In an exclusive interview with the weekly Challenges, the managing director of Huawei France, Zhang Minggang said " to prepare for the worst " concerning the trade tensions between China and the United States.
At the heart of a never-ending soap opera that sees the Trump administration blaming China - and Huawei in particular - for spying on its infrastructure, the telecom giant is deploying a series of countermeasures aimed at gradually getting rid of its American ties.
Huawei wants to rest on its own systems by 2021
Huawei keeps his head up despite financial forecasts revised downward. In fact, the Chinese began in 2012 to develop its own systems that tomorrow may be added to Android and iOS on the chessboard of mobile operating systems.
" In 2012, we started the development of a new operating system, not just for smartphones, but an operating system, for routers, base stations ... " says Zhang Minggang at Challenges. " We are generalists in software and hardware. This is essential to get out of the ecosystem in which Google, Microsoft, and Apple make the operating systems. We are forced to do it.
A software side that makes sense when we know that Huawei has, since 2004 already, its own semiconductor foundry with HiSilicon, which develops for it the famous Kirin chips that equip the smartphones of the brand.
"Plans B", as the CEO of Huawei France calls, that the company intends to "activate" as soon as possible. " We are preparing for the worst, " says Zhang Minggang, " In 2021, if the situation persists, we will have our own technologies. Our founder said it recently: we are going through a difficult period but, in 2020, we will come out stronger than before ".
Falling forecasts, but an almost assured balance
Asked about the bad results that already stem from Sino-US tensions, the company manager reassures. " We are not listed on the stock market. The company belongs to its employees. We achieved $ 107 billion in revenue in 2018. We expected 20% growth this year, or 125 to 130 billion revenue. We had to review our plans. We will be stable at around 100 billion.
Zhang Minggang also warns about the consequences of these commercial disturbances on the other side of the Atlantic. According to him, the repercussions for US trade are equally resounding. " Some of our suppliers have experienced declines of 10% of their share price. More than 80,000 jobs in the US technology stream may be at risk, "he adds.
A true fuse in the trade war between Washington and Beijing, Huawei will have to be resilient to maintain its leadership status. As to whether, as announced the CEO of the company, Huawei will emerge stronger from this test, only the future will tell.
0 Comments