(coco) #1

2019 Annual Report (^13)
Cyber security and privacy protection are, and will
always be, our top priorities. We have a robust
cyber security assurance system in place, and we
continue to invite third-party security organizations
to independently evaluate our products. At the same
time, we remain committed to improving our software
engineering capabilities so that we can deliver
trustworthy and quality products.
5G, AI, and cloud: Enabling industries
and driving the economy forward
Digital transformation is accelerating, powered
by emerging technologies like 5G, AI, and cloud
computing. This trend will soon propel the digital
economy into a new phase of development, where
AI-powered industry plays a leading role.
5G is converging with technologies like AI, cloud,
4K/8K video, VR, and AR. These technologies are
being tightly integrated into enterprise production
systems, changing the way we work. Together, they
help traditional industries go digital, making things
like smart ports, telemedicine, remote office work,
and robotic inspections a practical reality.
These technologies are also reshaping the
consumer domain. With support for applications like
high-definition live streaming, smart classrooms and
distance education, smart travel, and other forms of
immersive experience, they are taking people beyond
the boundaries of time and space.
We are beginning to see the effects of technology
spillover. ICT technology has become a new driving
force behind economic growth, pushing the digital
economy into a new era. We estimate that the digital
economy will grow to account for 25% of global GDP
by 2025, up from the current 15%.
Huawei works with its partners to adapt 5G, AI,
and cloud capabilities to meet the specific needs of
different industries, enabling digitization and driving
the digital economy forward.
We are building sustainability into the lifecycles of
all of our products. Our products and solutions help
many industries reduce emissions and develop circular
economy processes. We are actively working with
all industry partners to build a low-carbon society,
contributing to a greener and fully connected world.
For example, with our PowerStar network solution,
base stations typically use between 10% and 15% less
energy, cutting around 2,000 tons of CO 2 emissions
annually for every 1,000 sites. Huawei’s PowerStar
solution has been verified and deployed in multiple
countries, including China, South Africa, and Morocco.
Enhancing corporate governance and
ensuring operational compliance
A robust corporate governance system is the
cornerstone of sustainable development. It is also
the basis for our long-term cooperation with external
stakeholders. Building on a clearly defined corporate
governance structure, we continue to enhance the
design of governance-related organizations and roles,
and streamline our corporate governance operation
In January 2019, Huawei’s shareholding employees
elected new members of the Representatives’
Commission, producing 115 Representatives and 18
Alternate Representatives. The Commission exercises
rights on behalf of all shareholding employees.
We have also made further progress in streamlining
and standardizing how authority is delegated and
exercised throughout the company. In particular,
we have been implementing contract review and
conclusion at the rep office level, and are exploring
better ways to incorporate governance mechanisms
into everyday business operations.
At Huawei, we believe that legal compliance is a
bulwark against the uncertainties of international
politics. We comply with all applicable laws and
regulations in the countries where we operate. This is
the cornerstone of operational compliance at Huawei,
and it’s also a core principle of our management
team. We require all subsidiaries and departments
around the world to strictly comply with local laws
and all other applicable regulations.

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