Opinions
2019.05.23 17:45 GMT+8

Huawei will not be 'killed'

Zhu Zheng

Editor's note: Zhu Zheng is an assistant professor focusing on constitutional law and politics at China University of Political Science and Law. The article reflects the author's opinion, and not necessarily the views of CGTN.

Banning Huawei from the U.S. market and cutting off its vital components supply is “10 times more important” than a trade deal with China, said former White House chief strategist Steve Bannon in a recent interview with the South China Morning Post. 

According to Bannon, the Trump administration will be dedicated to shutting other Chinese companies out of the Western markets, and even if Trump only has one term, there will be no less antagonistic administration in the years to come, as containing China has become a bipartisan consensus.

Apparently, Bannon's words provided a sober warning to the fraught China-U.S. relations ahead, and his observation that there is an anti-China sentiment among American politics is arguably true. However, his blaming China for the decline of America's competitiveness, and in particular, his pledge to shut down Huawei may hit a wall.

First of all, sense and sensibility played a major role for both Americans and Chinese to choose partners and products. On the American side, despite the executive ban barring American companies from selling equipment and the temporary reprieve taking effect until August 19, some American companies are working day and night to sell products to Huawei. 

Ren Zhengfei, Huawei's founder. /VCG Photo

After all, Huawei purchased 70-billion-U.S.-dollars' worth of components and parts in 2018 from 13,000 suppliers, and of which, roughly 11 billion U.S. dollars was spent on products from dozens of U.S. businesses. That means losing Huawei as a customer could cost these companies arms and legs.

On the Chinese side, the U.S. export ban may nudge die-hard iPhone fans to switch sides. According to some analyses, the ongoing nationalist sentiment arising from the American embargo may play to Huawei's favor and Apple's market share in the Chinese mainland is expected to slide as the trade tension escalates. 

Moreover, setting aside the political concerns, Apple's offering and pricing strategies are not as cutting-edge as Huawei's, and perhaps serve as the primary reason for Apple's market drop.

Secondly, Huawei's vision and composure determine that it will continue to thrive. Huawei founder Ren Zhengfei claimed in a recent interview that Huawei has prepared for a clash with the U.S. government for years, saying that it was only a matter of time.

Huawei's customer service center in Berlin, Germany. /VCG Photo

Huawei is a company so hard-working, open-minded and forward-looking that it is bound to survive. In his interview, Ren told the press that his employees “sacrificed” the interests of individuals and families for the sake of an ideal – to stand at the top of the world. And spite of Washington's hawkish measures, Ren nevertheless expressed Huawei's gratefulness to American companies for their contributions to Huawei over the years. The very features of the company determine that Huawei will not fall.

Thirdly, even if the Western world follows Trump and shuts Huawei out of their market, that does not represent a cul-de-sac. In his recent visit to Jiangxi Province, President Xi Jinping made a rallying call for self-reliance and technology innovation. 

Indeed, in the “ever-complicated international environment,” technology companies like Huawei should attach more weight to self-reliance innovation and keep a clear eye on the possible challenges ahead. Even if the U.S. made up its mind to kill Huawei, the company should advocate the spirit of a “new Long March” and prepare for the worst.

As Ren said in his interview, if the lights go out in the West, the East will still shine; and if the North goes dark, then there's still the South. The U.S. does not represent the world. Huawei will still gain understanding and cooperation in the world.

It is a very difficult time indeed, but as long as Huawei still sticks to its hard-working and open-mindedness, it will continue to thrive despite Washington's restriction.

(If you want to contribute and have specific expertise, please contact us at opinions@cgtn.com.)

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