Chinese technology giant frees itself from American puts and degenerates into global company.
Last week, the founder and CEO of the Chinese company Huawei, Ren Zhengfei, in a very emotional speech, warned his employees that the company is “between life and death.” Sounds apocalyptic. However, it should be understood that the Chinese language is filled with double meanings, and Chinese philosophy and mentality perceive these two concepts differently than in the West. Life and death are two components of one process. Or two states on the eternal path of rebirth. Just like the crisis in Chinese, it is far from the end of the world, but the starting point of further development, the point of denouement and new movement.
That is why at this “dying hour”, the head of the Huawei urged employees who were especially underloaded not to lose heart, but to enter the “special forces” and concentrate on new projects of the company, otherwise they would face a reduction in salaries or dismissal.
- We must reorganize in harsh and difficult conditions, creating an invincible iron army that will help us defeat, – the head of Huawei said. At the same time, Ren Zhengfei is confident that his company will flourish, the actions of the United States will not cause her significant damage, but rather strategically useful for Huawei.
- Now our company can focus more on the most competitive products, – Zhengfei explained, adding that Huawei can succeed without relying on American companies.
Recall, the attack on the Chinese technology giant began on December 1, 2018, when the Huawei fund director Meng Wanzhou, who is the daughter of the head of the company, was detained at the airport of Canadian Vancouver at the request of the United States. The reason for the detention was that Huawei, disobeying the orders of the “Washington Regional Committee”, dared to conduct business with Iran contrary to American sanctions. The Americans say that allegedly Maine, as CFO, is personally responsible for transactions in Iran through English and French banks. What is this, the reader will ask, because this is an ordinary business? But they think differently in the USA.
Even then, it was clear that the detention of Maine was only an excuse for declaring war on the Chinese technological giant, which naturally found itself at the forefront of the US global war against China, whose goal was to stop the rapid economic and technological development of the Celestial Empire. They want to shoot down a competitor on takeoff.
In May 2019, Huawei and 70 subsidiaries were blacklisted by the U.S. Ministry of Commerce. A number of major US technology companies, including Intel and Google, announced the termination of cooperation with the Chinese company.
At the end of June, US and Chinese leaders Donald Trump and Xi Jinping at the G20 summit seemed to agree on a ceasefire, one of the points of which was the lifting of the ban on cooperation with Huawei for US companies. However, the Americans broke the agreement the very next day. After that, it became known that the US authorities have decided not to issue licenses to American companies to work with a Chinese counterparty.
In this context, the speech by the head of the Huawei does not look like a cry of a drowning man, but sounds like a response to a declaration of war, the entry into which the Chinese company was in every way delaying. But now accepts the challenge.
Confirming this idea, a spokesman for Huawei said a little later that the Chinese telecommunications giant is completely ready to work under US sanctions pressure, and the influence of restrictive measures was less than expected in June. According to preliminary estimates, the company will lose 10 billion dollars from sanctions. Is it fatal for a business with annual revenues of $ 109 billion? Of course not. In addition, oddly enough, the sales of Huawei smartphones in the first half of 2019 increased by 24 percent, to 118 million gadgets. Historical record.
Immediately after the Americans declared war on the Chinese company, it turned out that Huawei was preparing for the battle. In response to excommunication from the US operating systems, Huawei presented its own development, in particular for smartphones – HarmonyOS. And not so long ago, it demonstrated the new Ascend 910 processor, equipped with artificial intelligence technologies. At the same time, the Chinese are very cautious, emphasizing that until the last they will count on cooperation with American companies with which they have been working for many years.
At the same time, the Chinese are very cautious, emphasizing that until the last they will count on cooperation with American companies with which they have been working for many years.
But there is no doubt: alternatives to American technology and components will appear like mushrooms after the summer rain, which became for the Chinese a cold shower spilled from Washington. As follows from the statements of the representatives of Huawei, the development is in full swing, in all directions and only intensified after the statement of the head of the company “about life and death.” Few people know that last year, Huawei allocated $ 35 billion for research and development (R&D). For comparison: similar expenses of Apple amounted to 14 billion dollars.
This to some extent illustrates the allegations of theft of technology that constantly sound from Washington without concrete evidence and facts.
On this occasion, the new Chinese Ambassador to Russia Zhang Hanhui expressed himself very accurately and succinctly: “America simply does not have the technologies that exist today in China. How can we steal something that is not in the USA or that will appear only tomorrow? ” Indeed, Huawei is a recognized leader, for example, in the development and implementation of 5G data transfer technology.
It is clear that for Washington, which was planning to break the Huawei force by force and generally slow down the development of China, this is not an argument. But in response to US restrictive and protectionist actions, the Chinese giant is acting in the opposite direction. We can see for ourselves.
In 2018, Huawei has more than doubled its revenue in Russia to 132.2 billion rubles (this indicator increased by 30% for the Russian “daughter” Apple, to 197.2 billion). In addition, in 2018, Huawei took second place in smartphone sales in Russia, displacing Apple in third place.
It is known that the Chinese giant is actively negotiating with Russian partners in order to expand sales and deepen technological cooperation. We are talking about joint development of operating systems and the use of Russian applications. Latest News: Huawei has dramatically expanded its Russian presence and is looking for a second office in Moscow. Until 2024, the company intends to increase its staff in Russia by 4 times and to hire about 1.5 thousand people. So this is our chance to win a small battle in this alien war, while supporting our partner.
Meanwhile, the US president says: “Our country has already lost trillions of dollars because of China through stupidity. They stole our intellectual property worth hundreds of billions of dollars a year, and they intend to continue. I will not allow this! We don’t need China, and frankly, we would be much better without it … Our great American companies are now obliged to start looking for an alternative to China, including returning production home and producing their goods in the United States. ” These words immediately brought down stock prices of the largest American companies, most of which in one way or another earn on China.
Mr. Trump, apparently, is not very knowledgeable that, for example, almost all Apple smartphones are manufactured in China at American or joint ventures located in special zones with preferential taxation. The Chinese work at these factories, receiving moderate salaries by American standards. At the same time, some of the components for gadgets are imported from the United States, and then finished products are also sold there: for some time without duties and customs tariffs. That is why “apple products” were so well bought all over the world. If you transfer all this production to the United States, Apple will very soon become a toy for the elite with a corresponding reduction in the market. However, this market has narrowed after the Chinese urged not to buy American. And if Trump intended to fence himself off from the world with trade duties, then he may be mistaken in his calculations. The US market, including young children and old people at least 4 times less than the Chinese. Even if China likewise decides to respond with self-isolation, its development reserves far exceed those of the United States. But China does not intend to do this; it is a principled opponent of protectionism and trade restrictions. Let s hope the US president will not shot himself in the foot before reaching his own re-election.