How Huawei is reorganizing its business under US sanctions

The financial year 2021 was a nightmare for Huawei. The turnover of the Chinese telecommunications equipment and smartphone giant fell by almost 30% to 634 billion yuan (87 billion euros). The crash is the result of violent US sanctions against him. From 2019, Huawei can no longer get technology ” made in the USA “This has led to a huge drop in smartphone sales. However, these sanctions, adopted under Donald Trump, seem to have been carved in stone… Since his arrival at the White House, Joe Biden has decided to maintain a tough stance on Huawei and China.

In other words, Huawei has no choice: it must urgently reinvent itself and invest in activities where it can do without Uncle Sam’s components and technologies. The task is not easy. But the group, which has about 190,000 employees worldwide, wants to capitalize on its vast research resources, which account for nearly half of its workforce, to revive. At a conference in Shenzhen on Tuesday, Ken Hu, Huawei’s deputy CEO, spoke in detail about his strategy.

Loss of leadership in certain technologies

His goal? Make Huawei a benchmark player that will help companies in all industries succeed in their “digital transformation” to increase sales, reduce costs and reduce carbon footprint. Connections, terminals, cloud … Huawei wants to offer a full range of tools needed for manufacturers. The challenge for the Shenzhen Group is to stay at the forefront in all of these areas, but without American technology. Ken Hu does not hide this: the group could not do without them “Maintain leadership in certain technologies”. To continue to innovate, Huawei is mobilizing its researchers in areas that are considered promising, where they can work seamlessly, especially in software and computer systems architecture.

Huawei claims that its work is bearing fruit. At the front of the connection, the group seeks increase network bandwidth, coverage and experience », launches Ken Hu. To do this, the leader wants to bring “everywhere”, from “10 Gbps connection” thanks to its 5.5G – 5G enhancement – and its versions for fixed use. These technologies will provide experience “More exciting”says Ken Hu, and more appropriate “Industrial control scenarios”.

“Transformation of data centers into supercomputers”

All data collected by mobile networks is intended for routing to cloud infrastructures, for processing by various algorithms and artificial intelligence software. That is why Huawei is investing heavily in this area. The goal, according to Ken Hu, is to to turn data centers into separate supercomputers to exponentially increase productivity and energy consumption “.

As for terminals and smartphones, Huawei is forced to reconsider its entire strategy. “Because of the lack of chips [lié aux sanctions américaines, NDLR]this activity has declined sharply over the past two years. “, says Hyun Hu. His idea: to develop more“User experience” on “All aspects of everyday life”, instead of continuing, as Huawei has done in the past, to increase the output of increasingly powerful smartphones. To tell the truth, these prospects seem a little vague. Huawei illustrates its view with the launch of a connected watch late last year, which can monitor several health parameters to better manage and combat certain diseases.

New organization

At the end of, Huawei has revised its organization to better sell its solutions to manufacturers. Each sector now has its own special teams that better adapt to customer needs. This is a must, says Ken Hu, because not all companies have the same level of maturity in terms of digital appropriation. “New information and communication technologies and the financial sector were the first to launch this adventure, and therefore their transformation is profound, down to their basic production systems.”says the manager. And vice versahe continues, still needs to be done “Real estate, construction and agriculture”. Will this new strategy allow Huawei to recover? The answer in the coming months.