countries. So far, two-thirds of the world's population can speak English, which is that speed determines social progress.
5g is an information connection technology with high speed, high bandwidth and low delay. It represents the speed of the information society. Whoever grasps the speed will move forward quickly. In the information society, giving up speed and the choice of excellent information connection technology may also slow down its economy.
The British people are very smart, and British universities are also the best in the world. If you want to revitalize industry, you must master high speed in the information society. Optical fiber network, 5g technology based on optical fiber network, which can connect supercomputer and super storage system and support artificial intelligence. If artificial intelligence can increase the efficiency of existing production capacity ten times, Britain will become an industrial power with hundreds of millions of people. I say 'ten times efficiency' casually. In extreme cases, it is also possible to improve efficiency by a hundred times or a thousand times. The ancestor of artificial intelligence is Turing, who is British; Dolly the sheep was cloned by an Englishman. If genetic technology and electronic technology are integrated into one technology, what will the world look like? I can't imagine. Britain has great room for revitalization, and the speed determines whether Britain will move towards victory.
4. Patrick Foulis: I'd like to ask about Huawei in the past few months and the impact of the US crackdown on Huawei. Can you talk about your financial performance since Huawei was added to the "entity list" in May this year? Will the revenue decline due to the 'entity list' event?
Ren Zhengfei: by August this year, our revenue had increased by 19.7%, and our profit was the same as that of last year. The revenue growth rate is decreasing, about 30% at the beginning of the year, 23% in the middle of the year, and 19.7% in August. The profit did not increase, mainly due to the substantial increase in strategic investment. We added thousands of employees. These employees are high-quality talents, such as some talented teenagers and fresh graduates. They come mainly to repair the 'hole' we have been cleared by the entity. Now from 5g & hellip& hellip; To the core network, we have filled the 'hole' of the network. On September 18, we will release the shengteng AI cluster, 1024 nodes, which is the fastest artificial intelligence platform in the world.
Now the entity list has an impact on us is the terminal, and the 'hole' of the terminal will take some time to repair.
Patrick Foulis: is the overseas consumer business shrinking and declining now?
Ren Zhengfei: before, terminals have declined overseas, and the rate of decline is slowing down, about 10%.
5. Patrick Foulis: later this month, you will launch a new Huawei mate 30 series mobile phone. Does the mate 30 series have Android and Google Apps installed? What's going on now?
Ren Zhengfei: there is no pre installed GMS ecosystem of Google.
Patrick Foulis: then I have another question. If Huawei's mobile phone can't be pre installed with a full set of Google applications, can you predict that the overseas sales of Huawei's mobile phones will be much lower in the future? Does it mean that Huawei will face a big financial blow in the second half of the year, including the fourth quarter?
Ren Zhengfei: first of all, we still want to continue to use Android. We are still very friendly with Google. If the U.S. government does not allow us to use it, we also have alternative methods, but if we want to replace it, it will take two or three years to complete it. Therefore, the overseas sales of terminals are in this period