The 2019 U.S. Assault on Huawei
In 2019, the United States launched a full-scale attack on the Chinese technology giant, Huawei Technologies, aiming to eliminate it, as described by a senior official in the National Security Council during Donald Trump’s administration. At the time, the Trump administration was intensely focused on Huawei, which had emerged as a global leader in 5G technology and was on the brink of dominating the global smartphone market.
The Provocation and Its Implications
The assault on Huawei, China’s most significant tech company, was seen as a blatant provocation against the Chinese government, America’s most critical economic partner. This conflict jeopardized the possibility of a trade agreement beneficial to both parties. However, former Trump advisor Steve Bannon emphatically stated that crippling Huawei was ten times more crucial than any trade deal with China. Faced with this unyielding American determination to dismantle Huawei, the company’s founder and CEO, Ren Zhengfei, told his employees that Huawei had entered a war. This war has now raged for over five years.
Early Signs of Huawei's Collapse
Initially, indicators suggested that Huawei was on the verge of collapse due to the severe American sanctions, which struck at the company’s most vulnerable points. Huawei struggled, barely surviving until it began a remarkable resurgence in 2023 that alarmed Americans and raised questions about the efficacy of the sanctions. Not only had Huawei not died, but it was also on its way to reclaiming its stolen glory. The first major surprise came in August 2023, followed by another in April 2024. So, what exactly happened, and how did Huawei manage to continually astonish the Americans?
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The Strategic Meeting of World Leaders
In November 2023, Chinese President Xi Jinping visited the United States to attend the Asia-Pacific Economic Cooperation (APEC) Forum in San Francisco. During this visit, President Xi met with his American counterpart, Joe Biden. On the sidelines of this meeting, Biden told reporters, “We and China are in a competitive relationship,” though this statement did not fully convey the intensity of the ongoing battle between the United States and China in the technology sector. The U.S. continually attempts to deliver fatal blows to China’s tech industry, aiming to either eliminate it or at least slow its progress. In response, the Chinese have bolstered their defenses as much as possible against what they describe as unfair competition.
Huawei's Unexpected Technological Breakthrough
In March 2023, Huawei faced ridicule and skepticism when it revealed its new phone, the Mate 60, which only supported 4G technology. Many questioned why China would produce a 4G phone in 2023, while competitors like Apple and Samsung were manufacturing 5G phones. However, the reality was that China had long been capable of producing 5G phones but was blocked from obtaining the necessary components due to American sanctions. The U.S. prevented Taiwan’s TSMC and South Korea’s Samsung from supplying chipsets designed by Huawei’s HiSilicon. Additionally, they were restricted from acquiring other crucial components needed for 5G phone production.
The Mate 60 Pro: A Game Changer
However, the tides began to turn in August 2023, when Huawei surprised the world, especially the U.S., with the release of the Mate 60 Pro, featuring a 7-nanometer processor made by China’s Semiconductor Manufacturing International Corporation (SMIC). This development was significant because it was believed that the most advanced processor SMIC could produce was 14nm. China’s ability to manufacture this processor raised doubts about the effectiveness of the sanctions imposed on Huawei.
U.S. Reactions and Miscalculations
The U.S. Secretary of Commerce, Gina Raimondo, downplayed the significance of the Mate 60 Pro’s Chinese-made 7nm processor, trying to reassure U.S. lawmakers that it was a one-off event. Nonetheless, the rapid sales of the Mate 60 Pro suggested otherwise. In the first six weeks, Huawei sold 1.6 million units of the Mate 60 Pro, positioning itself as a formidable competitor to Apple in the Chinese market. By the first quarter of 2024, Apple’s market share in China had dropped to 15.7%, down from 20% the previous year, while Huawei’s share increased to 15.5%.
The Pura 70 Series: Analyzing the Impact
Huawei’s resurgence was further bolstered by the launch of the Pura 70 series of smartphones in April 2024. These smartphones, despite being expected to enter the market with little fanfare, garnered worldwide attention due to their Chinese origins. Analysts closely examined these phones to determine their components and the extent of China’s technological advancements.
Technological Self-Sufficiency and Component Analysis
Upon market release, tech analysts were quick to dissect the Pura 70 series. They found that most of the semiconductors in the series were locally manufactured in China. The flagship models, such as the Pura 70 Pro Plus and Pura 70 Ultra, featured the 7nm Kirin 9010 processor, designed by HiSilicon and produced by SMIC. This processor is an advanced version of the Kirin 9000S used in the Mate 60 Pro. The fact that China managed to produce this processor without the advanced EUV machines from Dutch company ASML, which are restricted from being sold to China, was a significant technological breakthrough.
Overcoming American Obstacles
The analysis revealed that the Pura 70 Pro Plus and Pura 70 Ultra utilized NAND memory made by the Chinese company YMTC, another entity under U.S. sanctions. This marked a critical advancement since the previous model, the Mate 60 Pro, used NAND memory from South Korea’s SK Hynix. Overall, the Pura 70 series showed a substantial increase in the proportion of locally sourced components, highlighting China’s strides toward technological self-sufficiency.
Future Prospects for Huawei
The U.S. Department of Commerce responded by revoking licenses that allowed Intel and Qualcomm to sell chipsets and processors to Huawei. However, this move is unlikely to significantly impact Huawei’s momentum. Analysts predict that Huawei will sell over 10 million units of the Pura 70 series this year, potentially reclaiming its position as the largest smartphone seller in China.
The Rise of Harmony OS
Huawei’s resilience is also evident in its ability to develop an alternative to Google’s Android operating system. Huawei’s Harmony OS now has over 800 million users, demonstrating that the company has effectively bypassed another major U.S. obstacle. With the Chinese market gradually slipping from American dominance, it seems only a matter of time before Huawei reclaims its global leadership position, which it held in 2020 as the world’s largest smartphone seller.
Conclusion: Huawei's Resilient Spirit
Despite continuous efforts by the U.S. to stifle its progress, Huawei’s ability to adapt and innovate has kept it alive and thriving. This resilience brings to mind a statement by Paul Clark, head of the Chinese technology and communications consulting firm BDI, who remarked to the Financial Times in 2020, “How can someone kill Huawei? Huawei is like a worm whose head is cut off but continues to move.” Indeed, despite numerous attempts to deliver fatal blows, Huawei remains alive and on the path to recovery. The Huawei of today is more self-reliant and better prepared to challenge the U.S. and compete in sectors that will undoubtedly cause further concern in America.
In conclusion, Huawei’s story is a testament to the company’s tenacity and innovative spirit. As it continues to defy expectations and overcome obstacles, Huawei is poised to reclaim its position as a global tech leader, much to the dismay of its competitors. The tech world will be watching closely as Huawei forges ahead, turning challenges into opportunities and emerging stronger than ever.
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