Interview With Ren Zhengfei, Founder And CEO Of Chinese Telecom Giant Huawei | TIME
https://youtu.be/Nl2jCWDwE8w
BY imposing restrictions on Huawei Technologies Co, the administration of US President Donald Trump may force the Chinese company to do something that no one in tech has dared to do for a long time: Challenge Google’s control of the Android universe, which earned the US company a huge European fine last year.
Huawei faces two big threats from US technology export restrictions. One is the loss of American components for its products, a blow it cannot parry immediately if it wants to keep making top-flight smartphones.
The other is the potential withdrawal of its Android license, which would stop Huawei from preinstalling the latest Google-approved version of the operating system and some key services Western users see as necessary - above all Google’s Play Store, the biggest repository of Android apps.
This particular obstacle could, under the right conditions, turn into a Huawei strength in Europe, a market that accounts for almost a third of the company’s smartphone unit sales, according to market analytics company IDC.
Last July, the European Commission fined Google €4.34bil for imposing illegal restrictions on smartphone manufacturers. In exchange for the right to preinstall the Play Store, they had to agree, among other things, not to sell devices running versions of Android not approved by Google: so-called Android forks. These operating systems are developed from the open source version of Android, which anyone can use, including Huawei if the US bans it from using American technology. Amazon.com Inc’s Fire OS is the best-known Android fork today, though there are others around.
The commission wrote that by obstructing the development of Android forks, Google and its parent company Alphabet Inc “closed off an important channel for competitors to introduce apps and services, in particular general search services, which could be pre-installed on Android forks.”
In its ruling, it made a strong case for forks as platforms for Google-independent innovation that, if they were allowed to spread widely, could have curbed Google’s market dominance in various areas.
Google has appealed the ruling, but it has also removed restrictions on handset makers to avoid further fines. This, however, hasn’t led to the proliferation of alternative platforms based on open-source Android: Big phone makers are locked into comfortable relationships with Google and see no need to experiment. Days after the European Union fined Google, Huawei, at the time the biggest phone manufacturer that provided an easy opportunity to install alternative Android-based operating systems on its devices, ended the programme without explanation.
If Google takes away the Android license, it’ll yank Huawei out of its comfort zone. The company isn’t likely to give up the European market without a fight, after spending billions of dollars developing a customer base. Consumers in some European countries now appear to be put off Huawei by the US attack, although, paradoxically, it appears to have fuelled the brand’s popularity in France.
France for Huawei
Percentage* of consumers who say they'll consider buying a Huawei device when they're next in the market for a smartphone
Source: YouGov BrandIndex
The company has said it developed its own operating system (likely an Android fork), and it’s been trying to lure developers to its app store.
If the US stops Huawei from preinstalling the Play Store, the Chinese manufacturer probably won’t spend much time educating consumers on how to install it on their own (the way people do now with phones bought in China).
That’s not what most users expect on a new, expensive device. Instead, Huawei will want to offer developers an easy way to sell apps not just in the Google store but also in one preinstalled on Huawei devices - to “multi-home” them.
Huawei hasn’t been eager to get into an open confrontation with Google, which was a valued partner.
But a breakup ordered by the US government changes things. Huawei, with plenty of resources of its own (and most likely with support from the Chinese government, determined to fight back against the US), could soon be investing heavily in the marketing and improvement of an Android fork. Given Huawei’s marketing potential, the effort isn’t necessarily doomed. And it could boost Asian and European developers deterred from competing in some areas - such as mapping, video services or even search - by Google’s enormous power.
Given the pushback in recent years against US tech companies’ relentless data collection and the widespread mistrust of Trump’s administration in Europe, there could well be demand for a Google-free phone from a major manufacturer known for superior hardware.
I know I’d be interested, and the French would probably lap it up, judging by their reaction to the US threats. The EU regulators, too, might be intrigued to see evidence that perhaps the Google antitrust ruling didn’t come too late.
This is something of a utopian scenario, I know. Huawei may never need to go on the warpath against Google: The US and China could strike a trade deal that would make the specter of restrictions go away.
Or, if Huawei is banned from buying US technology, it could find itself unable to produce marketable phones for a while. And, of course, it is a company from Communist China, making it difficult for European regulators, and even for private developers, to embrace it as a savior from the overly dominant US tech companies.
Monopolies in tech don’t last forever, however.
Sometimes they just need a push to start showing cracks. If the US moves against Huawei, it might be unknowingly giving such a push to Google in the smartphone market. — Bloomberg Viewpoint
But it needs a lot of time. During this process, China
cannot avoid paying a price and will have a difficult time. But Huawei
still has a domestic market of more than a billion Chinese people and
the market of the Third World countries. When the Trump administration
cracks down on Huawei, the US also goes through hard times. The final
victory will certainly be China's, but China must have adequate
determination and endurance.
KUALA LUMPUR: It looked like the start of semiconductor manufacturers’ nightmare when US President Donald Trump fired another salvo in the escalating US-China trade war by blacklisting China’s mobile phone equipment giant, Huawei Technologies Co Ltd.
The act sent shock waves along the supply chain of the global semiconductor industry, sparking strong sell-offs in semiconductor companies’ shares worldwide. The same was seen in Malaysia, which caused the Bursa Malaysia Technology Index to sink 3.47% on Tuesday — the biggest loser among the indices — led by companies linked to the industry.
But it may not be a losing battle in the long run, at least not for Malaysian companies. The trade diversion that will arise from Huawei’s ban in the US, which effectively cuts off US chipmakers from the supply chain of Huawei — the world’s largest provider of networking gear and the second-largest smartphone vendor — may benefit domestic players here.
Pentamaster Group Bhd co-founder and chairman Chuah Choon Bin told The Edge Financial Daily that he expects the group’s telecommunications segment to see a 20% to 30% decline in sales as a result of Huawei’s blacklisting in the US. The contraction may take away some 18% in total sales it anticipates for the year.
However, Chuah said Pentamaster may also stand to benefit from the ban, as he expects China will become more aggressive in ramping up their product developments in the face of what happened to Huawei.
So, he sees a silver lining for the group in the form of trade diverted from US chip suppliers to those located elsewhere, possibly in Malaysia, where Pentamaster supplies chip tester equipment or automated tester equipment.
As such, Chuah does not expect Pentamaster to be greatly affected by Huawei’s ban in the US. In fact, the eventual tally may show Pentamaster gaining from the situation.
Pentamaster was among the technology counters on Bursa Malaysia that took a beating on Tuesday, following the news on Huawei’s ban.
Its shares sank as much as 29 sen on Tuesday to RM4.05, before easing to settle at RM4.10, down 24 sen or 5.53% at market close. It was one of the top losers in Bursa Malaysia’s Technology Index, which retreated to 30.9 points, dragging the FBM KLCI down 0.1% to close at 1,603.74.
Other semiconductor stocks that were badly hit include: Inari Amertron, which fell 10 sen or 6.67% to RM1.40; Mi Technovation Bhd, which was down 11 sen or 6.43% to RM1.60; Globetronics Technology Bhd, which retreated 10 sen or 5.92% to RM1.59; and Frontken Corp Bhd, which fell eight sen or 5.63% to RM1.34.
Nonetheless, the rebound on Wall Street among semiconductor stocks that were bogged down by fears over the trade war’s ripple effects, raised hope that its peers in Malaysia may follow suit, if the upward trend seen on Tuesday is sustainable.
The share price recovery was fuelled by the temporary 90-day reprieve that was granted to Huawei on Monday. The initial ban was to take effect on May 20. The Philadelphia Semiconductor Index gained 2.1% to end a three-day slump on Tuesday.
“The disruption to (the) supply chain will definitely be negative in the short term,” said an analyst who tracks the semiconductor industry, citing as example people who are considering switching mobile phones after the news that Alphabet Inc’s Google would be cutting off the supply of hardware and selected software services to Huawei once the 90 days is up.
“The trade war seems like breaking the supply chain into two ... this is going to be bad in the short term. But if China cannot get their supply from the US, they are likely to turn inwards ... [or to] countries like Malaysia,” the analyst added.
A Singapore-based fund manager commented that Malaysian tech companies presently do not have much to do with Huawei. But the ban is causing everyone in China to sit up and rethink their supply chain strategy. “In short, no one will believe in the US [anymore]. It is not a reliable and credible supplier. What it means is that it is positive for some of those tech companies in Malaysia that can offer what the Chinese need,” he said.
Some analysts, however, have a more cautious stance, saying it is too early to draw any conclusions on the matter given that it is hard to predict any retaliatory moves the two countries could make.
The lingering concern remains that any slowdown in international trade volume will not augur well for the world economy, including Malaysia. Meanwhile, some have pointed out that the valuation of Malaysian semiconductor stocks are relatively higher compared with elsewhere.
China-U.S. trade tensions | Mideast tensions take turn for worse
https://youtu.be/eQbQbvGBDaM
封杀华为 发难大疆 美滥用国家力量打压中国企业!| CCTV中文国际
https://youtu.be/dtT0rHgJ9-I
Growing US pressure won't force China to submit
The US Department of Homeland Security warned that drones pose a
potential information risk because they contain components that can
compromise users' data and share information on servers other than
users.
Since nearly 80 percent of the Unmanned Aerial Vehicle
(UAV) drones in North America are produced by China's Dajiang Innovation
(DJI), a Shenzhen-based company, analysts generally believe that
tarnishing DJI's reputation may be laying the groundwork for taking
actionsagainst DJI.
DJI is the world's largest producer of
civilian drones and is said to control more than 70 percent of the
world's civilian drone market. The drones it produces are not only good
in quality but also cheap. Many products are under $1,000, so they are
popular and increasingly versatile.
The US military is also a DJI
drone user. The use of DJI drones by the US military has not completely
stopped following the controversy over its information security. This
shows that while the US has real concerns about the information security
risks of DJI UAV , there is no real evidence to support such concerns.
The
US Department of Homeland Security raised the issue of the information
security risks of UAV to increase leverage and pressure on China after
the US decision to cut off supplies to Huawei. It seems Washington is in
a hurry to press China to make concessions and reach a trade deal at an
early date beneficial only to the US.
The vast majority of users
in the US use DJI drones in non-classified areas. The airspace over
sensitive US institutions is closed to drones and there is another set
of security measures that have nothing to do with the use of DJI drones
in the US market. The prevention of forest fires, assistance with
construction layouts, and the development of express delivery services
to remote areas are obviously not the direction that intelligence
agencies are aiming for. It is hard to believe that DJI has an incentive
to engage in "intelligence activities" at the risk of being shut out of
international markets.
The US is abusing the concept of national
security. It is the US that was caught a few years ago spying on the
leaders of its allies. It is now saying that Beijing's intelligence
threat is everywhere. A big part of it is putting on a show. It may be
partly because the US does install a lot of "back doors" into its
electronic exports, Washington thinks other countries will do the same.
China
will not fall into the trap to make unconditional compromises as
Washington increases its pressure. If the US cracks down on Chinese
companies, American consumers and suppliers will also suffer losses.
The
US is having a profound effect on the global economic order by abusing
national security and trampling on commercial principles. Current US
administration is destroying the reputation and national image that
generations of Americans have built. Such arrogance and hegemony are by
no means good signs for the US..
Chinese people do not know whether we should call US
approaches hegemonic politics or profiteering politics. But in short,
they are crooked means. The threat of tariffs will not work. Neither
will US threats against Chinese companies create a shock wave against
China. The US is picking a wrong opponent at a wrong time. It will find
no way of crafting a good result from a strategic mistake.
Huawei products should not be linked to politics: Ren
U.S. ban not to affect Huawei's high-end and 5G products: Ren
https://youtu.be/Yz6tKCEhvqA
Huawei is a commercial company, and the use of its products is a choice for consumers based on their likes and should not be linked to politics, said Ren Zhengfei, founder and president of Huawei Technologies Co. Ltd. on Tuesday.
Ren made the remarks after the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce put Huawei and its affiliates on an "Entity List," which would restrict the sale or transfer of U.S. technologies to the company. The ban has triggered opposition from markets worldwide.
Huawei maintains mass production capacities for specific key components, including chips, and the U.S. ban will not result in negative business growth, Ren told reporters.
The telecommunications giant projected slower but positive growth this year.
Huawei posted a 39 percent year-on-year revenue growth in the first quarter of the year. The growth has slowed slightly in the second quarter, but the slowing will not hurt the company, Ren said.
"Huawei had made preparations for the extreme situations even before the Chinese Lunar New Year," he said.
He noted, however, that it would not reject the U.S. supply chain, citing Huawei's announced purchase of 50 million chips from Qualcomm in 2018.
"As long as the U.S. government allows U.S. companies to export the components, Huawei will continue to buy while sticking to its own research and development," he said.
Ren said he appreciated the support of a large number of U.S. components suppliers over the years, and they are also lobbying for the easing of U.S. government-imposed restrictions.
He said Huawei is also in talks with companies like Google for potential remedy solutions, he said.
China can hardly make the US clear about all these
issues. The only option for China is to do its own things well and
accept the fact that the China-US trade war will last in the days that
follow. As China becomes stronger, it will eventually see the US willing
to reflect upon itself.
The overall output value of China's satellite navigation
and positioning services industry reached 301.6 billion yuan ($43
billion) in 2018, up 18.3 percent on a year-on-year basis, with the
country's home-developed BeiDou satellite system contributing 80 percent
to the core production value, reads an official white paper.
China sent a new satellite of the BeiDou Navigation
Satellite System (BDS) into space from the Xichang Satellite Launch
Center in Sichuan Province at 11:48 p.m. Friday.
Trump Lies About His Trade War with China: A Closer Look
https://youtu.be/rG9-8wmtOUM
Huawei 5G LIES!
https://youtu.be/IfxfdHJ3k9Y >
Why does the U.S. expect China to accept an unequal treaty?
https://youtu.be/ez2SzXW5Q_8
US relies on deception and is most afraid of protracted trade war
The economic data of China and the US for the month of April was not good. There are divergent views on the reasons for China's declining retail sales growth rate and especially, its industrial output growth. But amid China's overall expectations that a trade war could have some impact on the economy this year, one month's unsatisfactory data is socially and psychologically affordable.
The problem for the US is that the government won't admit that a trade war would have a negative impact on its own economy. Instead, the Trump administration advocates that tariff revenue is a good option for the US to boost economic growth.
In fact, Chinese society's understanding of the current situation is very objective, and the official and civil understanding is echoed by each other. Chinese society is confident in the country's broader economic prospects, based largely on the country's enormous economic potential and the government's ability to take strong measures to minimize the negative impact of a trade war and contain possible unexpected risks. In addition, it is believed that as long as China resists the pressure, the US will sign the agreement with China sooner or later, because the US also feels uncomfortable.
Most of those tariffs will be shared by American importers and consumers, and it is against the common sense of international trade for the US government to insist that tariffs are paid only by Chinese export enterprises.
If the White House now publicly acknowledges the negative impact of the trade war on itself and is still able to unite the US society, then the trade war will be even more difficult for China to deal.
The US side has created a false impression that it is strong, but in fact it is weak on the inside. If the US side wants to fight, we may as well do so. China also has modest demands, namely, to safeguard its sovereignty and uphold the principle of equality in China-US relations.
In a worst-case scenario, China would suffer losses which it could still afford. The great leeway of our society can certainly have a considerable damping effect. Under better circumstances, we can quickly build resilience so that China's economy will once and for all reduce its excessive dependence on the US market, and people's interests are better protected in the long run.
The US trade war with China will build up into a political bubble as it diverges from reality. We just need hold our breath, and try to do our own thing as much as possible. It will gradually deflate on its own.
The pain inflicted on China is temporary. But what the US
has to face is growing long-term pain. The so-called decoupling with
China is very likely the real beginning of US decline.
While China has a quite different political system and
ideology than Europe and Japan, China has given both much more respect
than they have received from the US. Multipolarization and
multilateralism should be the most important principles of the world. No
country's interests are allowed to override those of others, and no
nation should determine the future of the globe in a unilateral way.
China, Europe, Japan and other countries share the same interests on
this issue
The results of Europe's scrutiny on products by China's
Huawei Technologies Co., Ltd. have proven the company's "innocence," a
Chinese Foreign Ministry spokesperson said Monday.
Huawei founder Ren Zhengfei said a 90-day temporary license
the US granted is not that meaningful for the company, as it is well
prepared and has kept its core technologies intact.
Huawei
Technologies CEO Ren Zhengfei says Huawei would be "fine" even if
Qualcomm and other American suppliers would not sell chips to Huawei,
because "we have already been preparing for this."
https://youtu.be/xcZS8QYky34
Chinese telecom giant will resist Washington pressure, Ren Zhengfei says
SHENZHEN, China -- Huawei Technologies' founder and chief executive blasted the Trump administration's decision to add his company to a government blacklist, insisting the Chinese telecom equipment maker has done nothing illegal.
"We have not done anything which violates the law," CEO Ren Zhengfei told Japanese media at company headquarters in Shenzhen on Saturday in his first interview since the U.S. decision to restrict trade with Huawei.
Ren indicated that his company will continue developing its own chips to lessen the impact of the ban on its production. Ren said it would be "fine" even if Qualcomm and other American suppliers would not sell chips to Huawei. "We have already been preparing for this," he said.
Huawei unit HiSilicon Technologies, which mainly designs core processor chips, has made similar allusions to plans for dealing with a potential disruption in supply. In a recent open letter, President Teresa He Tingbo wrote, "We actually have foreseen this day for many years, and we do have a backup plan."
Echoing his tougher tone in recent months, Ren said his company will not be dictated to by Washington. "We will not change our management at the request of the U.S. or accept monitoring, as ZTE has done," he said.
The U.S. deployed a similar ban against ZTE last year, pushing the Chinese telecom company to the brink of bankruptcy.
Ren said the impact of the U.S. ban on Huawei's business will be limited, and expressed confidence in its longer-term outlook. "It is expected that Huawei's growth may slow, but only slightly," said Ren, citing the potential of annual revenue growth undershooting 20%.
"Policies that threaten trading partners one after another rob companies of risk-taking attitudes, and the U.S. will lose credibility," said Ren. On the other hand, he sees U.S. President Donald Trump's trade policies providing the impetus for Chinese economic reforms. "I would even suggest that the environment will improve," said Ren.
Huawei's chief shot down the prospect of producing 5G equipment on American soil. "Even if the U.S. asks us to manufacture over there, we will not go," said Ren.
Huawei procures around $67 billion worth of components every year, with roughly $11 billion coming from U.S. suppliers. Huawei depends especially on American parts makers for semiconductors, and it is believed that the company could face problems going forward manufacturing smartphones and telecommunications equipment. - Nikkel Asian Review
HiSilicon has released a series of chips geared for artificial intelligence under the name Kirin, which are currently used in some of Huawei's smartphones. The company has boasted that some Kirin chips can compete with the likes of Qualcomm Inc. and Nvidia Corp.
The latest ban on Huawei reflects Washington's dangerous
Cold War mentality that will lead to further US-China decoupling, which
is also casting a shadow over stalled trade talks between the two
countries and will hurt the global tech industry, Chinese analysts said
on Thursday.
The US cannot strangle Huawei, nor will it be able to
contain the development of China and deprive the 1.4 billion Chinese
people of their development rights.
The Conference on Dialogue of Asian Civilizations (CDAC) begins Wednesday in Beijing with over 2,000 government officials and representatives from 47 Asian countries and other participating regions in attendance.c
The event is yet another diplomatic effort by China following the 2nd Belt and Road Forum for International Cooperation and the 2019 Beijing International Horticultural Exhibition.
The CDAC marks the first time Asian countries have gathered for cross-cultural exchange, adding to the event's historical groundbreaking significance.
The necessity of the CDAC is highlighted by Western reaction. Some Westerners, trapped in geopolitical thought, view the event as a competition between China and the West.
This way of thinking leads to estrangement and conflict between civilizations, turning dialogue into an increasingly global concern.
At this juncture, whomever stands up and to promote dialogue and exchange among civilizations will create future benefits for the following centuries. It's not an accident the CDAC was born in Asia and initiated by China.
Asia is a vast continent with diverse civilizations and religions. If different entities can achieve inclusiveness, mutual learning, and become closer with one another, it will be a success over the experiment of unilateralism.
With uneven development and as the former victims of the Cold War, Asian countries are concerned with equality and independence, the foundation required for civilizations to achieve peaceful coexistence.
China is the most powerful country in Asia, opposing hegemonism and confrontation while advocating harmonious coexistence and cross-cultural learning. CDAC is part of China's endeavor to realize what that entails, and only time will prove the significance of China's exploration.
As the birthplace of modernization and globalization, the West occupies a natural position in the international political arena. Many Westerners are obsessed with Western style centralism. However, in recent years, they have seen the rapid development of non-Western countries, and Asian countries in particular, which has made them sensitive and narrow-minded.
Western vigilance, mistrust, and hostility toward foreign civilizations only agitate their differences and contradictions, and can ignite bloody conflicts.
Globalization is at an inflection point. At a time when China is trying to bridge the gaps between different civilizations, the US is in search of border wall funding. While China expands and opens up in more areas, the US closes its door to technological, educational, and social and science exchanges.
A rift between Western civilizations and non-Western civilizations is unbearable to today's world. Whether Western civilization can be more inclusive will determine the course of globalization. Any far-sighted, rational-thinking person will be excited with the progress achieved during the CDAC.
Adapting to modern times is the Asian continent's mission and China is willing to work with Asian countries to achieve a harmonious coexistence.
Cultural superiority is stupid and disastrous, Chinese President Xi Jinping warns as US tensions persist
Chinese President Xi Jinping warned that one
civilisation forcing itself on another would be “stupid” and
“disastrous” as he called on nations to respect each other on Wednesday,
with Beijing embroiled in rising confrontation with the United States
on trade as well as military and cultural matters.
In a
speech at the start of the Conference on Dialogue of Asian
Civilisations – designed for Beijing to show its soft power – Xi did not
mention any nation by name, but said nobody should regard their race as
superior.
The speech came two weeks after US
State Department director of policy planning Kiron Skinner described
strategic competition with China as “a fight with a really different
civilisation and a different ideology”. Skinner said it was the first
time the US had faced a “great power competitor that is not Caucasian”.
Chinese
officials have rejected Skinner’s remarks, and in his speech Xi
appeared to expand on the theme, saying cultures were distinctive but no
better or worse than each other.
“If someone
thinks their own race and civilisation is superior and insists on
remoulding or replacing other civilisations, it would be a stupid idea
and disastrous act,” Xi said.
“We should hold
up equality and respect, abandon pride and prejudice, deepen our
knowledge about the differences between our own and other civilisations,
and promote harmonious dialogue and coexistence between civilisations.”
He
went on to say: “If countries retreat back to secluded islands, human
civilisation will die out because of a lack of exchanges.”
Xi
stressed that people should step beyond the limits of their own culture
to discover the advantages of others, and argued it was the best way to
inspire innovation.
“All civilisations must progress with time and keep up with the latest achievement,” he said.
The
president suggested that the Belt and Road Initiative, his
transcontinental infrastructure strategy, was also a means to promote
cooperation between nations.
“The Belt and Road … and other initiatives have expanded the channels for civilisation exchanges,” he said.
Beijing
last month held the Belt and Road Forum to showcase its trade and
infrastructure projects in countries in Asia to Africa.
The speech reiterated the idea, which Xi has aired previously,
of a community of shared destiny, arguing that Asian countries should
open and connect their polices, infrastructures, trade, investment and
people.
Asia must maintain peace as the precondition of economic growth, which is the pillar of civilisation, he argued.
“All countries should conduct exchanges beyond borders of state, time
and civilisations, and work together to protect the peaceful time we
have, which is more precious than gold,” Xi said.
“Children
and women are suffering from poverty, hunger and diseases in Asia. This
has to be changed,” he said, calling on Asian nations to “work together
to promote an open, inclusive, balanced and mutually beneficial
globalised economy, eradicating poverty”.
Xi proposed
deeper cultural exchanges, saying that China would cooperate with more
Asian nations to translate their literature and would promote inward and
outward tourism.
“This can facilitate the appreciation and understanding of different cultures,” he said.
Stating
that China received 140 million overseas tourists last year while 160
million Chinese made visits abroad, Xi said tourism could promote
economic growth and friendship in Asia.
China would increase exchanges involving young people and think tanks, he added.