Huawei founder seeks company shift to software

The founder of Chinese tech giant Huawei, Ren Zhengfei, called on the company’s staff to seek growth in software and diversify from its hardware operations.

The shift in goals, which came in an internal memo seen by Reuters, was in response to US sanctions that had crippled the company.

In the memo, Ren said that the focus on software was key as the future of the sector is fundamentally "outside of US control and we will have greater independence and autonomy".

Huawei should focus on building software ecosystems, such as its HarmonyOS operating system, its cloud AI system Mindspore, and other IT products, he said.

Ren added that the company should strengthen its position at home and in other markets with a view to possibly excluding the US.

"Once we dominate Europe, the Asia Pacific and Africa, if US standards don't match ours, and we can't enter the US, then the US can't enter our territory," it said.

The company was struggling against the sanctions imposed by Washington in 2019, during the Trump administration. The US then barred the tech giant from accessing critical US-origin technology and would not allow it to design its own chips and source components from outside vendors.

The blacklist also barred Google from providing technical support for new Huawei phone models and access to Google Mobile Services.