Huawei and Chinese Tech Companies will Become Stronger as US Curbs Tougher

There is a saying when make a comparison between Chinese tech companies and US tech companies. 

Which company can compete against Cisco? The answer is Huawei. 

Which company can compete against Google Android? The answer is Huawei. 

Which company can compete against Intel? The answer is Huawei. 

Which company can comptet against Apple? The answer is Huawei. 

This awkward comparison shows that very few Chinese tech companies have the realy ability to compete against US peers, except Huawei.

That’s why US government put most of restrictions for Huawei during US-Chinese trade war, and it’s very rare seen in the history. 

However, I believe that Huawei will survive this and have a more bright future, since it has been through many more dangerous moments in history. 

I will put forward one similar case as example:

When Huawei was founded in 1988, the business of Huawei was to sell switches provided by Hongkong companies. The business was so success, and Huawei made a lot of money by agent sales. However, the Hongkong company cancelled Huawei previlege to sell their products. At that time, Huawei made the determination to manufacture switches through R&D, and becomes the top telecom company globally. 

As we know, chips and operating system as the basis of the hardware and software today, US government curbs Huawei from using Google Android, and banned non-US semiconductor suppliers to halt shipments to Huawei of products containing US technologies. If they pursue that type of business with Huawei, they have to apply for a license from Washington, according to the Latest US government restrictions. 

The US bans leave Huawei no choice but to accelerate research and development to build an open tech ecosystem of its own from hardware to software. Huawei HiSilicon is a global leading fabless semiconductor and IC design company that is dedicated to providing comprehensive connectivity and multimedia chipset solutions.

In 2019, Huawei unveiled HarmonyOS as the in-house operating system to tackle the restrictions on its use of the Google Android operating system. 

The tightened restrictions are a wake up call to all industries in China, especially many Chinese high-tech companies have achieved many success in different and jepordized the US corporations benefits, they will have to face the similar impact as Huawei sooner or later, such as Tiktok recently. 

However, this offered a good opportunity for Chinese tech companies to work together to reconstruct the tech world from hardware to software. In the mean time, US tech companies will lose many customers, and face fierce competition from more and more Chinese tech companies. 

 

Chinese Personal Website:雪球侠   
English Personal Website:Investment Traveler

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