{"id":43551,"date":"2019-06-10T08:00:09","date_gmt":"2019-06-10T00:00:09","guid":{"rendered":"https:\/\/daxueconsulting.com\/?p=43551"},"modified":"2022-11-24T00:40:34","modified_gmt":"2022-11-23T16:40:34","slug":"huawei-issue-chinese-netizens-sanction-us","status":"publish","type":"post","link":"https:\/\/daxueconsulting.com\/huawei-issue-chinese-netizens-sanction-us\/","title":{"rendered":"Huawei issue: What are the reactions of Chinese netizens to the sanction to Huawei from the U.S.?"},"content":{"rendered":"\n

The president of the United States, Donald Trump, announced the US would blacklist Huawei<\/a> by putting it on the \u201cEntity List\u201d and \u201cExport Blacklist\u201d issued by U.S. Department of Commerce, which forced several U.S. companies, including Google and Qualcomm, to suspend the business cooperation with Huawei<\/a>. This announcement is similar to what Trump did last year when he sanctioned ZTE, one of Huawei\u2019s counterparts in China. Also, Trump also announces that several Chinese sci-tech companies, such as DJI <\/a>and Hikvision<\/a>, will also be on the lists. This incident arouses the debates among Chinese netizens and Chinese news media, discussing whether Huawei can survive. Huawei\u2019s cell phones are manufactured based on the Android system that belongs to Google and with chips produced by Qualcomm. Besides, Huawei develops its own chips by leveraging the chip structures provided by ARM. Debates are buzzing on the internet focus on whether Huawei and other promising Chinese sci-tech companies are ready for further possible sanctions from Trump.<\/p>\n\n\n\n

Buzz among Chinese netizens around the\n\u201cHuawei ban\u201d issue <\/h2>\n\n\n\n

Blacklisting Huawei: Search Index <\/h3>\n\n\n\n

As a renowned China\u2019s telecom company, Huawei always attracts eyes from many Chinese netizens, especially after the incident called \u201cHuawei Ban\u201d in which Trump announced to blacklist Huawei, while Google, Qualcomm, and ARM declared to stop business cooperation with Huawei. <\/p>\n\n\n\n

\"Huawei
[Source: Baidu Index \u201cSearching Index of Huawei\u201d]<\/figcaption><\/figure>\n\n\n\n

Concerning the data of Baidu Index, it shows that China\u2019s telecom brand related searching rose dramatically in the last 30 days stright after the Huawei issue, and the ascending trend started right after Trump announcing raising the tariffs to China and later announcing to blacklist Huawei. <\/p>\n\n\n\n

What do Chinese netizens say about Huawei issue in Weibo?<\/h3>\n\n\n\n
\"issue
[Source: Weibo \u201cTopics of Huawei\u201d]<\/figcaption><\/figure>\n\n\n\n

On Weibo, the Chinese twitter, there are also many topics relevant to Huawei\u2019s sanction by Trump and the pause of cooperation with U.S. companies, and all the topics have above 10 thousand discussions and several hundred million views. The Huawei issue related to Huawei\u2019s Hongmeng operating system, and the letter of Huawei Hisilicon\u2019s CEO are most viewed by Chinese netizens. Views\u2019 number of a topic relevant to ARM rises tremendously to more than a hundred million in half a month.  It seems that Chinese netizens are worried about the largest of China\u2019s telecom company\u2019s reaction to the situation.<\/p>\n\n\n\n

\"Kirin
[Source: Weibo \u201cHuawei issue\u201d]<\/figcaption><\/figure>\n\n\n\n

Many Chinese netizens think that 5G technology is the most important reason<\/a> why Trump and the U.S. government ban Huawei; because once Huawei technology has the lead on the global 5G network, the U.S. government may lose the chance to monitor the world. US companies currently occupy almost 90% of the 4G market; these measures can also be a way not to miss the chance to get great benefits from the 5G industry.  <\/p>\n\n\n\n

CONTACT US NOW TO ANSWER YOUR QUESTIONS ABOUT BUSINESS IN CHINA<\/a> <\/a><\/div>\n\n\n\n

WeChat users\u2019 reaction to sanctions against Huawei<\/h3>\n\n\n\n
\"Huawei
[Source: WeChat Index \u201cComparison of Huawei, U.S.A and Trump\u201d]<\/figcaption><\/figure>\n\n\n\n

Data from WeChat Index, which is derived from the\ncommunication and information-sharing software WeChat in China, shows the search\nfrequency of the Huawei brand increased after a search for words such as \u201cthe US\u201d\nand \u201cTrump.\u201d Can be assumed that Chinese netizens didn\u2019t interest into Trump\u2019s\nsanction to Huawei until specific actions made by Google, ARM, Qualcomm, who\nannounced to pause the business cooperation with Huawei, which may jeopardize\nHuawei\u2019s business.\n<\/p>\n\n\n\n

\"Hongmeng
[WeChat Moments \u201cDon\u2019t be afraid, Huawei!\u201d]<\/figcaption><\/figure>\n\n\n\n

One of the KOLs on WeChat, which is a social communication media in China, thinks that the true reason of the Huawei issue is the U.S. wants to target on China in case China takes the leading position of the U.S. in economy and technology, which is deemed as a big threat to the U.S. government to maintain its economic benefits, and as Huawei is the representative of Chinese technology, the U.S. can hinder Chinese technological development by sanctioning Huawei. Some netizens who follow the KOL also believe this is a war between two countries, so the Chinese government should interfere more with the conflicts between Huawei and the U.S. government, and Chinese people should stay together to support the country and Huawei. <\/p>\n\n\n\n

A Chinese question-answer forum: Shows us what Chinese netizens think of the Huawei issue<\/h3>\n\n\n\n
\"5G
[Source: Zhihu \u201cHuawei 5G\u201d]<\/figcaption><\/figure>\n\n\n\n

Plenty\nof Chinese netizens are discussing Huawei 5G technology because Huawei has already been one of the most advanced\ncompanies<\/a> in the 5G industry,\nand Huawei 5G has already been the hot topic on Chinese question-answer forum Zhihu as showed above. But Huawei operating\nsystem and Huawei Hisilicon are also buzzing on the forum, and questions or topics about Huawei OS and Huawei Hisilicon are\nput forward by Chinese netizens.<\/p>\n\n\n\n

\"Huawei
[Source: Zhihu \u201cDiscussions on Huawei OS and Huawei Hisilicon\u201d]<\/figcaption><\/figure>\n\n\n\n

On\nZhihu, there are several thousand netizens following the discussions about\nHuawei\u2019s possible solutions to its difficulties, including the expectation of Huawei operating system and\nHuawei Hisilicon. <\/p>\n\n\n\n

\"Huawei
[Source: Zhihu \u201cHuawei OS and Huawei Hisilicon\u201d]<\/figcaption><\/figure>\n\n\n\n

The answers are both optimistic and pessimistic: although it is\neasily expected that there are netizens optimistic about Huawei OS and Huawei\u2019s Hongmeng OS can help Huawei\novercome the Huawei ban\nissue because they believe Huawei has capital and technologies to support its\nresearch, there are also a number of netizens pointing out that there are\nlimits of Hongmeng operating\nsystem and Huawei\nHisilicon, but this is also the Sputnik moment for Huawei to get rid of its dependence on the\nU.S. technical support.\n<\/p>\n\n\n\n

Huawei through the eyes of Chinese consumers: A contradiction in opinions <\/h2>\n\n\n\n
\"sanctions
[Source: Tik Tok \u201cHuawei\u201d]<\/figcaption><\/figure>\n\n\n\n

There\nare also comments that are suspicious about\nHuawei on the net. They have ideas that if Huawei wants to gain the support\nfrom Chinese citizens, then it needs to decrease\nthe price of its products inside China;\nsome Chinese netizens also point out that Huawei cannot continue its production\nalone.<\/p>\n\n\n\n

\"Blacklist
[Source: Weibo \u201cHuawei issue\u201d]<\/figcaption><\/figure>\n\n\n\n

Some\nnetizens also criticize Huawei for leveraging\npatriotism for sales tactics. Since the\nincident, some netizens expressed Huawei just\nwants to use pity for marketing purposes. <\/p>\n\n\n\n

Overall,\nChinese netizens focus more on the point that the U.S. wants to hinder China, and therefore,\nit can gain leadership in the 5G industry, and Huawei 5G is the cause. There are both\nsupporters and objectors of Huawei among Chinese netizens, and the main\ncontroversy is not whether Huawei can overcome the difficulty but whether it is\npatriotic to buy Huawei products.<\/p>\n\n\n\n

Huawei 5G\ntechnology: What is the reason for Trump\u2019s ban on Huawei? <\/h2>\n\n\n\n

Huawei 5G technology was developed as early as in 2009, according to the information released on its website. In 2017 and 2018, Huawei spent U.S$1.4 billion R&D expenditure on Huawei 5G technology. Huawei 5G technology is characterized by \u201csimplified architecture\u201d <\/a>with simplified base stations to relay the signals and information in the form of the microwave. Currently, Huawei has been one of the most promising leaders in 5G technology, and Huawei has already tested its 5G technology successfully on broadcasting and telecommunication in several countries including Japan, Germany, and the UK. <\/p>\n\n\n\n

Huawei’s\nmain competitor in 5G technology is Qualcomm. In the Chinese Internet users\u2019 eyes, this is the most\nlikely reason behind the Huawei\nban.  <\/p>\n\n\n\n

The\nfuture of Huawei: What is the forecast <\/h2>\n\n\n\n
\"huawei\"<\/figure>\n\n\n\n
\"Data
[Source: SimilarWeb \u201cData of Huawei Vmall\u201d]<\/figcaption><\/figure>\n\n\n\n

The\ndata of Huawei Vmall<\/a> that obtained\nfrom SimilarWeb shows that the traffic of Huawei online sales platform had experienced a downfall since Nov. 2018, even within the period of Huawei’s P30 mobile\nrelease. <\/p>\n\n\n\n

However,\nHuawei CEO Ren Zhengfei is quite confident about\nthe future of Huawei. Ren joined the interview held by a Chinese journalist and\nsaid that Huawei would win the battle\nwith the U.S. government. He reckoned this is Huawei\u2019s Sputnik moment and Huawei would overcome. \u201cI never\nthought we, Huawei, would die.\u201d Said Ren.\n\u201cWe think we should analyze the problems we have: which problem we can neglect,\nwhich problem we should focus on. Then we\nwill achieve victory. The U.S. has no way to do with some high-tech products because we entirely count on\nourselves.\u201d <\/p>\n\n\n\n

Huawei\u2019s saviors: Huawei operating system and Huawei Hisilicon<\/h3>\n\n\n\n

Ren\u2019s\nconfidence about Huawei is obvious for\nChinese netizens, as they launched several discussions on social media\nplatforms about the solutions to the difficulties that Huawei encounters. Most people thought that the Hongmeng operating system, which is developed by Huawei itself<\/a>,\nand the Kirin chip in China\nthat is invented and manufactured by Huawei Hisilicon (which\nis Huawei\u2019s subsidiary<\/a>) can help Huawei to get\nrid of the impact of being banned by the U.S. In addition, since Huawei is a\nChina\u2019s telecom company, mobile business is just a part of it; and Huawei can\ngive up the mobile business and continue to survive without it. A phrase called \u201cextreme survival\u201d <\/a>is used to\nillustrate the current status of Huawei, and this phrase is also often\nassociated with the Huawei\u2019s issue\nin\nthe Chinese internet.<\/p>\n\n\n\n

Can Huawei survive from \u201cHuawei\nban\u201d by developing Hongmeng\nOS and Huawei\nHisilicon?<\/h3>\n\n\n\n

Currently,\nall of Huawei\u2019s mobiles are equipped with an Android system provided by\nGoogle. Besides, Qualcomm and ARM are the chip supporters of Huawei: Qualcomm\nprovides chips to Huawei for its most mobile products, and ARM provides the\narchitectures for Huawei to design and manufacture its Kirin chip in China. But now Google, Qualcomm,\nARM have already stopped cooperation with Huawei, which is a tremendous threat to Huawei technology. Although the Android system is open source, Huawei\u2019s mobiles\nwill not receive the following support\nand update services on the Android system\nfrom Google. In addition, Huawei cannot\npurchase chips from Qualcomm or design its chips by using the new structures\nfrom ARM.<\/p>\n\n\n\n

However,\nHuawei still has opportunities to overcome. Huawei just announced that it had developed a Hongmeng operating system as the alternative of the\nAndroid system on condition that Google\nwill not provide the Android system. Also, ARM has authorized Huawei to use its\nexisted architectures permanently without being affected by the U.S.\ngovernment\u2019s regulation, so Huawei\nHisilicon can further develop Kirin chip in China.<\/p>\n\n\n\n

\"Huawei
[Source: Sohu \u201cHuawei Business in 2018\u201d]<\/figcaption><\/figure>\n\n\n\n

Huawei\nmobile business also accounts for only part of its\nbusiness. According to Sohu, the mobile business\ntakes up to 48.4% of all Huawei business, while there are more than 50% coming\nfrom other parts of Huawei Business. For example, operator services account for about 40% of Huawei business, and this\nmay increase as Huawei 5G\nis expected to help Huawei obtain more market share in the sector of operator\nservices. At present, Huawei\n5G\u2019s main competitor is Qualcomm\n5G, which was tested last year and received unpleasant feedbacks.<\/p>\n\n\n\n

The future of Huawei is promising. Nevertheless, either Hongmeng operating system and Kirin chip in China cost certain time to improve until they are fully qualified for the market that Huawei has. Although Ren said that Huawei operating system and Huawei Hisilicon have developed much enough to go to the market, time will tell whether the new Huawei technology is qualified in the market.<\/p>\n\n\n\n

\n\nAuthor: Dennis Deng<\/a><\/p>\n\n\n\n

\n\n\n\n

Make the new economic China Paradigm positive leverage for your business <\/strong><\/p>\n\n\n\n