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Ren Zhengfei's interview with CNBC: America can't kill us anyway

via:CnBeta     time:2019/6/25 18:40:42     readed:547

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Ren Zhengfei: First,HUAWEIThere is no sales in the United States, so the trade issue between China and the United States has nothing to do with Huawei. Secondly, China and the United States are two very large "balls". We are only a small sesame in the middle, which can not play any mitigating role. In my opinion, the United States is a country ruled by law. The problems of Huawei and the United States still need to be solved by law. We still believe in the final judgment of the court.

2. Reporter: Huawei may not have much business in the United States. As you said, Huawei does not want to be stirred up in the middle of the trade war. But as you said before, Huawei is caught in the middle. Do you have any expectation that Huawei will become a topic of negotiation in the meeting between President Xi Jinping and President Trump at the G20 summit? Do you have such expectations?

Ren Zhengfei: I think maybe we are not so important. Two great people talk about us as a conversation over tea? I don't think it's realistic.

Reporter: But now we look at the actual situation, it seems that this is not the case. President Trump spent a lot of time talking about Huawei, and many other officials in the United States also spent a lot of time talking about Huawei.

Ren Zhengfei: Because they are healthy and energetic. They should have a lot of things to worry about, they come to worry for us, no effort, which I am grateful for. They hold us high. We don't have such a high position.

Reporter: You mentioned that Huawei may not be worth so much attention, but if you look at many American politicians, including President Trump, they really spend a lot of time talking about Huawei.

Ren Zhengfei: Maybe it's because ofYou can't kill us, you can't kill us anyway, maybe you won't die in the future.Are they tired if they care so much for years? We communicate with the U.S. government through various channels. Because the United States is a country ruled by law, we communicate in court, that is, with the United States government. The United States Government provides evidence to the court, and we also provide evidence to the court, so that the court can judge whether we are wrong, or right, or how many mistakes, and make a decision, which is the most important issue. As a bargaining chip, I don't think it's worth it and we don't want to.

3. Reporter: Although Huawei is unwilling to be a bargaining chip, it can't change this fact, because Trump said that Huawei should be a topic in the Sino-US negotiations, and the current situation has affected Huawei's business. As you said in the interview before, Huawei's income will be reduced by 30 billion US dollars due to the current situation of Huawei in the United States.

Ren Zhengfei: 30 billion dollars is a very small thing for us. Our income this year will exceed 100 billion dollars, which has not changed our basic situation. We mainly cut down some marginalized products, so the U.S. sanctions will not have much impact on us.

Reporter: But I think a lot of people will say that $30 billion should still have a big impact. After all, it accounted for about a third of Huawei's income last year. It should also have an impact on Huawei's employees and shareholders. Isn't that true?

Ren Zhengfei: No. Because our plan for this year is about $135 billion, affecting about $30 billion in revenue, and we still have about $100 billion. At present, our sales revenue is still growing. By the end of May, it has increased by more than 20%. We predict that the future may decline, but there is no downward momentum. Until yesterday's report, it has not declined and is still rising. Therefore, we are not sure what will happen at the end of the year. But I think the decline of $30 billion is a very small thing for us. We can bear it because we are not listed companies. We don't pay much attention to this problem. We attach great importance to the true quality of business.

4. Reporter: Since you just talked about the quality of business growth, let's ask. We also see that in Huawei's business as a whole, consumer business intelligenceMobile phoneIt's the fastest growing business. As you mentioned in your previous interview, smartphone shipments have dropped by 40%. If China-US relations have hit Huawei's fastest growing business, how can Huawei's whole big business continue to grow?

Ren Zhengfei: Terminals have not declined in the Chinese market, but they have declined by 40% at the peak of overseas market. But they are now rising. The scale of decline abroad is less than 20%, and they are also rising rapidly. Therefore, overall, the whole year-round decline of terminal business will not be so great.

The company's business may fall from its planned revenue of $135 billion in 2019 to about $100 billion, the same as in 2018. But on the contrary, profits have risen. The company's profits are growing faster than we expected. I think that the rapid increase in profits means that we should increase investment in strategy. So, this financial report will be over in a few minutes, because it's much better than I thought, so why report?

5. Reporter: You also mentioned that profit is not the most important, but we know that many Huawei employees are also shareholders of Huawei. They should enjoy Huawei's dividend. This dividend comes from Huawei's profit. What do you think Huawei employees think now? Have you ever communicated with them?

Ren Zhengfei: The idea of Huawei employees is to be more energetic and harder. We must win. We have the ability to win this sanction. Therefore, everyone is full of confidence. If you have the chance, you can talk to our staff.

Reporter: Do you mean that Huawei employees don't care about Huawei's declining profits, which leads to their declining wages?

Ren Zhengfei: First of all, wages will not decline. We have enough pay capacity. We are also changing the incentive structure. Many people who perform well at critical moments are promoted and paid more. Long-term earnings depend on the year-end report, which may be a little lower than the plan at the beginning of the year. But seeing that it is much higher than my psychological expectations, the profit situation is still very good, my heart is solid. I won't let my finances report to me anymore. I'm concerned about some technical developments.

6. Reporter: How do you describe Huawei's relationship with Google? If Huawei can't get access to Google's operating system, how can it continue to push its business forward?

Ren Zhengfei: Google is a very good company and we respect it very much. We and Google are always on the same line of interest. If we don't load the Google system, Google may lose 700-800 million users in the future. Because we don't use the system every year for 200-300 million new users, the loss is huge. Our sales revenue will also decline in the short term, and we will bear the loss. So it's a matter of common interest, and we're not going to replace Google's system at will. But if we really get to this point, we also have our own system to replace, which will restore growth.

Reporter: Will Huawei's customers accept it? We see that in the Philippines, Huawei has already said that if Huawei does not use Google and Facebook for its mobile phones in the future, their applications can be fully refunded, but what if there are more markets like the Philippines?

Ren Zhengfei: Now there is some influence in the international market, but the impact is not too great. Because there are many new functions in our mobile phone that are independent of Google system, such as taking photos. The most important thing Google offers us is an ecosystem, which is doing very well.

Reporter: Now we have seen that customers in the market have made it clear that if Huawei's mobile phones do not use Android operating system, they do not want to use Huawei's products.

Ren Zhengfei: The United States is the most powerful country in the world. The U.S. government has suppressed us all over the world. But now there are more and more customers who buy our products. This shows that the confidence of customers is still greater than that of the U.S. government. Therefore, it does not have a great impact on us, as can be seen from the statistical reports of our own systems, there is not too much pressure.

Reporter: You said that the impact of the current situation on Huawei will not deteriorate further. Where does your confidence come from?

Ren Zhengfei: Now is the worst time, the impact will be more and more mitigated in the future. We have more than 80,000 R&D personnel and spend 15-20 billion US dollars on R&D every year. Can't we solve our own survival and development problems? This is the basis of our confidence.

Reporter: How can you ensure that consumers will want to use Huawei's own operating system instead of Google's Android operating system? What happens if Google stops giving its operating system to Huawei's mobile phone in August?

Ren Zhengfei: I don't think anything will happen. It's just that some people don't choose us, but still others will choose us.

7. Reporter: Now it seems that one of Huawei's strategies in the United States is to use its patent capabilities. But we also see that US Senator Marco Rubio wants to stop the implementation of this strategy through legislation. Do you think Huawei's ability to use patents will be affected in the future?

Ren Zhengfei: The United States is a country ruled by law and has the most patents. If his proposal can be passed by the U.S. Congress, will the image of the country governed by law be affected? Looking at the comments of 7.7 billion people, I don't think so.

8. Reporter: We know that you personally have a lot of admiration for the United States. You have said many times in the past that you are also a student of history. So where does your trust in the United States come from? What makes you so confident that the United States will deal fairly and fairly with the current situation?

Ren Zhengfei: More than 200 years ago, the United States was still a barren land. Why did the United States become the most powerful country in the world? Because of its openness, the world's outstanding talents are willing to go to the United States. The legal system, innovation mechanism and property protection system of the United States are all perfect, which contributed to the rise of the United States. So we have to learn from America to make ourselves rise.

The long history of the United States is very long. Some of the things that have happened now are just a short episode. They do not represent the whole history of the United States. So our respect for the United States will not change because we have suffered a setback. Like when we were young, Mom and Dad spanked our butts, but we don't hate Mom and Dad. Why? We spent decades with Mom and Dad. He spanked us for more than a dozen seconds. He couldn't break the family relationship for more than a dozen seconds. So, the current US government has cracked down on us, and the next president doesn't know what to think.

9. Reporter: As you said before, there may be a feeling of pride and complacency after achieving the first goal. The United States is now the world's largest country, do you think the United States will produce this kind of pride and complacency?

Ren Zhengfei: It's possible. If it is not proud and complacent, how can it lag behind?

10. Reporter: You just used a metaphor to describe Huawei and the situation in the United States as parents spanking their children. Do you have such worries that the children were beaten too hard? Do you worry about Huawei's survival?

Ren Zhengfei: No. Because the impact of the U.S. list of entities on us is to weaken some marginalized products. We may cut and close some marginalized businesses, but it will not have any impact on our leading products in the world.

11. Reporter: As you said before, the pain caused by the U.S. incident will end in 2021 and Huawei will revive in 2021. Is that your judgment on the timing of U.S. sanctions against Huawei? Do you think sanctions will stop at that time?

Ren Zhengfei: We describe ourselves as a "rotten airplane" with holes everywhere, but the engine and fuel tank of this airplane are still good. So as we fly, we mend the hole. If the hole is mended, our plane will fly as usual. Not that the United States lifted sanctions against us, but that we repaired our planes ourselves, so our planes could continue to fly.

Reporter: What does Huawei do? I know Huawei is developing its own chips and ultimately achieving its goal of not relying on American suppliers. How is Huawei going to repair this broken plane?

Ren Zhengfei: Ready at any time and anywhere, we do not want to die, we must correct our problems and shortcomings. Let's see which hole in the plane is the largest. We need to mend this hole first. After the big hole is filled, we can fill the small hole. When the hole is filled, we can fly freely.

12. Reporter: Two years later, will Huawei buy the same number of components from American suppliers as it does today?

Ren Zhengfei: Maybe more. Because American suppliers have contributed to Huawei over the years. When American companies can sell us things, if we don't buy them, we have no conscience. We must buy their things. When the United States refuses to sell us anything, I can't blame it. We hope to continue to buy their goods. We still place orders for them now, but they have to go to Washington to get approval. If they can be sold to us, we still buy them. If Washington does not approve, we have to think of some ways.

Reporter: Can Huawei find other ways? Are you preparing for these areas? What exactly is the preparation?

Ren Zhengfei: Yes. Specifically, every hole needs to be repaired. Now there are hundreds of holes. Every hole needs to be repaired so that the plane can continue to fly back. Let's show you a picture. Like this rotten plane, we were beaten through a thousand holes. It's impossible for me to explain systematically how we can fix it. But if you're interested, you can talk to our grass-roots staff and spend a little more time, they will tell you how to fix it. Because I'm not a repairman. I welcome you to come back and interview us in two years to see if we are better off than we are today.

Reporter: I'm looking forward to seeing it again, but I haven't got the answer I just wanted, which is Huawei's strategic plan or idea for the current situation. For example, when U.S. suppliers are out of supply, Huawei turns to other non-U.S. suppliers, or does Huawei further increase the proportion of self-research and self-owned components?

Ren Zhengfei: Both ways are possible. But the most important thing is to rely on oneself and improve one's ability.

13. Reporter: Do you now hope that the trade dialogue between China and the United States can be resolved?

Ren Zhengfei: Because Huawei sells almost nothing in the United States, we have nothing to do with Sino-US trade. We don't know what to say between China and the United States on such a big business. We are concerned about our own little things. We hope that the dialogue will not mention us, and we will not be worthy of their dialogue.

Reporter: Have you communicated with President Trump or any American official?

Ren Zhengfei: We communicate with the U. S. government through the New York East District Court and the Texas Court. It is better to solve the problem through the court.

Reporter: Let's imagine that if President Trump called you personally, would you like to answer that call?

Ren Zhengfei: Of course, I'd like to take this call. We can communicate and cooperate together for a win-win situation. Because the information society is very big, we work together to build the information society, each of us contributes his or her own efforts. Huawei has only made a little progress in a narrow area; in the other broad areas, the United States is the most powerful. So we all work together to build an information society. That's what I want to express.

Reporter: In view of Huawei's national security concerns, what information would you tell President Trump?

Ren Zhengfei: I will tell him that the thickness of the atmosphere is only over 1000 kilometers, and the cloud thickness of the information society will not be less than several thousand kilometers in the future. In such a huge future market, there will be a lot of opportunities, not zero-sum games, but to build such a large information society together. Huawei has only taken a slightly faster step in the field of connectivity; the United States has a broad and powerful force that can take a larger share of the cloud.

14. Reporter: Have you communicated with the President of China or other high-level government officials? On Huawei's role in trade negotiations and the various blow to Huawei's business.

Ren Zhengfei: How could I have the opportunity to meet them and talk about such specific issues? Huawei's problem is only a small one on the Chinese desktop; it's not big enough on the American desktop, so it's not worth discussing. We have the ability to solve it ourselves. We still believe in the laws of the United States and solve the relationship between Huawei and the United States through laws.

Reporter: Huawei is now a company with 180,000 employees. It is one of the largest companies in China and even in the world. Why would you say that communicating with Chinese government officials is a strange thing? After all, Huawei is an important company not only for China, but also for the whole world.

Ren Zhengfei: We are fully confident and capable of solving this problem. Why should we turn to others? The U.S. Sanctions List has been out for some time, but the company has not changed. If you visit the company, you can see that the mood of employees is not affected, and they are still working and producing normally. In particular, we need to look at our production line. The flow of water on the production line is still noisy. So we don't need to ask for help.

Reporter: I am not saying that you are going to seek help from the Chinese government, but that you are communicating with officials of the Chinese government. Because Huawei's problems will also affect China's economic development, which may not have an impact now, but if Huawei's business continues to shrink, it will have an impact. After all, Huawei's size has exceeded the total of Alibaba and Tencent.

Ren Zhengfei: The main reason is that we have no pressure. We think this attack is a test for us. If we can "get out of the womb" in this fiery fire, we will be stronger. There are two sentences in China: "Bath fire rebirth, Phoenix Nirvana", "The unbearable bird is Phoenix". The fire burns us, we try to overcome it ourselves, then we will be strong. And we also know which employee is the best, he should be promoted faster; which employee is backward, they can leave. In this way, our team will be stronger and more orderly in three or five years. At that time, we may get out of the predicament and have the basis for great strides in development.

Reporter: You said just now that Huawei does not want to communicate with the Chinese government about Huawei's situation, right?

Ren Zhengfei: Yes. If there are two children in a family, one child is the favorite of parents, and generally has no future; the other child, who is not cared about by parents, is outstanding. Why? The doting and patronage of his parents deprived him of the ability to make progress.

Our company has been walking by itself for 30 years, so we are all iron and steel. We can't crush or knock down. Now we have to climb up and move forward on our own strength. We believe we can survive. So let's use a "rotten plane" as a metaphor. We've got a thousand holes in the hole now. Brothers, come and mend the hole quickly. Who can fill the hole? I don't know, because 180,000 people are mending holes.

Reporter: If Huawei is the child, then the Chinese government is the parents, so it is difficult for me to understand that this child will not communicate with parents. Because American companies communicate regularly with the legislature.

Ren Zhengfei: American enterprises should abide by the law. It is normal for them to communicate with the government. But in the matter of Huawei's relations with the United States, we can overcome the difficulties we face without asking for help.

15. Reporter: Now the export ban against Huawei has affected the business of American companies cooperating with Huawei. We see that the impact has been reflected in these companies'expectations of revenue and profits for the next year. Do these American companies that work with Huawei represent Huawei to communicate with government officials in the United States? Have they tried to push for the lifting of export bans against Huawei or to get exemptions?

Ren Zhengfei: Can they lift the ban in the United States? I don't know if they can lift the ban. So it's painful for both sides to hit us. Our sales revenue will decline, and so will their sales revenue. They are listed companies, with a greater impact; we are not listed, and do not have to bear the responsibility of falling share prices, which is the advantage of our not listing.

Reporter: Did you or other Huawei executives communicate with the senior management of Huawei's American suppliers?

Ren Zhengfei: Our entire senior management is relatively unified in their ideological understanding. The American government's attack on us has not resulted in the ideological split of our senior management. We should actively communicate with American suppliers, request delivery and continue to place orders. We can't stop sending orders to people because of the restriction of the United States. In case of lifting the ban, we don't order. How can they deliver the goods? So our request for delivery is still there. As for non-delivery, it's another problem. Let's try again.

We still respect American companies and care for them. They helped us, and now they are suffering because they are with us. But what can I do? That's what the President of the United States is going to do, and I'm not in a position to change that.

Reporter: Do these American companies represent Huawei to promote these issues?

Ren Zhengfei: I don't know.

16. Reporter: Do you think China or the United States may lose more in the trade war?

Ren Zhengfei: The trade war has nothing to do with me. How can I know whether it was the United States or China that lost? Because Huawei doesn't sell in the United States, it doesn't matter to us that the United States imposes tariffs. We are not involved in anything, nor do I care about the trade war between China and the United States.

Reporter: You are the CEO of a global company. Your company has business all over the world. Don't you care about the outcome of the trade war?

Ren Zhengfei: No attention.

17. Reporter: Are you concerned about Huawei's ability to do business in the United States? On the one hand, American companies like Google, Facebook and Twitter have been banned in China. On the other hand, is Huawei actively seeking to enter the American market?

Ren Zhengfei: No. I don't think it will be possible for us to do business in the United States for quite a long time, so I don't care if the United States will let us in. Even if the United States is open to us to do business, we are not necessarily able to do it, because it takes a long time to build a system.

The United States prohibits us from entering the U.S. market and China prohibits other companies. This is a separate act of sovereign states, which has nothing to do with Huawei.

Reporter: Huawei did not actively promote, to obtain, at least to strive for access to the U. S. market?

Ren Zhengfei: No promotion, no waste of energy.

Reporter: Now you are here to talk to me, and Huawei also employs a lot of lobbyists. Your executives are also regularly communicating with the American media. Why is that? If Huawei itself does not want to enter the U.S. market, why would it take so much trouble?

Ren Zhengfei: We invest media resources not to enter the American market, but to eliminate misunderstandings. Because the U.S. government is lobbying not only in the United States, but around the world. Pompeo flies here for meetings and there for meetings. Trump goes to some countries to talk about problems. One of the three topics is Huawei. So we have to say something in the United States to make a difference.

18. Reporter: Are you concerned about Huawei's access to other markets? For example, in Europe and Australia, they are also considering or examining their relationship with Huawei.

Ren Zhengfei: European customers have been with us for 20 years, and they trust us very much. Europe has not rejected us so far, so we still need to increase our service to the European people, which we will not change.

Reporter: How important is it for Huawei to maintain market access in these markets? To what extent does the sustained access to these markets depend on US pressure on these countries?

Ren Zhengfei: Pressure from the United States has not played much role, because customers still trust us. Customers can trust us so much under such high pressure. Once this pressure is released, customers'demand for us may be ejected like a blowout. What if we can't supply the production at that time? I'm still worried.

Reporter: But Huawei is also losing some customers around the world, such as Australia, which has banned Huawei's equipment.

Ren Zhengfei: Australia has its own choice. Why should we pay so much attention to it?

Reporter: Europe is Huawei's big market, and it's also a very important base for Huawei. Are they also considering it?

Ren Zhengfei: No, Europe still welcomes us.

19. Reporter: In the past, you rarely came out to communicate with the media, but in the past six months, you have been communicating with many media. If you don't care about the trade war between China and the United States, and you don't care about Huawei's ability to do business in the United States, why are you sitting with me today, with a journalist from a media organization in the United States?

Ren Zhengfei: Firstly, after December last year, more than 90% of global media reports on us were negative because they did not know the truth. The Ministry of Public Relations believes that the world needs to see the real Huawei. People think that when I did not see the media before, the media was a little curious about me. So I'll see you all. After more communication, the positive voice of the media has reached 27% and will gradually reach 30%, so that the people of the world will know more about Huawei. I've talked more in the past six months, and maybe I'll talk more in the next six months, hoping to make the world more clear.

And I like you very much today, because your questions are very sharp, and I have not avoided any questions. My answers are sincere, and I have not avoided any questions. In this way, we show the American people a real Huawei, because they still don't know enough. Many Americans have never been to China. They may have watched our movies more than a hundred years ago, thinking that we still have a big braid, a melon skin cap, a stick and a big cigarette bag... Very conservative situation, he did not know that China's Internet era has made great progress. I come out to talk more, so that you can know more about the real Huawei.

Reporter: Mr. Ren, with all due respect, there are actually some questions I asked that you did not answer positively. For example, what strategies has Huawei adopted to deal with the US export ban?

Ren Zhengfei: Yes. Because we can not rely on American chips, we have chips ourselves. Time will ripen us for operating systems.

Reporter: There's another question. You didn't give a positive answer just now. Why are you so optimistic that Huawei's global customers will choose the operating system developed by Huawei for themselves? Instead of continuing to use Android?

Ren Zhengfei: As a matter of fact, our orders in the world are not shrinking. Our main order is for networking equipment, which is our main product and has barely shrunk. Many countries around the world are constantly issuing news that "our 5G is on". Many of them use Huawei's equipment. So if we say that the impact on us is only a little impact on the terminal, but the terminal in our company itself is a sideline, not the main business. So what does it matter to have an impact?

Reporter: Is consumer business not Huawei's most important business? I looked at Huawei's financial statements. Consumer business now accounts for a high proportion of Huawei's total business and is the fastest growing business of Huawei. As you said earlier this week, smartphone shipments in the consumer business fell by 40% last month.

Ren Zhengfei: Why did the United States attack our 5G, why not hit our terminal? Because 5G is very powerful, 5G is the connection equipment of the network, not the terminal. Therefore, the most important thing is that our connecting equipment occupies an international position. The terminal business is only affected by overseas business, but the domestic business has increased. In a word, the overall decline will not be so big, not too big a problem.

20. Reporter: I know that transparency is very important for you. That's why you communicated with me today, including with other media before. Why has Huawei always insisted that it is a private enterprise and considered becoming a listed company?

Ren Zhengfei: If today we are listed companies, can we survive? Maybe our stock price fluctuated and dropped thousands of miles, and the company collapsed. We are a private company, and the decline of tens of billions of dollars has not had much impact on us. Our ideal is still to be realized. Therefore, as a private company, we are far better than as a listed company. Listed companies mainly focus on short-term interests, depending on the current financial statements, dare not invest in the long term. Unlike us, we can invest in the next 10 or 20 years. So in the future, we will be leading more and more, not just today's 5G, which is the advantage of private companies.

Reporter: Many listed companies with larger volume than Huawei have successfully passed the difficult period. Huawei is now facing transparency problems in the United States. I don't really understand why you just said it was not listed. In terms of R&D investment, there are many larger listed companies than Huawei, and their R&D investment is not less than Huawei.

Ren Zhengfei: Then they should be better than us. Why should the United States hit our 5G?

Reporter: Let me give you another example. Facebook is also facing a lot of attacks in the United States, but because of their business restructuring, the stock price is rising. I want to ask why listing will bring challenges to Huawei's survival.

Ren Zhengfei: I think we are fighting for our ideals. If we are a listed company, maybe many employees will throw out their stocks and walk away. But now our employees are united and working hard, and our internal forces are united, so we have the basis to overcome difficulties, which is the advantage of not going public.

Second, financially, they are very rich. We are the poorest technology company. But we are ranked fifth in the world in terms of investment in scientific research, and we will increase our investment in the future. Although we will encounter some financial difficulties today, there will be a slight contraction, but we will not cut funding for scientific research because of difficult times, and the annual investment in scientific research will not be reduced by $15-20 billion.

21. Reporter: Many of the problems Huawei faces today are, in the final analysis, trust, transparency, and doubts about whether Huawei can operate independently of the Chinese government. Is Huawei considering setting up a fully autonomous subsidiary company overseas that is not governed by Chinese law?

Ren Zhengfei: No.

Reporter: If not, how can Huawei change some people's perception of Huawei and think that Huawei is an extension of China?

Ren Zhengfei: Who can unify the ideas of 7.7 billion people? There will always be people who think like that, as long as the customer knows about us. We don't need to take other measures for everyone to know. If he doesn't understand, he doesn't understand. History will prove what kind of company we are. Over the past 30 years, history has proved us. If we can survive in the next 30 years, it will prove even more. Why do we have to go public to prove it?

Reporter: What I just asked was not Huawei's listing, but the establishment of a fully autonomous subsidiary overseas. If this can solve the problems Huawei is facing globally, protect Huawei from the impact of $30 billion, and ensure that Huawei can survive, would you consider it?

Ren Zhengfei: 30 billion dollars is nothing. We don't need to change the whole operation mechanism. We prove to people all over the world that Huawei is a good company. It is to make customers feel it through experience. It does not need some politicians who do not know the technology to understand it.

Reporter: In any case, you would not consider setting up a fully autonomous subsidiary outside China, would you?

Ren Zhengfei: Outside China, we have subsidiaries in more than 100 countries, which are also independent. But not to prove to politicians, but to solve the problem of compliance, we are committed to abiding by the laws of our country, the agreements of the United Nations and international law.

22. Reporter: Your daughter is now detained in her own home in Canada, waiting for the extradition trial in the United States. This situation is not good, of course, but she can still stay at home and communicate with her lawyer. Canadians arrested in China are not treated equally. From the Canadian perspective, this is unfair. What do you think?

Ren Zhengfei: First of all, my daughter is not guilty, no criminal facts. SKYCOM has dealt with Iran in the past. This bank is clear from beginning to end. It deals with us by mail with its mark. They know the company, and they know how to settle transactions. My daughter is just in the middle of the process.CoffeeWhen the hall said a word to them while drinking coffee, it became a major crime against my daughter. As long as the court makes these evidence public, the East District Court of New York can ask the prosecutor, and our lawyer can also ask questions to prove that this history, both sides provide evidence, my daughter's problems can be clarified and solved. This bank knows everything from beginning to end. My daughter just said a word while drinking coffee. How did it become a crime? We believe that the judicial system in the United States and Canada is open and transparent. We believe that this problem can be solved step by step. So we wait patiently for the legal solution, and I do not feel aggrieved.

Reporter: As you just said, you believe that the judicial system in Canada is open and transparent. My question is, on the one hand, your daughter stays at home in Canada. Visitors and lawyers can contact her, but Canadians detained in China do not receive the same treatment. Do you think this is appropriate?

Ren Zhengfei: That's a national problem. How do I know? Now I'm mainly focusing on repairing "airplanes", depending on where our "airplanes" have holes and where they need to be repaired. I can't even care about my daughter's affairs. Where else can I have the energy to care about other things? Those things will be settled by negotiation between governments.

23. Reporter: Thank you very much, Mr. Ren, for accepting our interview today.

Ren Zhengfei: We have another chance to see you next time. I hope our "plane" has been repaired and is still flying. You are welcome to come back then.

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