Reporters Observed HUAWEI'S "Combined Boxing" Under Normal Competition.

Will the US collapse if the United States crackdown?

The first thing to point out is that the United States is so attacking HUAWEI not to defeat the HUAWEI company by using national strength, but to achieve the goal of maximizing its own interests by suppressing the Chinese science and technology industry chain. This is a game involving Sino US technology and trade, including political interests and industrial discourse rights. At the same time, the United States also hopes to strengthen its high-end manufacturing industry and maintain the absolute core position of advanced technologies such as semiconductor 5G.

Faced with the heavy pressure of the United States, HUAWEI also counterattacked, showing the response to the combined boxing. Gan Jun photo

HUAWEI has responded ahead of schedule.

Although the US new regulation is directed at HUAWEI's core department, Hass and core chips, the representative plant, TSMC and so on, it is too early to draw a conclusion, because the new regulation still has a 120 day buffer period, and many of the details of the new regulation are not clear, and the parties are still soliciting opinions. It is understood that at present, HUAWEI and many related companies are still assessing the impact, looking for solutions, and accelerating the protection of HUAWEI's supply. In the face of such a complex situation, we need to observe the whole dynamic.

Moreover, if HUAWEI is so easily defeated, the United States will not choose HUAWEI as its target and carry out such a strong long-term sanction against it. But the cruelty of reality is that the United States is the maker of game rules, especially this year.

For foreign manufactured products containing American ingredients, it is necessary to comply with the two provisions of the export management regulations, follow the the de minimis rules, or comply with the foreign direct product rule (the foreign-produced direct product rule).

As for the shallow understanding of reporters, the minimum proportion rule is to restrict supply from hardware, software and other product levels. For example, the contents of the United States can be exported to HUAWEI less than 25%, while the foreign direct product rules can extend to the technical links of the production chain, and can be precise to HUAWEI only. After modifying the rules, HUAWEI uses the specific software and technology of the United States. Products that are designed and manufactured are subject to control. For example, in the process of producing chips designed by HUAWEI, the use of specific American equipment, software and technology is also subject to control.

Faced with the heavy pressure of the United States, HUAWEI also counterattacked, showing the response to the combined boxing.

Before 2019, HUAWEI began to increase the inventory preparation of components. Data show that HUAWEI's raw materials accounted for 37.5% of the inventory in 2018, and the proportion of inventory accounts for 19.5% in 2019. It is reported that HUAWEI also made a large number of orders in advance to TSMC, SMIC and other suppliers. In the short term, HUAWEI anticipate and plan ahead, and how to balance between high inventory and operating pressure also requires test capability.

Look at last year's famous "spare tire". Under the many years of R & D investment of Hass, HUAWEI has some ability to replace itself. We will find that many chips were released for the first time last year, but in fact, HUAWEI has been using it internally for a long time. This is the result of accumulated thick and thin results. At the same time, HUAWEI itself adopts multi supplier strategy, and its cooperation with non US suppliers is also increasing. In addition to diversifying the supply of chip products, HUAWEI has been pushing the upstream ARM structure of the chip, especially the CPU architecture of the server side, and "A" is slowly advancing. Moreover, HUAWEI is also forced to make up classes at the software level, and HMS terminal cloud services and Hong Meng operating system have accelerated to the stage.

From the overall business level of the company, HUAWEI has emphasized two new businesses in the past two years, one is the cloud computing market, and the two is the smart car market. Among them, the cloud computing market has launched many B oriented computing products around Kun Peng and rising chip. This is the layout of big data, computing and AI. Smart car is a new BU department. Last year, it emerged as HUAWEI's third eye outside the operator and terminal business. It is also a new piece of HUAWEI's determination to Rio Tinto. At the same time, for the original business, HUAWEI is also constantly adjusting.

In terms of public opinion, Ren Zhengfei, the founder of HUAWEI, has appeared frequently, leading HUAWEI to open and transparent through various forms such as media interviews, coffee interviews and so on.

HUAWEI is more open

With all kinds of efforts, HUAWEI continued to grow in 2019, and HUAWEI seems to have responded in the short term, but HUAWEI is facing the normalizing competition that the United States has ignited. From the export control reform act of 2018, the "emerging and basic technologies" were included in the control items, and then the list of HUAWEI was added to the list in 2019, and then the export control regulations were amended two times in 2 months in 2020. The export control ordinance covers not only control items but also many stringent export and export regulations, among which there are many complicated designs of "set in sets" and "ring central".

HUAWEI is also doing a long-term response. With the upgrading of the new rules in the US, how to upgrade HUAWEI's response this year?

From the recent situation, the voice has been heard at the national level. In May 17th, the Chinese Ministry of Commerce said that the US side used state power to abuse export control under the pretext of so-called national security, and continued to suppress and curb specific businesses in other countries. It was a violation of market principles and fair competition, a disregard for the basic rules of international trade and a serious threat to the safety of the supply chain of the global industrial chain. China will take all necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises.

In the opinion level, perhaps HUAWEI should communicate more freely in the global market and continue to let more people understand HUAWEI. Ren Zhengfei may not be enough to come to the stage many times. The general of all sides of the company can also make more voice and carry out the overall battle. It not only shows that HUAWEI has such a wise person as Ren Zhengfei, but also can display a more three-dimensional talent system and management mode.

At the same time, HUAWEI should speed up the integration of the domestic industrial chain, unite all forces that can be united, and cooperate with foreign partners, of course, continue to strengthen cooperation. HUAWEI has been working hard, but it is impossible for a company to enter every industry chain. Therefore, it is very important to cooperate with anyone. Recently, most of the public opinion mentioned is SMIC and purple light group. They are catching up with technology and have already worked with HUAWEI. Whether their supply will be restricted by the US is uncertain. In any case, it is urgent to speed up the training of domestic industry chain and better support each other. Many industry personages also told reporters that the semiconductor industry needs to open and cooperate, rather than just emphasize autonomy, and how to develop and form its core characteristics in domestic semiconductor needs more discussion.

Finally, I want to reiterate that the domestic technology industry represented by HUAWEI is facing normal and persistent competition, and the collision of borders and deliberate targeting will continue. Last year is neither a starting point nor a final destination this year.

British politician Churchill has a famous saying: "Now this is not the end". It is not even the beginning of the end. But it is, perhaps, the end of the beginning. "

"This is not the end, nor even the prelude to the end. Now, it may just start a prelude. "

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