Ren Zhengfei admitted that Huawei is still facing sanctions, and open innovation is the real way out for a company.

Original @Xinshang

Ren Zhengfei's latest speech: Huawei is still struggling!

On October 31, it was reported that the International Collegiate Programming Contest (ICPC) released the minutes of a symposium between Huawei's founder and CEO Ren Zhengfei, the ICPC chair, coaches, and contestants. The minutes exceeded 10,000 words and were recorded on October 14th of this year.

During the symposium, Ren Zhengfei had friendly exchanges with contestants from different countries. Regarding the questions raised by the contestants, Ren Zhengfei shared his views on topics such as artificial intelligence and other technologies, Huawei's sanctions by the US, and global development. He also addressed questions about entrepreneurship and education for young people.

01

Huawei Still Faces Sanctions

When discussing artificial intelligence, Ren Zhengfei admitted, "The world's trend towards AI is unstoppable." He firmly believes that the application of AI will be a turning point in this era. Just as the train, textile machinery, and ships invented by the British led the transformation of the times, the rapid development of cutting-edge technologies such as chips and computing power will undoubtedly usher in the era of intelligence.

Ren Zhengfei also suggested that contestants, if given the opportunity, visit Tianjin Port in China to witness firsthand the absence of staff in processes such as loading, transportation, and customs clearance. In the past, industries like steel smelting and coal mining were arduous, but now, with the help of AI, workers can judge the quality of molten steel with just a pair of glasses, and AI can also perform coal mining tasks.

Regarding the question of whether AI replacing human work as a tool will give people more time to enjoy life, Ren Zhengfei said that as this era arrives, the demand for human labor will gradually decrease, while the total wealth created will increase, enough to support those laid off. "Only when the total wealth increases can any country achieve a reasonable distribution of social wealth. This is a social issue, and what we are discussing is a technical issue."

In fact, whether AI can completely replace human work has been a topic of great concern. Although it is not yet certain which professions will be the first to lose jobs in the AI era, some people hold different views. Jensen Huang, CEO of NVIDIA, believes that AI is 1000 times stronger than humans in some aspects but will never replace them.

When discussing Huawei's global layout and sanctions, Ren Zhengfei clearly stated that Huawei has gradually established numerous capability and research centers worldwide after two to three decades of exploration. He also cited Einstein's theory of relativity as an example, which took over a hundred years to be proven correct.

Ren Zhengfei said, "Scientific research knows no borders; it's engineering and technology that do." Companies can choose not to disclose their engineering and technology. The United States transformed from a backward country to a developed one because of its openness and inclusiveness. All countries and companies worldwide should learn from the US's openness; otherwise, they will fall behind.

Meanwhile, Ren Zhengfei admitted that Huawei is still facing sanctions. Open innovation is the real way out for a company. Those not sanctioned can directly use advanced US technology and tools to drive their development.

It is reported that the US imposed sanctions on Huawei in 2019, prohibiting the US Department of Defense from contracting with any entity using Huawei equipment. The US Department of Commerce also added Huawei and its affiliates to the controlled "Entity List," imposing comprehensive sanctions. Although severely impacted by the US onslaught, Huawei did not falter. After investing heavily in research and development and actively cooperating with domestic suppliers, Huawei finally overcame the difficulties, and its smartphone business has recovered.

This year, Huawei's multiple products have garnered significant attention. According to data from the third-party market research firm Canalys, in the third quarter of 2024, Huawei's domestic mobile phone shipments reached 10.8 million units, a year-on-year increase of 24%, with a market share of 16%, ranking second in China.

02

Entrepreneurship is Not for Fun

Regarding entrepreneurship among young people, Ren Zhengfei reflected on his own experiences, stating that he had no choice but to start a business because he couldn't make money and needed to feed his family. Notably, Ren Zhengfei emphasized, "Entrepreneurship is not fun; it's a necessity of life. It's not about seeking happiness."

Ren Zhengfei's advice to young people is, "If you want to start a business, do it for your ideals without regrets, even if it means becoming a beggar." He also cited the entrepreneurial journey of the founder of ByteDance as an example, highlighting the hardships and challenges of the process.

On the topic of entrepreneurship, Lei Jun, the founder of Xiaomi, has also publicly expressed similar views. He believes that entrepreneurship is not for everyone; it's for those willing to endure hardships. Lei Jun joked, "To be a true entrepreneur, you must have the mindset of a stray dog."

On October 31, Huawei released its consolidated and parent company financial statements for the third quarter of 2024, showing that in the first three quarters of this year, Huawei achieved operating revenue of RMB 585.9 billion, with a net profit attributable to shareholders of equity of RMB 62.87 billion. In the same period last year, Huawei's operating revenue was RMB 452.3 billion, with a net profit attributable to shareholders of equity of RMB 72.9 billion. Overall, Huawei's revenue in the first three quarters of this year increased by 29.5% year-on-year, but its net profit attributable to shareholders declined by 13.8%. It is worth mentioning that Huawei's research and development expenses exceeded RMB 127.412 billion in the first three quarters.

During the interview, Ren Zhengfei also revealed to the public that it is still too early to say Huawei will survive. "Our internal discussions and conversations with you are not on the same level. Our internal discussions are still about how to overcome many difficulties."