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    Huawei says it is hiring more scientists in the face of U.S. sanctions

    Huawei founder Ren Zhengfei will attend a panel discussion at its headquarters in Shenzhen, Guangdong Province, China on June 17, 2019.

    Ally Song | Reuters

    Beijing-China telecommunications giant Huawei said it is expanding its team of scientists despite losing revenue due to US sanctions.

    Now that the United States under President Joe Biden’s administration is enthusiastic about competing with Beijing and continues to restrict Chinese companies’ access to semiconductor technology from the United States, China is doubling its research to bring its own technology. There is no doubt that it will help you build.

    Huawei CEO Ren Zhengfei claimed at an internal meeting in early August that the company had paid its expanding workforce on time, despite pressure from the United States. Many Chinese companies often postpone payments to their employees or force them to resign without a compensation package.

    “Despite US regulations over the last two years, we haven’t changed our human resources policy. Salary and bonus distribution, job grade upgrades, company stock distribution, etc. are all normal. It’s a business as it is, “Len said in English. Language transcripts seen by CNBC. “There was no turmoil within the company. Instead, the company was more united and attracted more talent.”

    Telecommunications companies claim to have increased their workforce by 3,000 between the end of 2019 and 2020 during the coronavirus pandemic. According to Huawei, more than half of our employees, or 53.4%, are engaged in research and development.

    In 2019, former President Donald Trump’s administration put Huawei on a blacklist that restricts US companies from selling technology to Chinese companies because of national security concerns. Huawei has denied that it poses such a threat.

    “Due to US regulations over the last two years, we are no longer trying to use the best components to make the best products,” Ren said. “Instead, we use scientific and rational methods to balance traffic throughout the system and use the right components to create high-quality products, which greatly improves profitability. I am. “

    Slump in global smartphone sales It hit Huawei’s business.

    The company reports that sales in the first half of 2021 were 320.4 billion yuan ($ 49.67 billion), down from 454 billion yuan in the same period last year. Earnings in the first half of this year were even lower than in the first half of 2019 and 2018 before the pandemic and US sanctions.

    The two largest business segments, consumer and carrier, saw a sharp year-on-year decline in the first half of 2021. A much smaller business, Huawei’s growth strategy is at the center, 6.6 billion yuan increased.

    Len continued to be keen on paying scientists and talked about compensation equivalent to a private amount to a professor at the prestigious Tsinghua University in China.

    “If the company doesn’t pay attention to basic science and research, has a close relationship with the world’s leading scientists, or hasn’t evaluated the people who have been involved in basic research in the last decade, then the theory, technology. Could not have accumulated a huge amount of science, and the engineering knowledge needed to overcome the difficulties posed by US restrictions and blocks, “he said.

    Read more about China from CNBC Pro

    Len’s comment comes when the central Chinese government is trying to solve the labor shortage in high-tech industries such as manufacturing. Beijing has launched an ambitious plan to build its own technology — Semiconductors and quantum computing — Next 10 years.

    “China is experiencing a bubble economy, and all the young elites are in a hurry to generate quick profits with relatively little investment,” Ren said.

    “China is still far behind in products such as machine tool, equipment and process technology, equipment and meters, materials and catalyst research. What methods can be used to carry out production experiments in such situations? Is this the difficulty we are currently facing. “

    — CNBC’s Arjun Kharpal contributed to this report.

    Huawei says it is hiring more scientists in the face of U.S. sanctions

    Source link Huawei says it is hiring more scientists in the face of U.S. sanctions

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