Between 2000 and 2008, during the eight years when the state decided to go to 3G, he was personally mentally painful and nearly collapsed when deciding on the wireless route. Because he unswervingly takes 3GPP, GSM, UMTs road.
Asked about the company's overall strategy of communicating with employees to overcome difficulties after it was listed as an American entity, he said that there was a "rotten aircraft" that had been damaged by the United States, and each of us had to work hard to fill the "holes". So employees know that everyone's responsibility is to fill the hole and survive.
Ren Zhengfei believes that,Huawei The ideal of a company's value system is to serve mankind, not just money, which is different from Wall Street. Second, there is no service for employees, which is also different from Europe.
The Attached Chief Executive is interviewed by BBC Story Workshop Documentary Film.
Nicola Eliot, BBC Documentary Producer: The BBC is recording the show today not only to understand what Huawei is in the current situation, but also to understand what kind of company Huawei is, how it has evolved and what the reasons for its success are. So, we'll keep pushing history forward. The first question, you as a PLA engineer, that year participated in the construction of Liaoyang chemical fiber plant, what working conditions at that time, what experience have you brought?
Ren Zhengfei: Liaoyang Chemical Fiber Factory is a key construction project determined by the state during the Chinese Cultural Revolution. It introduced a complete set of chemical fibre equipment from oil head to chemical tail from Debniz Spessim Company of France. At that time, China's economy was very difficult. The government hoped that every Chinese could wear a chemical fiber suit and introduced the equipment. The central leadership attached great importance to it. At that time, China was in a period of chaos, and the local engineering team was unwilling to undertake the project in such a hard area. The central government had to transfer the army to do the project. When the army entered this area, it was mainly because of the lack of technical talents. Those of us who had just left school for a short time became talents, which is better understood by those who do not understand.
Living conditions were very difficult at that time. First, the northeast is short of food, all year round is hybrid sorghum rice, at that time winter half a year to eat pickled cabbage and radish, the main problem is that there is no meat, very little oil, ordinary people have only three or two oil a month, we are a catty, the conditions are very difficult. Second, tens of thousands of troops suddenly entered the wilderness and did not have a house to live in, so they had to build some simple houses. At that time, it was not as easy as building a simple house now, it was difficult at that time, the foundation was not done very well in winter, the house settled and cracked, and the cold wind could go in. Life is very difficult, but our project is very advanced, the degree of automation is very high, which has formed "ice and fire double day", very advanced project, very difficult living conditions.
(164 words are omitted here)
2, Nicola Eliot:, did you develop an air pressure balance, and did you get the knowledge you learned when you were in Liaoyang, or did you get it from somewhere else?
Ren Zhengfei: This kind of equipment is available in France. We have experts who have seen it in France. He described to me what the instrument looks like. So I first derive the whole instrument structure from mathematics, including some partial differential equations. I once went to consult Professor Li Shijiu of Northeast University about the correctness of my mathematical deduction and the possibility of success. The math professor affirmed that he could succeed. I'll come back and continue to design the whole system. The main purpose of this instrument is to test the instruments imported from France. At that time, China did not have such instruments, so this equipment was made.
When the equipment was successful, China had just crushed the Gang of four and began to attach importance to science, technology and production practice. Personally, I think my invention is only a small invention, not much big, but because no one else invented it at that time, the state won my invention at that time as a great invention, giving the honorary title of great hero.
3. Nicola Eliot: Did your experience in Liaoyang prompt you to start Huawei when you were 44?
Ren Zhengfei: when I founded Huawei at the age of 44, I had no experience and was blindly launched. After we left the army, we entered the market economy, which was very unsuitable. There is a big difference between us and the retired soldiers in the West in entering the market economy. Because although the western army is not completely market economy, but the society is market economy, they will know what "market economy" is, so they have certain adaptability to retire from the army to the enterprise to work. We are completely unfit, because we come out of the planned economy, the army can not earn a penny, is honest. We don't understand why, after the market economy, the goods bought for ten yuan have to be sold for twelve yuan. It must have been a lie. Of course, at that time, we did not know that there were operating costs, financial costs, taxes and fees, and so on, so it was very unsuitable to come to the place. I don't even know what supermarket is.
If there's any experience before starting a business, it's age, which is more than the storms experienced by younger children in their twenties. (71 words are omitted here)
4. why did Nicola Eliot: decide to start Huawei because there are so many risks and you don't have the knowledge to start a business?
Ren Zhengfei: Actually, we have no way to go. Because I did not do well in my work at that time, others did not want me. Shenzhen Science and Technology Bureau said that you were engaged in scientific research, but now you can start scientific and technological enterprises. We thought it was possible to develop some technology, so we went this way. Today, it seems that at that time, it was too ignorant, because ignorance only embarked on this road, and then there was no retreat, and retreat can only rely on the development of labor force, because no capital is available, and all the costs of my transfer have been exhausted.
5. Nicola Eliot: has some reports that if you have been in the army, Huawei is linked to the Chinese army. Do you have anything to say about this?
Ren Zhengfei: Over the past 70 years, there have been more than 50 million veterans in China. I am one of them. The same is true for all veterans in the United States. After leaving the army, I had nothing to do with the army, because we were engaged in civilian business. There is no reason for such speculation from outside.
6, Nicola Eliot: you just mentioned the capital problem when you founded Huawei. If you fail to start a business, you will have no capital and can only start from scratch. How much did it cost to start Huawei? If the money doesn't come from the PLA, where does it come from?
Ren Zhengfei: Huawei's registered venture capital was 21,000 yuan. At that time, our family's transfer fee was only 3,000 yuan, so I found several people to raise funds. Later, when the company developed to a small scale, they had to withdraw their shares and ask the branch for a lot of money. They got a lot of compensation through legal proceedings. They all quit, and the company became my own company, and I began to gradually distribute shares to employees. At that time, the court decisions on withdrawal were all documented in the company. You can go and see these records. There is no country here for a penny, just a few people to raise money, I can not have 21,000 yuan so much money to start my own business.
7. Nicola Eliot: resold hundreds of switches in the Chinese market, but most of them did not survive. How could Huawei survive by reselling switches from Hong Kong companies? What's the secret?
Ren Zhengfei: Firstly, we have established "customer-centered" from the very beginning. We prefer employees to suffer a little more. We must safeguard the interests of customers, so that customers can basically accept us. At that time, there may be more than a few hundred companies. They could survive because the huge market in China was so short of supply that even backward things would be purchased. At that time, we went to act as an agent for the sale of Hongnian's switch in Hong Kong. At that time, it was relatively good in analog electronics technology. We also made great efforts to accumulate the original capital. Then, instead of spending on ourselves, we re-invest, re-establish service systems and improve customer interests. In 2000, I did not have my own house to live in. At that time, I rented a house of more than 30 square meters to live in. Imagine that I hadn't lived in a house more than a decade ago, and Forbes said I was a millionaire and couldn't understand.
Neither of my parents was taken good care of. My father bought expired drinks on the street and died of diarrhea. My mother was worried about me. There was a big political storm. Forbes said I was rich. My mother asked where the money came from. She was worried that she was killed by a car as she walked home from the vegetable market. At that stage of history, we put all the primitive accumulation into the future, which is different from other companies. When other companies make money, they spend or invest in other areas.
Secondly, we are very honest with our suppliers, and the money we sell is paid back to them in time. The suppliers believe that sometimes they will give priority to us. This solves the problem of no funds, buying before selling, and expands some possibilities for Huawei's development. In this respect, Hongnian Company of Hong Kong has given us a good deal of money. Growth is indispensable.
After that, Nicola Eliot: began to develop its own technology, which carries a lot of risks. Why did Huawei decide to take such a big risk?
Ren Zhengfei: When my life was frustrated, I was cheated by bad people when I worked in Shenzhen state-owned enterprises. Because I could not afford a lawyer to fight a lawsuit, I learned a lot of legal books by myself, including European and American laws and mainland laws. I was ready to be a lawyer to fight a lawsuit by myself. This experience has taught me two principles: market economy is a market economy with goods on one hand, customers on the other, trading on both sides, and law in the middle. I know it will never be possible to master customers, only goods. What should I do? We need to develop. In addition, our earliest agent of the switch is BH01, a small company in Zhuhai products, it sees that we sell well, will not supply us, just like the current U. S. physical list. Later, we were introduced that we turned to selling HAX machines from Hongnian Company in Hong Kong. When they sold well, they were not available, forcing us to make our own communications products. Under such subjective and objective conditions, we embarked on the road of independent research and development.
After Huawei's business improved, I also paid off some of my debts for the company I used to work for.
Nicola Eliot: If independent R&D was not successful at that time, what were the potential risks? What are the consequences?
Ren Zhengfei: because there was no way out at that time, we never thought about "what happens if we don't succeed in development," or do we believe that we will succeed in development. At that time, it was analog communication equipment, which was not very complicated, so we still have confidence. The first phase begins with the 40-door switch used in hotels and hotels. After the success of 40 switches, we are confident that we will develop 100 switches, and then 200 switches. It should be said that we are going high step by step, not making big products at once.
9. Nicola Eliot: At first, Huawei resells the switches of other companies, and then develops the switch products independently. Where does Huawei's knowledge of independent research and development of switch products come from?
Ren Zhengfei: at that time, all of us read a textbook from Nanjing Institute of posts and Telecommunications, written by Professor Chen Xisheng. We read textbooks to make switches.
10. Nicola Eliot: At that time, China's telecommunications market was dominated by Western companies'products. How did Huawei break through the market pattern at that time?
Ren Zhengfei: at that time, we did not have the possibility of competing with western companies at all. The most important thing was to start with the small switches used in hostels and hotels, and it was the analog switch that gradually expanded and accumulated for many years before we began to become digital switches.
11. Nicola Eliot: At that time, Huawei lost many opportunities because it did not choose to invest in CDMA technology. CDMA technology has become one of the mainstream technologies in the Chinese market. Would Huawei make a different choice if it turned around now? Will you invest in CDMA?
Ren Zhengfei: this is a period of history. Since 2000, China's Wireless Communication Standard (CDMA,GSM.) The choice is in contradiction. Because the state did not issue a wireless license to China Telecom at that time, they made the PHS technology eliminated in Japan into PHS in China. At that time, we judged that PHS might make a lot of money, but there was no prospect, so we didn't do it. We did it, but we didn't do the backward system of IS-95. What we did was 1X. But the Chinese market tender as long as IS-95, does not want 1X, so we lost the election, did not get the choice of the Chinese market. These two are setbacks for us.
From 2000 to 2008, when the government decided to go to 3G, during these eight years, when we decided on wireless routes, my personal spirit was very painful and nearly collapsed. Because I firmly take the road of 3GPP, GSM and UMTS, not those two roads. I am not afraid of the pressure from outside, how the pressure from outside, I am not afraid, or firmly go on. I'm afraid of pressure from inside. There are letters and reports from senior managers to me all the time. "You made a wrong decision and will ruin Huawei Company." In those eight years, I spent a lot of time. No one else was responsible for this decision, and I had to take responsibility for my own choices. In those eight years, when we saw other people making big money, we couldn't make money. We saw that we were more difficult than others. A lot of articles outside were satirical and sarcastic. What if I was really wrong? Eight years later, China finally issued a 3G license, which immediately released our energy. At that time, we did not feel that we had won, but that the pressure was relieved and our equipment was available.
At that time, when we had no chance in the Chinese market, we put a lot of energy into overseas markets. For many years, we could not see customers, let alone contracts, and could not earn money. It was the Chinese dummy down sweater at that time... When the fake goods were sold to Russia, the Russian Minister of Posts and Telecommunications said, "What high technology does China have?" Nothing but fake. We have our own products, but also to mix with Chinese counterfeiters, so that customers can identify with us, this period is very difficult. But if we do not open up overseas markets, we will face more difficult situations in China without market opportunities. At that time, I personally traveled in Africa and Latin America for many years, with very few family contacts and contacts. I regret this period of history, because the children are growing up, hoping that Dad with play games, hide-and-seek cats, I did not do. I came back from abroad, exhausted, and lay in bed. So I didn't communicate well with the children, but it was for survival and survival.
Around 2000, overseas people began to buy us a little equipment, give us a little contract, have the opportunity to reflect Huawei's service spirit, slowly customers will accept us. At that time, we could not speak of the word "good", and we could not reach the level of competition with western companies. Why can Africa accept us? Because of the war, Western companies have run out. Africa wants equipment, and we can sell it to Africa. Also because of plague, extreme environment. We can sell some products and accumulate some successful experience overseas. Today, when we promote cadres, we all require that we have worked in difficult areas such as Africa. We have used the criteria for the assessment of officers by the US army. We have "gone to the battlefield, fired guns, and been injured." to determine whether cadres are qualified for promotion, overseas success experience must be an indicator. Otherwise, overseas people will struggle hard and let high-quality cadres take away their official posts, and such a value evaluation system will not be able to do so. Although this cycle may not be the best use of outstanding talent, but built the first strong team. Therefore, today, our team is very strong, the United States such a strong blow, our company not only not collapse, but also high morale.
During the period when we lost the opportunity of China's market, we went overseas, but when we came back, China went to a new stage of development. We had the opportunity to transfer some excellent generals from abroad to "kill back the horse gun" and succeeded again in China.
In 1998, Huawei paid almost half of its full-year profits to hire Western consultants, Nicola Eliot: reported before. At that time, what advice were mainly sought from these companies? Why is it so important for Huawei to learn from the West to get these advice?
Ren Zhengfei: When I started my business, I was alone. Then I kept coming in. There were no rules at all. For example, if I say "how much salary do you get", I will decide. Of course, it will benefit some people and hurt others. With the growing size of the company, a lot of documents need to be drafted to regulate the company, but I do not have the ability to draft documents, I personally engaged in technical work in the army, did not engage in management work. But we have to move forward, so we have drafted a lot of documents, but feel that these documents are not standardized, which is not conducive to the growth of Huawei into a large company.
At that time, we thought Huawei should be able to become a big company, so we hired IBM, Accenture. Dozens of consultants have come to advise us. The consultant's fee is $680. at that time, the salary of our employees was only more than 5000 yuan per month, which is equivalent to the consultant's salary for an hour. But for tomorrow, we must learn from others and recognize their value. We sent a lot of people to study, and some of the people who studied at that time did not study hard. Some speculators thought they could do so. When they saw others get promoted in the market, they left in the middle of it. Therefore, there are a lot of things that have not been done completely to the end, which is a defect.
But there's a project to learn. When IBM consulted our finance and auditing, Meng Wanzhou was still a "turnip head". She worked as a project manager. After more than 20 years of contact with IBM and other consultants, she did a good job in finance, and surpassed the guidance of consultants, and her management level and standards were higher. Now Huawei's financial quality should be much higher than that of many Western companies. Now there are some big consulting companies and we say, "It's no good not to be a consultant for a penny." We refuse because we have to teach them, and we have to work hard.
We learn from western companies from beginning to end, and continue to optimize in the process of learning. When the United States hit us today, people saw that Huawei did not seem to have changed much. Why? Because a large number of systems have accepted this system, can understand their own, their own integration. It seems correct from today to learn a lot from the West.
13. Nicola Eliot: You just mentioned Huawei's development strategy in overseas markets. First of all, it started to develop its business in relatively underdeveloped regions, such as Africa and India. After success, why would you consider selling Huawei to Motorola in 2003?
Ren Zhengfei: because we predict that according to the situation of development at that time, we will reach the advanced level of the world, and sooner or later we will confront the United States. At that time, the United States will certainly hit us. Hope to sell to Motorola, just to wear an American "cowboy hat," the company is still tens of thousands of Chinese working, but also reflects the victory of the Chinese. Capital is an American company and labor is Chinese, which is conducive to expanding in the international market. In this case, sold to Motorola, the agreed price was $10 billion, and all contracts have been signed. At that time, there were two plans. First, some of us wanted to be tractors in the future. at that time, the Chinese tractor factory was in a collapse. We wanted to buy all the tractor factories such as Luoyang. At that time, the tractors in China were $1000 each, but there was a problem, the total oil leakage and the engine was not resistant to high temperature. We can solve this problem by learning from IBM the IPD method, and then raise the tractor price to $2000. We can't subvert the car industry, but we can create the world's largest tractor kingdom. Second, the vast majority of people continue to follow the path of communications, wearing Motorola's hat, can hit the world. It's all glorious. However, it is a pity that this matter has not been successful.
We are right to predict that "sooner or later we will confront the United States". Now we are confronted. The list of entities prohibits us from selling anything to us. Even McDonald's in Mexico does not sell anything to us. It's extreme. Neither can we use our own American company's stuff, nor can our employees speak to our American company's employees, otherwise it violates the list of American entities. This kind of extreme situation, which we judged would appear in those days, really appears now, we have prevention, so there is no sense of panic, can deal with the past.
In the early days of its expansion into the European market, Nicola Eliot: Huawei finally broke through the European market through extremely low costs, despite difficulties in expanding the market. Some people say that Huawei's costs and prices are so low that it must be because it has the support of the Chinese government. Could you give me a rough idea of this?
Ren Zhengfei: Social understanding is totally wrong. We sell not only at a very low price, but also at a high price. We can send you electronic copies of financial statements of ten or twenty years. Look at our financial statements, we make a lot of money. Otherwise, how could such a large company accumulate?
The breakthrough in the European market benefited from a mathematician who was in his twenties, and he turned on the 2G and 3G algorithms, and then 2G and 3G could synthesize a device that at least doubled in volume, doubled in weight and doubled in cost. The biggest problem in Europe is that there are no towers to install too heavy equipment. There are so many old houses in Europe that they can only be installed on the roof. The equipment must be light. After we invented SingleRAN, distributed base stations were all of a sudden popular in Europe, and Europe bought our products. Costs will not be halved in mathematical terms, or at least 30 to 40 percent, and the profits will be very good. Our employees will be paid much more than Western companies, otherwise there would not be so many mathematicians and scientists. Good people come to our company. So Huawei leads the world in wireless, the breakthrough is a mathematical algorithm, the algorithm is a breakthrough by a young Russian youth, and now he is Huawei's Fellow.. After his breakthrough, we experimented in Shanghai and thought it was feasible, so we used this algorithm to decompose a lot of things.
Why does this algorithm make our company so powerful? At that time, there were three types of 3G devices and 4G devices: CDMA, UMTS and TD-SCDMA in China. With this algorithm, we only produced one device, which could adapt to three kinds of systems, so that our production cost dropped dramatically. Then the vertical system is multi-frequency, why multi-frequency? Operators have existed for seventy or eighty years. For a period of time, they are divided into one wireless frequency. Most operators have more than a dozen frequencies, so they need more than a dozen antennas to correspond to each other in order to receive all wireless signals. Because we have this algorithm, we can turn on multi-frequency, and one antenna can receive all frequencies. You can visit the antenna. Our antenna is super advanced. How much will the cost decrease when a dozen antennas become one? Profit earned too much. This algorithm adapts our base station to multi-mode and multi-frequency, high quality and low cost.
The financial statements can not be too good, too good is also disadvantageous. Only by investing more in R & D strategies can profits be consumed, with at least $150 to $20 billion a year, including increased support for universities. In this way, we can invest the money in the future, not all the money to the employees, so that the employees become fat, and then do not work; nor to shareholders, people lazy. I say it every time. "AppleIs our teacher, Apple will always sell high prices, in order to let the low-cost company survive. If we sell low prices, there will be no other grass in the world to survive, so we have won the European market not by selling low prices, but by technological innovation and technological innovation.
15. Nicola Eliot: Now everyone knows about Huawei's strong investment in R&D. Huawei also has its overseas R&D centers, such as India. What is Huawei's overall R&D layout strategy outside China?
Ren Zhengfei: wherever we have talent, we set up R & D centers where they can work for Huawei at their own door, rather than wanting them all to come to China.
16. Nicola Eliot: Before and after 2011-2012, Huawei has made a relatively large adjustment in its business and its business scope has changed. Huawei's core business is to connect people, but the devices connected are invisible to ordinary consumers. Starting from 2011 and 2012, to build consumer-oriented brand, why do we need to make such business adjustments?
Ren Zhengfei: the most important thing is to simplify the management, do not be related to the business together, otherwise they will become very troublesome horizontal connection. Therefore, we cut the business into "trees", and the "roots" of "trees" in the soil are still connected, such as financial systems, human resources systems, assessment systems, but the business between "trees" and "trees" is unrelated and management is simplified.
17. Nicola Eliot: Huawei is facing a lot of pressure from the United States recently. The United States says Huawei is a security threat. Can you talk about Huawei's views on security?
Ren Zhengfei: I think network security will be a more and more important issue in human society. Because in the past, communication was a hard connection, there was no security problem if the outside could not come in; when the communication network developed into the IP system, the attack port of IP increased; now, as soon as the cloud opens, there are mouths everywhere, and the attack is even more severe.
The establishment of GDP R standards and network security standards in Europe is very correct. Every company strives to maintain network security and user privacy protection. But it's very difficult to move forward. After all, it's a new thing. For example, if a dam is built, the flood will pass before it is built. How to establish a network security and privacy protection system under the rapid growth of information is a challenge for equipment manufacturers, operators and the whole society.
Nicola Eliot: Could you share how the pressure from the US has affected Huawei's current operations?
Ren Zhengfei: The list of entities in the United States has little impact on Huawei's business operations. Because very sophisticated equipment (such as 5G) can be completely independent of the United States, the United States is still relatively backward in the field of 5G. From chips to systems, we can absolutely afford it ourselves. In terms of network connection equipment, including transmission, access network and core network, we have been in the leading position in the world for a long time, and basically will not rely on the United States. On the terminal side, we will have some ecological problems. We haven't fully kept up with them, which will have some impact, but it will not be very big and will not pose a serious death threat.
In 19, Nicola Eliot: specifically talked about Google, and Google has not yet allowed Huawei to continue to use the Android platform. Can you give me an update on the latest developments in Huawei's new operating system?
Ren Zhengfei: As mentioned before, Hongmeng Operating System is characterized by low latency. Low latency is mainly used in industrial control, automatic control, automatic driving, vehicle networking and other systems. Perhaps this system is the first to be used in watches and 8K intelligence.televisionIndustrial control and use.
As we all know, 5G is actually a "pediatric" product, and 5G is the support system of artificial intelligence because it has the advantage of low delay. And the uplink bandwidth of 5G is so wide that it is suitable for companies to send data to the cloud. The following 4G is people-to-people communication, now 5G can also complete things and things, business-to-business communication, including control, a lot of applicable to this system. We have yet to consider how the Hong Meng system can be transferred to.Mobile phoneCome up, even if you want to turn around, it will take a few years to establish a reasonable ecology, can not do it in a short time, but also need a process.
Today, the United States has failed in the telecommunications industry. Don't blame Huawei's rise. It is the United States that has gone wrong.In the 1990s, when wireless communications rose in the world, the United States was the greatest technological power in the world. It imposed CDMA and WiMAX, just as the United States today mobilized people around the world not to use Huawei 5G, and mobilized other countries everywhere to use CDMA and WiMAX.. The world trend 3GPP is the right way, the United States has gone the wrong way, resulting in the decline of the American communications industry. Second, on the CPU issue, the United States X86 leads the world, it has a great window of opportunity, it should be more open to cooperation, we can add our artificial intelligence, help it occupy more data centers. But I didn't expect there were a few other CPU groups in the world. Huawei today officially unveiled the Kunpeng CPU ecosystem, forcing the United States to compete.
In the 5G era, whether to establish overspeed connection, future artificial intelligence or von Neiman computer architecture: supercomputer, super-large-scale storage, overspeed connection. The United States has supercomputers and super-large-scale storage. The United States could have taken the lead in artificial intelligence in the world, but if it had not been overspeed, it would have lagged behind in artificial intelligence. 5G is just one aspect, and optical fiber is on the other.
China also has super-computing centers and super-large storage capacity. If China uses 5G and optical systems as interconnections on a large scale, China may come to the front again in artificial intelligence. Therefore, 5G is only a "pediatric" product, and the United States overlooks it too much, which may be its weakness in decision-making. In my opinion, the biggest window of opportunity for the future of the whole society is artificial intelligence.
20. How did Nicola Eliot: communicate with your employees about the overall strategy to overcome difficulties after the company was added to the list of entities in the United States? What did you say to them?
Ren Zhengfei: Let's say that there is a "rotten plane" that has been hit by the United States with a thousand holes. Everyone of us should try to mend the holes. So employees know that everyone's responsibility is to fill the hole and survive.
21. Nicola Eliot: heard that Huawei had built a base station on Mount Everest, and you personally went to the base camp of Mount Everest, 5200 meters above sea level. Why should Huawei build a network in such a dangerous area, where no one wants to go?
Ren Zhengfei: Customers have such requirements, we have to fulfil the commitment to customer requirements. The purpose of China's base station establishment at the 6500-meter peak is to live broadcast the process of the Beijing Olympic Games. There must be a broadband base station. We built a base station at the 6500-meter peak. Nepal, too, needs to build a base station there. There is a Metto County in China, which has not had communication for decades since liberation. The country has also invested in satellite communication, which is unsuccessful because of the continuous earthquakes and landslides in this county. As soon as the roads have been repaired, they will be interrupted immediately, which is very difficult. At that time, we used a very backward equipment, CDMA 450. In the process of installing the equipment, a base station was built by more than 200 migrant workers, including Huawei employees, who climbed four snow mountains with complete sets of equipment and lived in the snow for four nights. Only then did we install the first small base station in Metou County, so that the people of Metou County could make telephone calls. Can such a big thing make money? You can't make money.
The company's value system ideal is to serve humanity, not just money, which is different from Wall Street. Second, we do not serve our employees, which is different from Europe. All the money earned in Europe is distributed to everyone. Everyone is very happy and drinks in the street.coffeeThe country will not have a strong force for development. We make money, not to shareholders, not to employees, but to customers. On the one hand, we invest in future scientific research, on the other hand, we implement the spirit of customer service to the end.
Our total sales in Africa are less than half of those in Guangdong, but the income of African employees is three times that of Guangdong employees. There is not much sales and a lot of money. How can we make money?. But we should encourage people to go to the front line. First, if we do not work hard, we will not be able to promote you in the future; second, we should give you more money. This embodies the values of serving all mankind.
As you can see today, this kind of mandatory pressure on operators in the United States is more severe than that on us, but operators are still buying our equipment, which is the customer's trust in us. Including the British Parliament in the Teresa era through the "core network does not buy Huawei, other equipment should be open to purchase", has been a great support for us. Now the British Parliament and the Intelligence and Security Committee are discussing further that "if we don't buy Huawei's core technology, the UK should lag behind". Under such pressure from the United States, the United Kingdom and the United States have such a good alliance and need to buy Huawei's equipment, which shows that we have earned valuable returns to our customers over the years.
Nicola Eliot: Huawei's partnership with the UK dates back many years, as early as BT, Vodafone and others to certify Huawei's suppliers. Could you tell me more about Huawei's relationship with the UK?
Ren Zhengfei: We have great trust in the British government, because the UK is a country ruled by law and is very calm in dealing with many decision-making issues. Although we have received a lot of criticism in the UK, we always believe that the criticism of the UK cherishes us. No company can make any equipment seamless. Errors are corrected in common discoveries, and we strive to correct these problems.
As a result, we have made support for strategic investment in the UK. First of all, we support ARM. When I met with the European Union a decade or two ago, the European Union thought that Europe's information industry was lagging behind and that the United States had taken away all the opportunities. I said, we can still work together. More than a decade ago, we supported the development of ARM,ARM today, sold for $32 billion, and increased after the money, and Europe had CPU, which is our contribution in Europe. Second, we bought more than 500 acres of land in the UK, ready to build a light chip factory, which will be exported to the world in the future. This is because we trust Britain, and the number of British technicians is very large. We also have a breakthrough in the field of light, now we can make 800G optical chips, the world can not do it, the United States is still far away. This is also our contribution to Europe. Third, microwave, we are also leading the world, microwave factory to be located in Italy.
Therefore, Huawei continues to make contributions in Europe, and will make greater contributions in Europe in the future, because we will strategically invest in Europe as a second home. I'm talking about Europe, including Britain, which is currently investing heavily in these countries.
23, Nicola Eliot: just mentioned "the 5G era, the connection is everywhere." can you share with us what will really happen in the 5G era? What will the world be like then?
Ren Zhengfei: 5G itself is a tool. Like a screwdriver, it does not produce value in itself, but a screwdriver can make a car by screwing the screw properly. Therefore, the value of 5G itself is to support the development of artificial intelligence.
Artificial intelligence was put forward by the British scientist Turing in the 1940s. In the mid-1940s, Turing used this method to discover the German telegram password, and Britain was fully aware of the German operation, but it could not disclose the discovery password, so when German fighter planes bombed British factories and industrial bases, Winston was patient and would rather let it blow up than intercept these planes. Otherwise, you can't cover up the Normandy landing. Turing put forward artificial intelligence in the 1940s, and then the world mentioned artificial intelligence many times. Why didn't artificial intelligence come to the desktop until today? Artificial intelligence needs super computing, super large capacity data storage and overspeed connection support in order to achieve. Now this era has emerged, 5G itself will not produce much mutation, but to support the emergence of artificial intelligence in human society. Artificial intelligence should be seen positively, it will create more wealth for society. For example, a tractor can cultivated land 24 hours a day. If you don't need people to care about it, you can grow a little more grain. For some difficult areas, people don't want to go, artificial intelligence tractors can go to cultivated land.
24. Nicola Eliot: What is Huawei's vision? In Huawei's eyes, what is the world like five to ten years later?
Ren Zhengfei: not only can I not predict five to ten years, I can't even see it clearly for three years, because the world is developing too fast. It was difficult for us to make phone calls a few years ago, and all of a sudden, Jobs' Apple phone pushed the mobile Internet forward. How did we know there was a mobile Internet a few years ago? Therefore, it is impossible for us to predict what will happen in three or five years' time, just wobble like a cobra, see the world change, keep following and become faster, and we will not be thrown away by the times.
Nicola Eliot: Shorten the time a little. Considering what Huawei is doing now, what kind of goals does Huawei want to achieve in the near future?
Ren Zhengfei: Huawei mainly makes the human network faster and lower delay, so that people can enjoy the value of information services. Because the bandwidth of 5G is nearly 10 times 100 times of that of 4G, and the volume is 70% smaller than 4G, the energy consumption per bit is reduced to only 1 × 10. 5G, and the information service enjoyed by people in the era of 1 / 10. 5G is wider, faster, better and cheaper. Of course, not yet, after all 5G, the price of information will come down, so that rural children, poor children can see the world online, can improve their quality, their ability to create wealth for mankind in the future will be enhanced.
Nicola Eliot: Speaking of children, just yesterday your colleagues gave me some amazing pictures of you and your family. I grew up in the UK and had no idea what it was like to grow up in China. Can you tell me about your growing up experience in China in that time?
Ren Zhengfei: I grew up in a very small township, which is very poor. Our family is better off because both parents are teachers. The sign of better living conditions is that our cooking can be salted, which is the local understanding of the rich. At that time, it was rock salt, not pink salt. The poor people tied the salt with a rope. When the dish was cooked, put the salt in the side of the pot and rinse it with a little taste. This was what I saw with my own eyes when I was a child. There are also people who can't even eat salt. That place is called "dry". Extreme poverty means extreme poverty. When we were kids, we were in that environment. We had no idea what the world was like, we didn't know Britain at all, and we had no idea what the world was like.BreadThe problem of inexhaustible food, at that time we mainly had nothing to eat. At that time, we did not know the world, but also the cities of China, because we were in the countryside. If rural children can broaden their horizons through the Internet now, this should be of great help to China's future progress.
26. Nicola Eliot: How did your idea of continuing to survive when you were a child influence Huawei's idea of success through survival and struggle?
Ren Zhengfei: there is no correlation at all. Although I grew up in a ditch, but my personal curiosity is still very strong, can through comic books, why 100, 000. Let's take a look at the world; after I went to college, I borrowed books from the library and expanded my horizons. Therefore, the vision is expanding, is their own inner curiosity and promote the company forward. The idea of Huawei's low center of gravity development is that we think that the pace of development should be stable, go too fast, it is easy to break, fracture is a great disaster for an enterprise. We ask for stability. We can only use the phrase "live" as a metaphor for being stable. Don't be bold. It has nothing to do with my childhood.