Huawei founder says company should dodge sanctions by pivoting to software

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Xinhua/Cao Yang via Getty Images

Huawei founder and CEO Ren Zhengfei has reportedly urged the Chinese tech giant’s staff to turn the company into a major software force as a way to alleviate the impact of devastating US sanctions. In an internal memo viewed by Reuters, Ren says that Huawei should focus on software because the industry is “outside of US control and we will have greater independence and autonomy.”

Huawei is presently unable to mass-produce much of its hardware products because of sanctions forbidding US firms from doing business with it. The company stockpiled chips and components in an attempt to mitigate the sanctions, but the reserves are limited and in some cases will be swiftly obsoleted. Huawei is also blocked from using Google apps and services on...

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