vendredi 31 mai 2019

Who is Ren Zhengfei, founder of Huawei

Today he is in the battle of his life.

Ren Zhengfei, founder of Huawei 

Huawei company’s founder, Ren Zhengfei, spoke to a journalist from the BBC at Huawei’s headquarters. He patiently answered questions after questions, setting the record straight on the company’s mission and values, as well as the recent challenges. He spoke openly as an industry professional, a company leader, and as well as a concerned father.

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  2. Of modest origins, Ren Zhengfei was born on October 25, 1944. He is the eldest of seven children of parent teachers in Guizhou Province. Evoking this period Ren Zhengfei indicates: "My personal life has been painful and lonely" . His childhood was marked by the famine of the Great Leap Forward2. In 1963, he graduated in engineering from Chongqing University3. During the Cultural Revolution, he had to interrupt his studies.

    He begins to work in civil engineering. Then in 1974 he joined the People's Liberation Army (PLA) as a military technician. He is the inventor of several technological achievements. He was then appointed delegate of the APL to attend the National Conference of Sciences in 19783.

    He has been a member of the Chinese Communist Party since the early 80s.

    In 1982, he left the army and went to work in the petroleum industry. Then, he founded a company of telephone connections for hotels. In 1987, he founded the telecommunications company Huawei5.

    In 2018, his fortune is estimated at $ 3.4 billion

  3. 2019 has been a particularly difficult year for Huawei. And things will only get worse for the big Chinese telecom supplier, warns Jan Stryjak, analyst at Counterpoint. Already excluded from the United States, it is on the way to losing the battle in Europe, a key market for its development outside of China. This is true in 5G network equipment. This is also true in smartphones.

    UK sledgehammer

    The big blow came from the UK. In July 2020, Boris Johnson's government did an about-face by banning telecom operators from using new 5G Huawei equipment from the end of 2020 and by requiring them to remove the equipment from the equipment manufacturer. Chinese networks by 2027. This is a hell of a blow because the London decision was expected as a spur to the rest of Europe. In January 2020, Boris Johnson had however left the door ajar to Huawei, simply limiting his involvement to 35% of the networks.

    Nothing like that in France. But the law on network security, adopted in July 2019, actually amounts to the same thing. Anssi, the national information systems security agency, charged by the government with whether or not to authorize the use of telecom equipment, has denied Free the use of Huawei in its 5G network. And SFR and Bouygues Telecom, which use equipment from Huawei in their 4G networks, are invited to withdraw them by 2028. As for Orange, which relies on Nokia and Ericsson in France, takes note of the new context in Europe and plans to turn away from Huawei, which it uses in other European countries such as Belgium.

    Towards the expulsion of Huawei from all networks

    Initially, the fears of European security authorities were limited to the heart of networks, the sensitive part where data is processed. They now extend to the access network formed by the radio antennas. "The direction to take is therefore clear: Huawei's expulsion from all core networks in Europe appears to be a question of when, not if, and its European activity in radio antennas could also be endangered, writes Jan Stryjak on Counterpoint blog. This will likely cause Europe to catch up in its 5G race with China and the United States. "

    The situation even more difficult in smartphones. The US embargo imposed on Huawei in May 2019 deprives its new devices, including mobile applications from Google and Facebook, which are very popular in Europe. And since May 2020, the embargo has been tightened twice, shutting off Huawei's access to vital chips to its products. While its smartphone sales in China continue to climb, international sales, and particularly in Europe, are in free fall. In the second quarter of 2020, the global share of its deliveries fell to 16%, down from 22% a year earlier. At large benefits from Chinese rivals like Xiaomi, Oppo, Vivo or Realme.

    Looking towards the American elections

    “Even though the market seems to be recovering somewhat, Huawei's trajectory remains worrisome, says Jan Stryjak. So it looks like Huawei is fighting a battle on the European front that it simply cannot win. Recently, Huawei management used the image of a Japanese WWII plane - shot full of holes but still in flight - as an analogy to illustrate its current situation. Unfortunately to them, now it looks like the wings have fallen. "

    According to the Counterpoint analyst, Huawei's future appears to be on hold following the outcome of the US presidential elections. If Joe Biden wins over Donald Trump, Huawei could hope for US sanctions relief as part of a China-US trade deal. Huawei's consumer business would likely be the first to see the pressure easing, with its network infrastructure business not benefiting until much later. “But even this scenario is not without its challenges,” says Jan Stryjak. “Even if Huawei gets a reprieve and is able to start rebuilding itself, Huawei's brand and public image outside of China may well have suffered. irreversible damage. "