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#Huawei #China: Nothing is more important than you being inspired and empowered!

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On 16 March, 2017, Huawei (West Europe) and Rotterdam School of Management set up a collaboration based on smart education and digital transformation, covering an overarching collaboration on research and education, between Europe and China. The leader of the collaboration programme, Professor Ying Zhang1, in this article shares her brief observations and ideas about Huawei’s success as the representative of Chinese multinationals.

Ren Zhengfei, as the founder and the “spiritual guru” of Huawei, has been legitimizing Huawei as a company for employees (with himself only sharing 1.4%). Most studies about Huawei’s success argues on its collective ownership structure, ignoring the foundation of such a structure from an ex-ante point of view, which not only grants employees an equal right to own their endeavours and returns on the basis of legal structure of “ownership legitimacy”, but also acknowledges and respects employees’ equal identity to strive for better conditions and collectiveness. Huawei is an employee-collectively-owned company, but is also a “planet” infused with respect to hardship, a strong striving attitude, and raising and praising strivers.

Therefore, the purpose of a company is altered, from being financial-oriented to collectively striving for collective goodness. This consists of two spheres of action: the value sphere and the system sphere. In the value sphere, Huawei sticks to the principles of being collaborative, open, striving, humble, abstracted in its core value: taking customers as the first and striving effort as the foundation (以客户为中心,以奋斗者为本" in Chinese), being the foundation of Huawei culture, rooting in Huawei’s hearts; being upheld by Huawei people; and bringing Huawei to its current position and move forward (Huawei’s committments to their own core value). In its system sphere, working with stakeholders is the key. The value sphere acts as the axis of 'Huawei Planet', guaranteeing that Huawei is more self-conscious, while the system sphere serves as “Huawei Energy” to connect Huawei with each other (internal and external members) efficiently.

These two spheres have co-evolved. The value sphere of Huawei sticks to the tradition of Chinese philosophy (four spheres of living built on Daoism, Confucianism, and Buddhism - an innocent sphere, utilitarian sphere, moral sphere, and transcendent sphere), while the system sphere has been continuously upgraded by learning from the global leading partners. Thus, the concept of Huawei’s customer-first core value can be unfolded. The implementations of such are on Huawei’s daily strategy and behavior: (1) customer-centre is a mindset taking stakeholder-based views and the vision of helping the world prepare for a digital (sharing) economy, which paves a path to an equality-based social-economic structure. (2) collaboration implies learning to share with stakeholders on their concerns, values, tension, responsibility, benefits and by doing so, innovation can be emerged and respected, with joint endeavours with stakeholders. Examples of such are numerous, and happen everyday with Huawei’s stakeholders. The well-known cases are Huawei as the first one rescuing ICT infrastructure for clients, onset disasters, during the earthquake in Chile and Japan, as well as the war in Iraq and Libya.

To interpret Huawei’s success in an equation, I propose the collective prosperity that Huawei appreciates as the dependent variable; while being collaborative, open, being striving, being humble as independent variables. All the variables can be sub-categorized into the internal and the external, as well as subjected to individual, and to the sum. From an input point of view, collectiveness requires being open, being humble, and collaborative in both attitude and action, which I call it Mentality-Behavioral Property (MBP). From an output point of view, collectiveness implies generating open phenomena, shared platform/economy, humble culture, and striving with collaborators, which I call it Intellect Property (IP). IP can be referred to “the spirit”, while MBP can be referred to “the empowering process”. Importantly, this equation is not a one-time one-way simulation, but recycles over time, which means that MBP generates IP; IP endogenizes MBP. In terms of the cross-effect, Mentality-Intellect Property is served by the Value Sphere, while Behavioral Property is served by the System Sphere. Therefore, the Value-System Spheres, MBIP System, Four Spheres of Living all together (with an order) decode the Huawei’s success. Variables in this equation do not simply create effects (collective prosperity) alone; instead, taking effect by pairing the other team of concept/commands: “being competitive, being tough, and being ambitious”. The pairs are not conflicted, but complemented. Studying on Huawei’s catching up, being humble is for self to others and for self to be more self-conscious, while being tough is for self to self in immersing personal goals with company’s collective goals in order to approach to the moral sphere of living (or even beyond); being ambitious is for self to self in imprinting own-dream on company’s collective dream, however measured by being “competitive ”for self to self in striving for a better solution for clients (and other stakeholders).

In addition, this ideology of Zhong Yong (Doctrine of the Mean) in the tradition of Chinese philosophy within the stream of Confucianism is reflected in Huawei practice as well, where Huawei takes the notions of its application on being of objectivity, sincerity, honesty, and improvement through self-watchfulness (in one of ways of Zhong Yong’s guidance), meaning learning from others to improve self during the process of self-cultivation via self-education (high R&D investment), self-discipline(focusing and concentrating), and self-questioning (improving from problem-solving). In terms of collaborating with stakeholders, Huawei’s practice is reflected well by Zhong Yong’s guidance in Leniency where Huawei has been trying to perfect their capability in understanding, eliminating concerns, and holding tolerance towards stakeholders, particularly towards their customers (customer-centered strategy).

To some extent, it is not fair to simply claim the reason of Huawei’s catching up and its great success to their particular organizational culture, or their tougher system of management practice (as many discussions externally). In my view, the analysis regarding this should be holistic, meaning that we should not just focus on how well and how fast Huawei learned from western management practice and capable to tailor-make their management outfit but also must understand the role of their core value in such a holistic system. As discussion aforementioned, the value side and outfit (system) side are complemented and constitute Huawei’s catching up construction, by which Huawei is able to practice their daily management (which they either acquired or learned from collaborators (such as operational, accounting, and human resource management systems), and able to do self-cultivation process through self-education, self-discipline, and self-questioning. This mechanism is down to the core of their cognitive notion of carrying customer-first and thrive-pride value. Huawei is a perfect example of Chinese firms being thriving in a particular sector worldwide, by indigenously promoting an Eastern-Western integrative model that carries Chinese philosophy as the root and the best western management practice as the expression. This construction-derived application can be argued sourcing from the application of eco-system and stakeholder-view, and fundamentally benefiting from the tradition of Chinese philosophy where the sphere of living and the doctrine of the mean are taken into account.

To close, the definition of success is various, and the reasons for success are random. Judging Huawei as an entity of success or not needs to take on an extra condition which I stress as the setting of time-being and space-boundary. Success is only a status within time-being in a specific space. It can be a cause and same time can be a consequence. We shouldn’t take success as the reason to investigate a target while shouldn’t for a non-success. Success is a way, and additionally is on the way rather than on the destination. What is seen or heard differs from what is understood and believed. My experience working with Huawei people and years of collaborating with them formally and informally assure me that a less error-added methodology to understand others is an in-person emersion approach, meaning that allowing yourself to be part of the study target’s spheres of living, with a strong self-control towards no subjective judgment, being humble with study subjects, feeling what they feel, thinking what they think, speaking what they speak, paining what they pain, and most importantly believing in what they believe in the universe of Huawei’s “collective effort towards collective prosperity”.

1 Dr. Ying Zhang is an Associate Dean for China Business and a Professor on Entrepreneurship and Innovation, as well as the Founder of Erasmus-Huawei Collaboration Program, at Rotterdam School of Management, Erasmus University, the Netherlands. [email protected]

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#Huawei delivered a lifeline from Samsung as latest US sanctions hit

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Huawei has reportedly been delivered a helping hand from smartphone rivals Samsung as they deal with more US sanctions inflicted on them, writes Dion Dassanayake.

The P40 Pro and P30 Pro makers this week (15 September) are seeing a new set of US sanctions imposed on them. Following on from Huawei being put on the US Entity trade blacklist last year, Donald Trump's administration are ramping up the pressure on Huawei even further with a new restriction that means a company which wishes to supply parts that use any kind of American tech to Huawei needs to apply for a license. The latest sanction affects a wide range of tech used in Huawei smartphones such as chips and OLED displays from Samsung and LG.

LG has already commented about this latest round of sanctions, saying it will have little impact on its operations as the firm supplies a limited amount of panels to Huawei.

Samsung is yet to comment, but the South Korean tech giant has reportedly applied for a license to supply the P40 makers with panels.

According to a post by ZDNet, Samsung Display has applied for a license from the US Department of Commerce before the latest sanctions kick in on September 15.

If the license is given the green light then it will be great news for both parties.

Samsung Display is the world's biggest OLED provider, with Huawei their third most important customer behind Apple and Samsung Electronics.

While Huawei will be hoping the license gets approved as if it doesn't it leaves them with few alternatives.

Elsewhere, ahead of the latest US sanctions coming into force Huawei has reportedly been stockpiling Kirin chipsets.

Reports coming from China claim Huawei chartered a cargo plane to Taiwan to ship Kirin and other related chips back to them by 14 September.

Huawei has already confirmed that their upcoming Mate 40 handset will be the last to feature their own Kirin chipset.

Huawei’s consumer business CEO Yu Chengdong has confirmed the restrictions being implemented on 15 September means its Kirin chipsets "cannot be manufactured" after that date.

HuaweiHuawei have been hit by a number of restrictive US sanctions 

Huawei chips are manufactured by Taiwanese firm TSMC which use equipment sourced from the States.

Recently, Huawei chairman Guo Ping spoke about the latest sanctions coming from the Trump administration.

Staying upbeat, Guo admitted the latest sanctions would "cause certain difficulties" but said "I believe we can solve them".

Guo also said "the world has been suffering for a long time" over the power Google wields on the Android ecosystem and that the globe is "looking forward to a new open system". The Huawei bigwig added: "Since Huawei helped Android to succeed, why not make our own system successful?"

Guo, whose firm in Q2 of 2020 became the largest smartphone manufacturer in the world, added that Huawei was up to the "fight" to succeed. The Huawei chairman said: "HMS must have a ‘Foolish Old Man Moving Mountain Spirit’, no matter how high the mountain is, dig an inch or less, persist and fight for a long time, we will definitely succeed".

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Competition zone for 2022 Olympic Winter Games goes deep in sports industry

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Chongli district, as a major competition zone for the snow events of the 2022 Olympic Winter Games, is accelerating construction of ski resorts and relevant facilities to develop the sports industry, writes Zhang Tengyang, People’s Daily.

So far, it has built 7 middle- and large-sized ski resorts, including 169 tracks that total 161.7 kilometers.

Wen Chang, is a 56-year-old resident of Chongli, Zhangjiakou of North China’s Hebei Province. He now works at the Thaiwoo Ski Resort & Alpine Park in the district.

The location of the resort was once Wen’s home - Yingcha village. In the past, like other villagers, Wen lived in an adobe house and made a living by growing cabbages. However, due to the lack of water resources, the crop not always harvested.

A hailstorm happened in 2011, which lasted over 20 minutes, ruined all the crops, and I cried in the field,” Wen recalled.

Later, the ski resort was built in the village. Wen and his family moved away and received compensation for relocation. They bought an apartment in downtown Chongli.

Thaiwoo Ski Resort & Alpine Park, starting operation since 2015, has developed from a simple ski resort into a “small town” that gathers relevant snow and ice industries such as hotel, catering, costume and winter sports.

The prospering snow and ice industry also created abundant job opportunities for local residents. Yingcha village had 70 households, and the resort has created a job for at least one person from each of them.

Wen works at the staff canteen of the resort and earns 4,000 yuan ($586) per month with social insurance. His two daughters, after graduating from college, are also working at a local resort and a tourism investment company, respectively.

Ski tracks are common in Thaiwoo Ski Resort & Alpine Park. However, the white tracks in winter are green in summer, winding in the dark green forests on the mountain. Though it’s not snow season at present, visitors are still hustling in the resort. According to Tong Haitao, an employee of the Thaiwoo Ski Resort & Alpine Park, an outdoor off-road racing event will be held there several days later, and is expected to attract more tourists.

Relying on the opportunity of the 2022 Olympic Winter Games and favorable natural scenery, Chongli has steadfastly developed skiing industry in the winter and outdoor activities in the summer, making remarkable performances in both Winter Games preparation and economic development.

Since Beijing won the bid to host the 2022 Olympic Winter Games, Chongli has newly planted 48,200 hectares of forests, improving its forest coverage from 52.38 percent in 2015 to 67 percent. The figure stands at 80 percent in core the core zones of the Olympic games.

Since 2017, the district has also seen prosperous tourism industry. The Thaiwoo Ski Resort & Alpine Park alone had received 200,000 visitors last summer, almost the same with those seen in the winter.

The thriving tourism created huge development space for local residents. Tong, who worked in Qingdao, East China’s Shandong Province, is one that returned to his hometown after seeing more job opportunities there. He was once an electrician when he just entered the resort, but as summer activities were more and more launched, he was promoted and took up more responsibilities. “My income doubled after I became a department chief,” he said.

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Xi encourages Chinese scientists to make sci-tech research intensive, extensive

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Chinese President Xi Jinping stressed that scientific and technological development must target the global science frontiers, serve the main economic battlefield, strive to fulfill the significant needs of the country and benefit people's lives and health, writes Du Shangze, People's Daily.

Xi made the remarks at a symposium attended by scientists in Beijing on 11 September.

Fu Qiaomei, a research fellow of the Institute of Vertebrate Paleontology and Paleoanthropology under the Chinese Academy of Sciences (CAS) delivered a speech at the symposium. Her speech was joked to be the "oldest topic introduced by the youngest scientist," as the woman was only in her thirties.

According to her, what she does is to study the question of who we are and where we came from through ancient genomes.

To explore the long stretches of history calls for perseverance. Fu shared with the president a question that she had frequently been asked over the years - what usages her study has. She told Xi that she once considered switching to hotspot research when struggling to maintain her lab, but finally decided to stick to it. She hopes that the country can further guide the public’s opinion on basic research, saying the so-called usage is not the only criterion for evaluation.

Deeply impressed by what Fu said, Xi replied that unpopular subjects are always considered useless, but such practice might hinder the development of these subjects. He told Fu that evaluation on scientific research calls for insight, global vision and science-based analysis.

Basic research is the source of scientific innovation. That’s an issue that has been long considered by the Chinese President. He stressed the importance of enhancing basic research, saying the root cause of China's stranglehold problems in science and technology is the lack of basic studies.

He demanded necessary fiscal, finance and taxation support for progressive research units and enterprises engaged in basic studies, regardless of their types of ownership and system. He said a favorable ecology for basic studies shall be developed in an innovative manner.

The inflow of overseas returnees in the recent years indicated the attraction of China’s development, and the topic of talents was a focus at the symposium.

Academician Yao Qizhi suggested to build a complete chain of talent cultivation to foster the “blood making” capacity of China. Academician Shi Yigong reported the progress of the construction of the Westlake University, a new research-oriented private university in east China’s Zhejiang province, hoping it to become a top-notch scientific and technological incubator and a top base for talent cultivation.

Xi recorded what they said on a note book when talking with them, noting people are the source of China’s scientific innovation.

He demanded bolder practices in talent attraction and cultivation, suggesting to introduce opener and more flexible mechanisms. He stressed that China should gather first-class talents from the world and attract high-level talents from overseas, and build a competitive and attractive environment for overseas scientists working in China.

The president encouraged the spirit to seek truth in scientific research, saying scientific innovation, especially original innovation needs creative and dialectical capability and strict verification.

Scientific research shall start from the development trend of the country to make preparation in advance, Xi said, adding that the selection of research directions shall be demand-oriented and address the urgent and long-term demand of the country to solve practical problems.

The planning of the Fourteenth Five-Year Plan is being made when the timeframes of the two centenary goals converge. Recently, Xi has convened several symposiums to solicit opinions. At this symposium, he listened to speeches of 7 scientists, saying they have a broad mind and are enlightening. He also encouraged other scientists to submit advices in written forms.

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