Is the US shooting itself in the foot by banning Huawei?

Status
Not open for further replies.

vesicles

Colonel
I would agree except for the part that Huawei is China's weakness. Actually, Huawei is China's major strength and the US is doing its best to defend against it. If it didn't and Huawei were to enter the US market without prejudice, it would absolutely decimate the competition. The US is totally in a defensive position against Huawei's market prowess.

Well, I don't think Huawei is a strength just yet. If it is, the US would not attack it. It is a young tiger that, everyone knows, will be growing up to become the king of the jungle. The entire world sees it and understands its potential. At the current stage, Huawei is, however, still a teenager that is still weak and can be attacked. That's why the US is focusing everything it's got to attack it. The US would not have attacked Huawei if Huawei has matured to realize its true potential.
 

solarz

Brigadier
I would agree except for the part that Huawei is China's weakness. Actually, Huawei is China's major strength and the US is doing its best to defend against it. If it didn't and Huawei were to enter the US market without prejudice, it would absolutely decimate the competition. The US is totally in a defensive position against Huawei's market prowess.

Well, I don't think Huawei is a strength just yet. If it is, the US would not attack it. It is a young tiger that, everyone knows, will be growing up to become the king of the jungle. The entire world sees it and understands its potential. At the current stage, Huawei is, however, still a teenager that is still weak and can be attacked. That's why the US is focusing everything it's got to attack it. The US would not have attacked Huawei if Huawei has matured to realize its true potential.

It's not so much that Huawei is a weakness, but rather that certain Chinese technological sectors have a weakness. As shown with the ZTE incident, China still does not have mastery over some core technology, and that makes it weak to disruptions in those areas.

In the end, the Western market is not going to "make or break" Huawei. However, if the US were to attack Huawei's supplies of key components, then it will be in real trouble. Of course, to do so without a good reason (ZTE admitted to guilt, after all) will seriously escalate tensions.
 

Biscuits

Major
Registered Member
It's not so much that Huawei is a weakness, but rather that certain Chinese technological sectors have a weakness. As shown with the ZTE incident, China still does not have mastery over some core technology, and that makes it weak to disruptions in those areas.

In the end, the Western market is not going to "make or break" Huawei. However, if the US were to attack Huawei's supplies of key components, then it will be in real trouble. Of course, to do so without a good reason (ZTE admitted to guilt, after all) will seriously escalate tensions.

Huawei explicitly does not outsource through, it’s one of their main selling points.

Just because it isn’t profitable to make something in China doesn’t mean it can’t be made in an emergency.

Attacking each other’s supply chain is not something US wants to do. More US companies rely on China than vice versa.

Not to mention US does not have the technology or infrastructure to refine materials needed for electronics. That’s more of an Achilles heel than unprofitability of some industries in China.

If outside sources are closed down, theoretically all China has to do is to build a new factory in the homeland. Costs might increase by quite a bit (just look at the crazy costs on the new Huawei phone), but the company will only be paralyzed for the duration of factory construction. When they are done, the US will never see those factories again.

US on the other hand will be forced to research a new path of technology, build multiple mines, refineries etc. and all their electronics would be paralyzed during construction, research and training. Of course, once they are done, China will lose them as a customer as well.

I believe the time for US to catch up in rare minerals extraction is significantly higher than the time it takes to prop up replacement factories in China.

That is also why US has been hesitant to issue a blanket ban on Chinese factories in the US despite trying every trick in the book to sabotage.
 
now I read
US ban on Huawei’s 5G technology could be a blessing in disguise for the Chinese brand, say PR experts Updated: Tuesday, 26 Feb, 2019 1:43am
Please, Log in or Register to view URLs content!

  • In one of his latest TV appearances, Ren thanked the US for ‘promoting’ Huawei and referred to Trump administration leaders as ‘great figures’
The US government’s efforts to pressure its allies against using Huawei’s 5G telecommunications network equipment have given rise to allegations of intellectual property theft and close ties to the Chinese government.

They may also have helped entrench the company’s image as the global leader in the technology among some quarters.

“The [media] coverage, seemingly negative by connecting Huawei to security risks, to some extent acknowledges Huawei as a leading global player in 5G technology,” said Andy Wong, associate dean of the business school at Chinese University of Hong Kong. “There’s a chance that Huawei can turn the crisis into an opportunity.”

In one of his latest TV appearances as part of Huawei’s ongoing PR campaign, the company’s 74 year old founder and chairman Ren Zhengfei thanked the US for “promoting” Huawei and referred to Trump administration leaders as “great figures”.

“5G was not known by common people. But now, these great figures are all talking about 5G… And we're becoming more influential and getting more contracts,” Ren said in an interview with CBS on Thursday.

Some of the strongest criticism of Huawei has come from the US, which is also pressing its allies to ban use of Huawei’s 5G equipment.

US Secretary of State Mike Pompeo last Thursday said the US will not partner with countries that adopt Huawei’s technology.

Huawei is making its name desirable through a “charm offensive” branding strategy, said Richard Hillgrove, London-based founder of 6 Hillgrove Public Relations, adding that Huawei is also playing a clever public relations game by making comparisons that really hit home to a Western audience.

For instance, the company said banning Huawei in 5G would be like playing “English Premier League without Manchester United”.

The remark, made by the head of Huawei’s carrier business group Ryan Ding in London on Thursday, was in response to British concerns over the Chinese company’s 5G gear. The UK government is expected to decide this spring which suppliers can provide technology for the country’s 5G networks.

“[Huawei] must continue to handle security fears by appearing totally transparent to lawmakers worldwide and do whatever it takes to achieve this,” Hillgrove added.

As part of its PR campaign the company has opened a Twitter account called #Huaweifacts, which it calls “the official authority on truth and facts about Huawei”.

The account description reads: “We are the light that cuts through the shroud of allegations and assumptions about Huawei.” As of Monday afternoon the account had more than 3,300 followers.

A Huawei spokesperson declined to comment on its publicity strategy.

The company is trying to reshape the global narrative by pushing its usually low profile founder into the limelight.

Ren has given multiple interviews to foreign and domestic media in recent weeks to defend Huawei and his daughter Meng, starting with an appearance on state broadcaster China Central Television, his first-ever TV interview. Ren has maintained a consistent message: Huawei does not spy for the Chinese government and will not share data with Beijing.

“Huawei, in general, is more cool headed in dealing with recent controversies,” said Zhang Haizhou, a Hong Kong-based consultant for Swedish communications firm Kreab. He said the company has been consistent in its global communications by showcasing the confidence it has in its technology and products through media interviews.

“It’s a proper public relations or communications strategy that would help Huawei, not bad press,” he said.

Huawei has been making a huge effort in recent years to position itself as a global brand after gaining household name status within China.

To raise its international profile it hired Scarlett Johansson and Gal Gadot to promote its P9 smartphone last year. For the US launch of the flagship phone Huawei had a special mission for Gadot, one of the highest-paid and highest-grossing actresses of 2017: teach Westerners how to pronounce Huawei.

“Remember, it’s pronounced Wow Way,” said Gadot, the Israel-born actress best known for her role as the superhero Wonder Woman.

But the 5G equipment industry is different from the consumer facing market, Wong said, and the business-to-business 5G market is arguably more important to Huawei than smartphones.

“The appearance of Huawei’s founder is an important gesture that Huawei is viewing accusations around its 5G [technology] as its utmost priority, to send its own message to important markets including Germany and the UK who are still on the fence regarding their decision to ban Huawei’s 5G gear,” Wong said.

While the publicity raises the brand’s profile “it may further the paranoia around the products from western consumers who may not have the full picture”, said Mark Tanner, founder and managing director of Shanghai-based marketing firm China Skinny, adding that he was sceptical of the adage “any publicity is good publicity”.

On Friday US President Donald Trump said in a tweet that he wanted the US to “win through competition, not by blocking out currently more advanced technologies”.

Trump is afraid his strategy in handling Huawei could backfire and hurt his re-election chances, so his recent change of attitude towards Huawei is perhaps more due to his own political calculations than the result of Huawei’s lobbying or PR, according to Wenshan Jia, a professor of global communication at Chapman University in California.

“It is very un-American to beat up on a global company like Huawei simply because it is outdoing the US in 5G,” he said.
 

gelgoog

Brigadier
Registered Member
I think this will force the Chinese manufacture of critical electronics components to be done at an even faster pace than what was happening already.

The USA is in a really weak position with regards to this issue as well unlike what some people think. Most of the production chain is in the Asian region. Much of the major infrastructure in electronics manufacture is either in China on in short range strike distance by China.
 

Biscuits

Major
Registered Member
now I read
US ban on Huawei’s 5G technology could be a blessing in disguise for the Chinese brand, say PR experts Updated: Tuesday, 26 Feb, 2019 1:43am
Please, Log in or Register to view URLs content!

  • In one of his latest TV appearances, Ren thanked the US for ‘promoting’ Huawei and referred to Trump administration leaders as ‘great figures’

There’s also this: the CPC itself most likely isn’t that fond of advanced technology being exported to dangerous countries. While Huawei itself has monetary interest in selling everywhere, the state has exceedingly little to gain from kicking down doors for Huawei and might even stand to lose.
 

Nutrient

Junior Member
Registered Member
I would agree except for the part that Huawei is China's weakness. Actually, Huawei is China's major strength and the US is doing its best to defend against it. If it didn't and Huawei were to enter the US market without prejudice, it would absolutely decimate the competition. The US is totally in a defensive position against Huawei's market prowess.

I would also say that the U.S. -- and Trump in particular -- hates Huawei for what it is: a proof that a successful $100 billion corporation does not have to be owned by an oligarch. (For those who don't know, Huawei is employee-owned; the founder Ren Zhengfei has less than 2% of the stock.)
 
Status
Not open for further replies.
Top