Huawei Makin Perkasa. Blokade AS Blunder Besar.

Summary

Huawei’s journey from a small Chinese tech startup to a global tech giant is a story of resilience and innovation. Despite facing severe sanctions from the U.S. and European nations, Huawei adapted by developing its own chips, the Kirin 9000s, and creating Harmony OS to replace Android. These moves allowed the company to continue thriving and even challenge the dominance of Western tech giants. Huawei’s ability to overcome adversity, innovate in 5G, AI, and cloud computing, and regain its foothold in China shows that isolation doesn’t always lead to defeat—sometimes, it sparks a powerful comeback.

Takeaways

• 😀 Huawei's journey of resilience began in 1987 when Ren Zhengfei founded the company in Shenzhen with just 21,000 yuan.
• 😀 Initially, Huawei focused on distributing communication tools but quickly shifted to developing its own products, starting with the CNCO8 telephone switch.
• 😀 Huawei made its first international expansion in 1997 by entering the Hong Kong market, marking its entry into the global technology landscape.
• 😀 The company heavily invested in research and development to reduce reliance on Western technology, setting the foundation for future growth.
• 😀 By 2010, Huawei had become a major player in the global technology industry, offering its products and networks in over 170 countries.
• 😀 The rise of 5G technology was one of Huawei's most significant breakthroughs, but it also led to increasing suspicion from the U.S. government, which cited national security risks.
• 😀 In 2018, Huawei's CFO, Meng Wanzhou, was arrested in Canada, further escalating tensions between China, the U.S., and Canada.
• 😀 In 2019, the U.S. placed Huawei on an entity list, banning access to critical American-made technologies, severely affecting Huawei’s ability to operate internationally.
• 😀 Despite facing severe sanctions, Huawei launched the Mate 60 Pro in 2023, equipped with domestically produced Kirin 9000s chips and running the self-developed Harmony OS.
• 😀 Huawei's commitment to independence was showcased by its development of Harmony OS, which is now a viable alternative to Android and has gradually gained traction in the Chinese market.
• 😀 By 2024, Harmony OS had captured 15% of the smartphone market share in China, signaling a decline in Android’s dominance in the region.

Q & A

Why was Huawei blacklisted by the United States in 2019?

Huawei was blacklisted by the United States in 2019 as part of a broader effort by the Trump administration to restrict Huawei's access to American-made technology. This was due to concerns that Huawei could be involved in espionage, with allegations that the Chinese government might use its equipment for spying.

What were the immediate effects of the US blacklisting on Huawei?

The immediate effects included major companies such as Google, Intel, and Qualcomm halting their partnerships with Huawei. This severely impacted Huawei's ability to access crucial technologies like Android and Google Mobile Services, which are essential for their smartphones.

How did Huawei respond to the loss of access to American technology?

Huawei responded by accelerating its own technological developments. This included creating an alternative operating system, Harmony OS, and developing its own semiconductor chips, such as the Kirin 9000s, to reduce reliance on foreign technology.

What impact did the US sanctions have on Huawei's financial performance in 2020?

The US sanctions significantly affected Huawei's financial performance. In 2020, the company's growth slowed, with a modest increase of just 3.8%. Their net profit was also much lower than expected, demonstrating the negative impact of the sanctions.

How did Huawei continue to innovate despite the challenges posed by the sanctions?

Despite the sanctions, Huawei focused heavily on research and development, investing 14% of their revenue in R&D. They also worked on advancing 5G technology, artificial intelligence, and cloud computing to maintain their competitive edge.

What is Harmony OS, and how does it differentiate from Android?

Harmony OS is Huawei's homegrown operating system, developed as an alternative to Android. It is built from scratch with Huawei's own programming language and system kernel, and is designed to work across a wide range of devices, without any dependency on Android or Linux.

How did Huawei overcome its reliance on foreign semiconductor suppliers?

Huawei overcame its reliance on foreign semiconductor suppliers by developing its own semiconductor chips, such as the Kirin 9000s, produced by SMIC (Semiconductor Manufacturing International Corporation) in China. Despite initial doubts, these chips have proven to be effective in high-performance devices like the Mate 60 Pro.

What role did the United Kingdom and European countries play in blocking Huawei?

The United Kingdom, along with Germany and France, played significant roles in blocking Huawei's technology. The UK specifically banned Huawei from using its 5G network and set a deadline to replace all Huawei devices by 2027, while other European nations followed suit in tightening their regulations.

How did the launch of the Huawei Mate 60 Pro impact the perception of the company?

The launch of the Huawei Mate 60 Pro, featuring the domestically produced Kirin 9000s chip, demonstrated Huawei's ability to innovate and remain competitive despite the sanctions. The smartphone's strong performance, including 5G support and an advanced camera system, showcased Huawei's technological resilience.

What was the significance of Harmony OS Next in Huawei's strategy?

Harmony OS Next represents a major leap in Huawei's strategy to break free from its reliance on foreign technology, particularly Android. This new version of Harmony OS is fully independent, with its own kernel, and aims to create a self-sustaining ecosystem, including a growing number of compatible applications and devices.