Huawei recently released 2017 transcripts, achieving global sales revenue of 603.6 billion yuan, an increase of 15.7%. The number is bright, but in the view of Huawei’s president Ren Zhengfei, Huawei is just a “starting aircraft carrierâ€. How will Huawei sail to the future? When will 5G commercials arrive? How should Chinese companies seize the opportunities in the era of artificial intelligence? The reporter and Ren Zhengfei face to face. Reporter: In recent years, Huawei's R&D expenses have accounted for about 15% of sales revenue. What innovative areas will Huawei invest in in the future? Ren Zhengfei: Mainly engaged in basic research on the main channel, basic research and applied research of artificial intelligence. The breakthroughs in artificial intelligence are mainly algorithms, computing power and data. These are difficult to break through. We follow the world's input and synchronize the development of the world. In the field of artificial intelligence, we mainly do basic research to improve internal management. If it is to be applied to products, there is still a long time and distance. For cutting-edge science, R&D implementation first "opens a shot", "let the bullets fly for a while"; seeing the clues and then "playing a shot" can only be decided by a small-scale study and discussion; if the attack on the "wall wall" needs to be invested in "fan" The amount of Frye ammunition (meaning that large amounts of ammunition are used for intensive bombing without cost) is collectively decided by management. Reporter: 5G commercial acceleration, what kind of layout does Huawei have on 5G? Ren Zhengfei: The advanced research of science and technology does not mean that social needs have already arisen. If the social needs do not develop to the extent we imagine, the significance of our investment is not so great. Therefore, 5G may be overheated. I don't think that 5G has such a large market space because the demand is not fully generated. If you need 5G for driverless driving, how many cars can you drive now? In fact, ships, airplanes, etc. have already achieved unmanned driving, but if the pilot does not board the plane, will the passengers dare to board the plane? This is the truth. System engineering is not a problem that can be solved with a bell. Reporter: Will Huawei be diversified? Is there a new layout in the new economy? Ren Zhengfei: We are talking about pipes, just the flow of traffic. The terminal is also a pipe, it is equivalent to a "faucet", and the business is also a pipe. Our technical theoretical architecture model will promote the "Moore's Law of Cost Reduction per Bit" to simplify the network. As a result of the simplification of the network, our sales revenue will continue to decrease, but the benefit of the entire society. Huawei has been doing this for so many years. We are constantly declining and need to do more research in basic science. But we will not do diversified business and will always focus on the main channel. Reporter: What are the shortcomings that need to be filled in technical research? Ren Zhengfei: Engaging in the manufacturing industry must be solid, relying on speculative stocks, speculation in the real estate market, mathematics can not be "fired", it will take decades of efforts. Artificial intelligence cannot be built on the beach, and this "house" will collapse sooner or later. The basic algorithms, computing power, and data of artificial intelligence, at present, our first two studies are still weak, and the data is not strong enough. For example, 5G has two key technologies: long code and short code. Long code is a coding method written by a professor in the United States in 1964. The short code is a coding method written by a professor in Turkey in 2008. Around these two equations, tens of thousands of companies in the decades have followed the research and become the standard. Once you have done it, you know how hard it is. Reporter: Many companies are doing cloud computing. How does Huawei make features? Ren Zhengfei: In terms of cloud computing, Huawei actually does not have business content. We just make a basic platform. This basic platform is like the black land in the northeast. Anyone can come to plant crops. "Soybean", "sorghum", "safe city" and "car"... In fact, Huawei Cloud is a collection of thousands of contents. The transformation of “land†is also very difficult. Until this year, we cannot say that we have really completed this platform. Transmission and exchange are not platforms, but it is the foundation of the platform. Huawei connects the transmission and exchange of more than 1 trillion US dollars of network stock in more than 170 countries and regions around the world, transforming it into a platform, allowing all "crops" to grow. It is an ideal for us. Reporter: The annual report shows that Huawei's performance in 2017 is very good. Why is management still accountable? Ren Zhengfei: Actually, we are not doing well. Last year, our company had an activity called "The Phoenix is ​​not a dead bird." At that time, many senior managers were handled. Many people were downgraded to two levels. I was also one of the targets, and the rotating CEOs were all punished. why? It is necessary to warn our company management to be more scientific. Reporter: Will you worry that Huawei will have a big business illness when it comes to today's mass? Ren Zhengfei: I think that our current big business illness should be very serious. The purpose of the Human Resources Management Outline Version 2.0 is to criticize ourselves, how to streamline the organization and improve efficiency. Some senior managers criticize ourselves, saying that the management of people has been scientific management, and now how to become a mathematical management? This is a rigid dogma. The organization is too large and too heavy... Board members take the lead in shelling Huawei and promote the company's vigilance. Of course, solving these problems is not a one-off event, first shelling, and then a little reform. As long as we see the direction, we can slowly reform and improve efficiency. Reporter: In the past, when we mentioned Huawei, we all said that Huawei is a "wolf culture". In the past few years, it has been reduced. Ren Zhengfei: We are always a wolf culture. Some people may understand the "wolf" distortion, not the original intention of our personification. First, the wolf smells very sensitive, smells the opportunity to go forward; second, the wolf has always been a group of wolves to fight, not individual heroism; third, may have difficulty eating meat, but the wolf is indomitable. These three points are positive for the struggle. Reporter: I often hear Huawei’s rumors of “outside moveâ€. How does Huawei plan for the next step? Ren Zhengfei: We never thought about moving out. Our headquarters is always in Shenzhen. Reporter: Before you mentioned the relationship between enterprise reform and innovation, how should technology companies promote reform? Ren Zhengfei: I believe that the country will be more open. First, through openness, more people can come in and companies can compete fairly in an international environment. Second, now that the economic development environment is very good, adhering to the path of legalization and marketization, we can hold up the ideals and dreams of enterprises. 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