Huawei expects the 2022 challenges in the midst of technical politics, deglobalisation

Huawei expects the 2022 challenges in the midst of technical

Huawei Technologies warns it will see "real challenges" in 2022, amid uncertain business environment, "technology politics", and further "decrofting". It will also unveil plans to streamline decision-making processes at its local offices next year, giving those clothes more independence.

The Chinese tech retailer expects to close the year with 634 billion yuan ($ 99.45 billion) in revenue, down 28.88% from 891.4 billion yuan in 2020. Its transportation business had remained “stable ”And its enterprise unit has seen growth, said Huawei rotating chairman Guo Ping, in his New Year's message on Friday to employees.

He said digital transformation in global economies had become a key driver of growth and new opportunities in green and low carbon technologies, but warned of uncertainty in the coming year.

"Invisible business environment, technological politics, and a growing deregulation movement pose significant challenges," Guo said. "Against this background, we need to stick to the strategy. us and respond reasonably to outside forces that are beyond our control. "

He noted that Huawei would be pushing ahead with the focus on smart infrastructure and devices, and looking to respond more quickly to consumer needs with shorter “management chains”. This involved the creation of "integrated teams" and "land-specific subsidiaries", he said.

In particular, Huawei in 2022 would look to streamline the industry's decision - making processes by giving local offices more independence. This would see these outfits embracing the decision-making authority previously held at its Shenzhen headquarters.

Further changes to its organizational structures could see the integration of business across its local offices around the world. Huawei has business activity in more than 170 markets, including 14 offices in the Asia-Pacific region outside of China.

The main goal of his organization-wide transformation efforts was to strengthen operational efficiency and messenger service delivery, Guo said.

Building on its product development plans, he noted that Huawei's software offerings would revolve around EulerOS while its device package was powered by HarmonyOS.

"Both of these ecosystems adhere to an open source strategy, allowing all software developers to use, enhance, and benefit from it," he said. "We will continue to build and contributes to online developer communities as well as brick-and-mortar innovation centers. "

He said Huawei would increase its investment in HarmonyOS and EulerOS, but did not provide any details on what these meant.

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EulerOS is positioned as Huawei’s infrastructure platform that supports both cloud computing and cloud services. It runs on Huawei version of Linux OS.

HarmonyOS currently supports more than 220 million Huawei devices and more than 100 million devices are developed by third-party vendors that currently run on HarmonyOS, according to Huawei.

More investment would also be poured into his digital energy business, according to Guo. Founded as a business unit in June 2021, Huawei Digital Power Technologies aims to digitize traditional energy and build products that integrate electronic and electric power capabilities.

He also noted the potential for growth in the automotive industry, where he aimed to make Huawei the "preferred supplier" of new parts in intelligent vehicles. The Chinese retailer this year would spend $ 1 billion in research and development (R&D) for intelligent automotive components.

U.S. President Joe Biden last month passed legislation banning companies such as Huawei and ZTE from obtaining licenses for network equipment licenses in the U.S. The Secure Equipment Act 2021 would require the Federal Communications Commission (FCC) to adopt new rules stating that it would not review or approve any authorization applications for network equipment that posed national security threats.

The FCC in 2020 identified Huawei and ZTE as national security threats, indicating that each company had close ties to the Chinese Communist Party and the Chinese military.

Huawei has previously announced a U.S. government move to ban semiconductor exports as another attempt to curb foreign competition. The Chinese retailer was added to the U.S. government entity list, prohibiting U.S. companies from moving goods to listed companies unless they had received permission from the U.S. government.

The move prompted Huawei to increase its research and development investment by 30% as well as invest in redesigning its products, Guo then said. This had led to a redesign of over 1,800 boards and rewrites of about 16 million lines of its software codes, with the company looking to other sources for many of its products.

Trade and export bans had led to slow earnings in recent years, including declining profits and smartphone sales, as well as disruption of Huawei's supply chain, prompting the retailer to diversify the product focus and chip suppliers.

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