Huawei Technologies has developed enterprise IT management software to replace Oracle’s, taking another step toward reducing its reliance on American technology.
The telecommunications equipment maker, which cannot use US technology without a license, is developing internal software and chips to avoid the effects of being on a US trade blacklist.
It replaced its legacy enterprise resource planning (ERP) system with a solution over which it “has full control,” it said in a statement on Thursday.
Huawei’s reliance on Oracle became untenable when the Austin, Texas-based company stopped providing on-site software updates and technical services after Washington’s 2019 trade ban.
Calling it “the most extensive and complex transformation project Huawei has ever undertaken,” the company spent three years and thousands of employees developing its own enterprise system known as MetaERP. Several local partners also contributed, including cybersecurity firm Qi An Xin Technology Group and software developers Kingdee International Software Group and Kingsoft, Huawei director Tao Jingwen said in a separate statement.
Huawei declined to comment on whether it plans to commercialize MetaERP, which is currently for internal use only.
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The replacement is in line with Beijing’s desire to shed reliance on foreign suppliers and develop self-sufficiency in key technologies. Chinese President Xi Jinping has ordered the country to increase the use of local alternatives to replace foreign technologies, pledging more funding and tax incentives to key research institutes.
Washington has imposed a series of restrictions on China’s technology industry, including blacklisting companies such as Huawei and Semiconductor Manufacturing International, which are perceived as national champions. The US has also implemented strict controls on the export of chips and chipmaking equipment to China, effectively preventing the world’s largest contract chipmaker, Taiwan’s TSMC, from making next-generation silicon for Chinese customers.
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huawei he is increasingly vocal about the progress he is making in the development of indigenous technologies. Last month, a senior Huawei executive said the company has developed software tools capable of designing chips as advanced as 14 nanometers, coming close to avoiding US sanctions. — (c) 2023 Bloomberg L.P.
