Officially, Huawei ceased selling consumer electronics and telecom gear in Russia in 2022 after the country started a full-scale war against Ukraine. Unofficially, the company is hiring skilled individuals and supplying Russian government agencies and state-controlled companies with technology. Apparently, unlike its Western peers, the China-based multinational has also kept it R&D operations in Russia intact and spends hundreds of millions of dollars a year, according to a Forbes report.
As it turns out, Huawei has strategically navigated the shifting IT landscape in Russia, expanding its workforce and investment amidst a withdrawal of Western companies following the start of the war. The company hired available talent, focusing on robust research and development (R&D). As a result, Huawei company fortified its presence and increased the staff of its Russian Research Institute (RRI) by two-thirds since the pandemic. In addition, it invested heavily in partnerships with Russian universities and research institutions. The company now invests about $1 billion annually in its Russian operations, which includes its own R&D division and collaborations with universities.
"The money [Huawei spends in Russia] is substantial," a source close to the company said. "Huawei's annual investments in Russian science [amounts] hundreds of millions of dollars. It is a huge amount. Huawei's overall annual R&D budget in Russia is about $1 billion."
Such collaborations ensure a continuous flow of innovation and technological advancement. This investment plays a crucial role in Huawei's sustained operations and its ability to remain resilient and innovative amid turmoil.
After companies like Intel, Siemens, and Nvidia shut down their research centers in Russia, their employees either relocated to other countries, or stayed in Russia and had to find themselves a new job. Yadro (a Yandex subsidiary), Sber, T1, and Huawei capitalized on this opportunity, absorbing a substantial number of these skilled individuals who preferred to remain in Russia.
Specifically, Huawei successfully attracted professionals from Western companies that exited Russia, such as Siemens and Deutsche Bank. This strategy allowed Huawei to enrich its workforce with experienced and specialized individuals, enhancing the company’s competitive edge and operational capacity in the region.
Huawei's commitment to Russia’s academic and research institutions remains steadfast, with significant investments channeled towards collaborations with these entities. Investments reaching $1 billion annually signify Huawei’s intent to tap into Russia’s extensive technological and scientific potential, solidifying its footprint in the Russian IT landscape and ensuring a synergy that fosters innovation and technological advancement. In the end, Huawei bolsters its R&D prowess, whereas Russia retains skilled professionals.
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Is it shocking to anyone really?Reply
(not political mods just historical statement)
China and Russia are not enemies (doesn't mean they are bffs) so have no reason to harm the other. (basically the best allies each has in the area)
and for the normal folk in russia its good for them to not be completely shut off (nobody should suffer afterall)
Shocker. Huawei and Russia are both essentially banned from the US. Who would've knew that they are working together?Reply
Create a vacuum in a country, don't get shocked when others come to fill it in.Reply
I assume the article would've included it, if possible, but it'd be nice to see a rough breakdown of where that $1B is being spent. I think Huawei does a lot of things, ranging from networking equipment to chip design (via HiSilicon), RF communications, and AI. Not to mention their phones & the software running them.Reply
Quite a lot of IT workers reportedly left the country, when their jobs went away. Many stayed with the same employer and relocated, such as a chunk of Intel's GPU software team. Others might've left for other reasons and the decision became easier without their old job tying them down.InvalidError said:Create a vacuum in a country, don't get shocked when others come to fill it in.
So, it's not as if the divestment by western companies had no effect. I'm sure no one was under the impression that employment in those sectors would go to zero.
I would say the effectiveness of the divestment was very minimal. There will always be another tech company to show its face when, as was said, a vacuum is created. I am sure there were a lot of shoes to fill directly after the divestment, but the process was stretched out leaving time to fill most of said shoes.bit_user said:So, it's not as if the divestment by western companies had no effect. I'm sure no one was under the impression that employment in those sectors would go to zero.
Based on what? Naked speculation?helper800 said:I would say the effectiveness of the divestment was very minimal.
I've heard numerous news reports about the mass emigration of young, mostly IT-professionals out of Russia, in 2022 and perhaps early '23. The BBC has covered this from both inside Russia and in popular destination countries.
Still, I don't recall if the news reports had figures, but they did have a few interviews of the "left behind", who felt in the minority for having stayed. You have to keep in mind that an active military draft came into effect, so there weren't only economic reasons for leaving. Looming border closures further tightened time constraints.
I've even exchanged posts with another member of this forum who didn't exactly make a secret of his Russian expat status.
The country is under a lot of sanctions, which limits the markets their tech sector can serve.helper800 said:There will always be another tech company to show its face when, as was said, a vacuum is created.
I would not go that far, but it is inference, for sure. Most of the people in technology that are not heavily specialized can be easily replaced and there are always people learning said specialties. I believe that the impact was more minimal because although some companies have divested from Russia, not all have. This leaves a lot of companies room to expand their business to fill in the gaps.bit_user said:Based on what? Naked speculation?
I also find it odd that most news regarding the exodus from Russia did not include more concrete estimates or numbers of how many left, what industries they came from, and so on. I guess it is hard to get numbers unless they are required to be reported in some way.
Well, do you have any specific information about the employment sector, there? If not, then it fits the definition of speculation.helper800 said:I would not go that far, but it is inference, for sure.
Such as?helper800 said:although some companies have divested from Russia, not all have.
Any who don't, face practical challenges operating there and a reduced number of export markets to buy what they're producing.helper800 said:This leaves a lot of companies room to expand their business to fill in the gaps.
We can't know, because there's no one to report on such things. The only remaining media is state-run, and it's not in their interest to report on emigration nor would they find many sources willing to be honest with them.helper800 said:I also find it odd that most news regarding the exodus from Russia did not include more concrete estimates or numbers of how many left, what industries they came from, and so on. I guess it is hard to get numbers unless they are required to be reported in some way.
I have the same kinds of specific information you do from news article and coverage over the last year or so. I do not remember the titles and publications, but that is what I made my inferences on. Inferences just require reasoning and be based on any kind of evidence to be considered an 'inference.'bit_user said:Well, do you have any specific information about the employment sector, there? If not, then it fits the definition of speculation.
There are hundreds of companies that are still doing business in Russia some of which are tech companies.bit_user said:Such as?
See my last link, there are hundreds of companies that are doing fine despite these challenges.bit_user said:Any who don't, face practical challenges operating there and a reduced number of export markets to buy what they're producing.
No doubt. I was wondering why none of the places the Russian's were emigrating to for work would require information about what they are going to be doing in their country for work. Could there be public record of work visas issued to such people saying their job title or something to that effect?bit_user said:We can't know, because there's no one to report on such things. The only remaining media is state-run, and it's not in their interest to report on emigration nor would they find many sources willing to be honest with them.