In 2017, Huawei Technologies Co., Ltd. also delivered a beautiful answer sheet: Global sales revenue reached 603.6 billion yuan, a year-on-year increase of 15.7%. Faced with 40 years of reform and opening up, Huawei CEO Ren Zhengfei has any thoughts on Huawei. April 4 On the same day, Renzheng was interviewed by the media and bluntly stated that 'Huawei has never moved out', and elaborated on the recent adjustment of Huawei's Board of Directors' personnel affairs, saying that 'all decisions are not what I did'; serious problems for large companies in Huawei Ren Zhengfei stated that solving these problems is not an overnight event. He first shelled and then a little reform. The following is an interview record.
On the afternoon of April 4, the Shenzhen government and Huawei signed a cooperation agreement with Huawei headquarters in Putian. Huawei will take root in Shenzhen and build an international headquarters. After the meeting, Renzheng received an exclusive interview with the reporter and talked about reform and opening up, corporate development and internal management. , and the road to new technologies. 1 In-depth reform and opening up, it will be able to hold up the national dream
Reporter: This year marks the 40th anniversary of the reform and opening up. In the deep-water zone of reform, how should it be promoted?
Ren Zhengfei: 'Rule of law, marketization', earnestly implement these six words, the development prospects will be very good. First, through openness, let more foreign companies come in. Second, Huawei is also very responsible for the world. If we go out and always want to “get a name”, can we survive in more than 170 countries? The same goes for foreign companies, they are generally responsible, and internal controls are stricter than ours. The government not only welcomes Huawei’s development, but also All companies in the world should be welcomed to develop so that they can hold up the country’s ideals and dreams.
In the future, our country should stick to more openness and welcome foreign companies to invest. I spoke with TSMC Zhang Zhongmou. When we did not study abroad, we could not have such a good condition for him. It was like him to start a business and become a world leader. We can only be Starting from a young age, there is no technology to go for an agency. Without capital, everyone will come together and gradually come. But today China has such good conditions. Why is it not more open?
Reporter: Does the United States have any influence on Huawei for China's trade protection measures?
Ren Zhengfei: Impact is inevitable. As a business, we must slowly overcome. In recent decades we have not only complied with the laws of various countries, adopted UN resolutions, but also respected the extraterritorial jurisdiction of the United States. The market does not buy our products. This is the customer’s choice. It's normal. If we say that we threaten US national security, what are the reasons? What is the truth? What is the evidence?
The United States is a country under the rule of law. Dealing with problems will eventually lead to facts and evidence. We have no mistakes. If we are rumored or misunderstood, we are not objective and we will not be too concerned about it.
2 rounds of value-minded chairman to avoid 'a courtier'
Reporter: Huawei has just completed the re-election of the board of directors, changing the rotating CEO system to the rotating chairman system. The new board continues the collective leadership model. What is the reason for this?
Ren Zhengfei: The three chairmen of the rotation are the top leaders of the company during the duty cycle. They have the highest power to handle their daily work, but are subject to the collective assistance and constraints of the standing board of directors. All documents need to be approved by the vote of the board of directors. The power of holding employee representatives will vote on the governance of relevant rules and major issues. The power of the Supreme Leader Group shall be governed by the rules. The Supervisory Committee shall supervise the actions of the Board of Directors and supervise the Supreme Leader.
The highest power is in the cage of collective leadership, rules compliance, and behavioral constraints, so as to form a cycle. The rotation of the three rotating chairman of the chairmanship is mainly to avoid the “great chaos” and to avoid the loss of outstanding cadres and outstanding talents.
Reporter: After the new member of the board of directors comes out, does the outside world say that Huawei’s actual leader is still you?
Ren Zhengfei: Over the past decade or so, Huawei is a collective management decision-making mechanism. All decisions are not what I do. I just have the right to speak with you about my ideas. Actually, they sometimes do not listen. Many of my ideas are also It has not been implemented. So, I'll talk a few more times. Maybe they've heard it in a few years?
Reporter: What changes will the new board make to Huawei's future development?
Ren Zhengfei: The new board is only iterative, introducing some fresh blood. Most of them are still being selected. Our company’s first generation of struggle collectively pursues an open and progressive philosophy, working together with 180,000 employees over 30 years. , Transformed a plate of 'sands' into a 'black land' of a group structure, and put 'carrier' on the starting line. The second-generation fighting group must work together with all staff to continue to plan to loosen 'land' and strive to increase soil fertility. Resolutely striving for the rise of strategy, and in 20 to 30 years, establish a clear direction, orderly organization, tenacious struggle for the collective, together with outstanding Western companies to serve the prosperity and development of human society. 3 R & D to 'open a first Gun, hit another gun'
Reporter: Huawei has been working on 5G since 2009. This year, it will launch a full-scale 5G network equipment solution for large-scale commercial applications. In 2019, it will launch Kirin chips and smart phones supporting 5G. What do you think about the future market space of 5G?
Ren Zhengfei: Advance research in science and technology does not mean that social needs have already emerged. If social needs do not develop to the extent we imagine, the significance of input is not that great. I don't think that 5G has such a large market space, 5G may be overheated. Because the demand is not fully generated. If there is a need for 5G for unmanned driving, how many cars can be used to achieve unmanned driving? Ships If the aircraft has achieved pilotless driving, but the pilot is not on the plane, can passengers dare to board the plane?
If society needs higher bandwidth, 4G will be able to do it. Isn't Japan and South Korea doing a good job? Today's equipment has not played a good role. If we expect to replace it with technology, it is not realistic. System engineering is not There is a problem that the 'trumpet' can solve.
This is my personal opinion. The business department hopes that 5G will be more quickly commercialized so that they can sell more products.
Reporter: Huawei established Cloud BU last year. Many companies are doing cloud computing. How does Huawei make its own characteristics?
Ren Zhengfei: In terms of cloud computing, in fact, Huawei does not do business content. We just do a basic platform. This basic platform is like the dark land in the northeast. Everyone can grow crops, plant 'soybeans', and plant 'gazettes'. To be a safe city, to be a car.... Huawei Cloud is a collection of 10 million pieces of content. There are thousands of Huawei's partners. In fact, many of the 'clouds' of news reports are made by them. They succeeded and made a glorious point. Give us 'Land'.
But the transformation of 'land' is very difficult. Until this year we couldn't say that we really did this platform. Transmission and exchange are not platforms, but it is the foundation of the platform. Huawei connects more than 170 countries in the world, and more than 1 trillion U.S. dollars The exchange of stock exchanges, transforming it into a platform, allowing all 'crops' to grow, this is our ideal.
Reporter: In 2017, Huawei’s R&D expenses was RMB 89.7 billion, accounting for approximately 14.9% of annual revenue. In the past ten years, Huawei’s R&D spending totaled more than RMB 394 billion. In the next decade, Huawei will spend over US$ 10 billion annually. The scale continues to increase investment in technological innovation. What areas will Huawei's future innovation focus on?
Ren Zhengfei: Fundamental research on the main channel, basic research and applied research on artificial intelligence. Artificial intelligence breakthroughs are mainly algorithms, computational power, and data. These are very difficult to break through. We follow the world's investment. , Synchronous world development.
In the field of artificial intelligence, we mainly do basic research to improve internal management. If we want to apply to products, we still have quite a long time and distance. For frontier science, R&D implements the first 'open shot', let the bullets Fly for a while'; seeing the clues and then 'playing a gun' can only be determined by small-scale research discussions; if attacking the 'wall mouth' needs to invest in 'van Fritz ammo', decisions are made collectively by high-level groups.
Reporter: Does Huawei do blockchain?
Ren Zhengfei: The blockchain hasn't mentioned the schedule yet. Algorithmic power is extremely sophisticated and extremely difficult.
4do not diversify business, always focus on the main channel
Reporter: Huawei's global sales revenue last year was 603.6 billion yuan, a year-on-year increase of 15.7%, and a net profit of 47.5 billion yuan, a year-on-year increase of 28.1%. It can be said that it is very bright.
Ren Zhengfei: Actually, we didn't do well. Last year we did an activity called 'Phoenix Burning Dead'. At that time we dealt with a lot of senior cadres. Many people dropped down by two levels. I was also one of the targets of the disposition. All have been disciplined. Why? It is to use this to alert our company management to be more scientific.
Reporter: Huawei has always emphasized the focus on the main channel, but now the new economy is so active. Have you ever thought about cross-border?
Ren Zhengfei: Huawei is a pipeline, only the flow of traffic. The terminal is the pipeline, it is equivalent to the 'faucet', the enterprise business is also the pipeline. Our technical theoretical architecture model, will implement the 'Moore's Law of cost reduction per bit', do the network The continuous simplification of the network. The continuous simplification of the network, our sales revenue will continue to decrease, but the benefit will be to the entire society. Huawei has been doing this for so many years. For example, optical networks calculate the cost per bit. In fact, the price has been reduced by nearly 10,000 times. This has made the Internet a reality. We are constantly declining and we need to make greater research in basic science.
Huawei will not do diversified business and will always focus on the main channel. In the next two to three decades, I may not have lived in the world, but I believe that the company leadership will continue to focus.
Reporter: Huawei recently released the "Human Resources Management Compendium 2.0 General Outline (Open Discussion Paper)" (hereinafter referred to as Outline 2.0), which provides a direction for the improvement of the company's human resource management in the future. Do you worry that Huawei is today? In terms of body mass, there will be big business problems in management.
Ren Zhengfei: We now have serious illnesses in large enterprises. The purpose of the Outline 2.0 is actually to criticize ourselves. How can we streamline our organization and increase efficiency? Senior leaders criticize ourselves, saying that the management of people once was scientific management, How do we become mathematics management now? This is a rigid dogma. The institutions are too big and heavy....... This way, the board members spearhead Huawei’s efforts to promote the company’s alertness. Of course, solving these problems is not a matter of overnight. A little bit of reform. As long as we see the direction, we can slowly reform and increase efficiency.
5Huawei Headquarters Base is Always in Shenzhen
Reporter: Huawei signed a cooperation agreement with Shenzhen to take root in Shenzhen and look forward to the future. This is also the best response to the external concern of Huawei.
Ren Zhengfei: Huawei's 'relocation' is a non-existent event. We have never thought of relocating. All of them are hype by some media. Our headquarters is always in Shenzhen. This is the core of Huawei’s global leadership.
Reporter: Shenzhen will be the first to introduce 20 policy measures to increase the reform of the business environment this year. Do you think there is room for improvement in the business environment in Shenzhen?
Ren Zhengfei: Shenzhen's 'business environment' is generally very good. We often work until 12:00am when we start our business. We go to a food stall to eat bowls of fried rice noodles. The shopkeeper got up again to give us breakfast at 4 or 5 in the morning. They said that you To make big money, we're 'better.' Cantonese people are very tolerant, this is a very good business environment. Shenzhen is now very much improved by the rule of law and we are very satisfied.
Reporter: You have always stressed that Huawei's innovation must do basic research. What advice do you have for strengthening basic research in Shenzhen?
Ren Zhengfei: Now that social thoughts are frothy, everyone wants to speculate on stocks and real estate speculation, but mathematics is not able to 'fry' out. It takes decades of effort. 5G has two key technologies: long code and short code. The code is a coding method written by a professor in the United States in 1964. The short code is a coding method written by a professor in Turkey in 2008. Around these two equations, dozens of companies have followed the study for tens of thousands of people in decades. Standards, before you know how hard it is.
Shenzhen is active in investing in basic education. Starting such a large number of universities and increasing investment in dozens of primary and secondary schools each year will soon start basic research. Although this is a long-term process, the Chinese civilization has been five thousand years and we have been for decades. Can't wait?