Huawei takes practical approach in face of pressure

By Wang Jiamei Source:Global Times Published: 2019/5/21 21:03:07

File Photo: IC

Huawei founder Ren Zhengfei on Tuesday displayed extraordinary calms and confidence in response to questions surrounding the escalation of tension between his company and the US government. By many standards, Ren's remarks were stunning in his objectivity and global vision, and his company's strategic confidence should be a model for other Chinese companies to learn from and refer to when going global.

While the US blockade of Huawei may seem like an extreme case, it is true that Chinese companies have been facing growing pressure globally, as when the world economy is facing great uncertainties amid rising protectionism and unilateralism. 

In particular, due to misunderstandings and distortions over the Belt and Road Initiative (BRI), some Chinese companies may face headwinds when seeking cooperation and exploration in some BRI countries and regions.

Yet, Chinese companies cannot give up overseas markets simply because of pressure and obstacles. They must adhere to going global and unswervingly push forward with the BRI, especially under the current situation. 

The conditions China faces today are actually much better than they were decades ago. So for companies with a global vision, there is no reason to back off due to temporary pressure.

Nonetheless, the overseas situation facing Chinese companies is far more complex and difficult than expected, and therefore preparations must be made in case bad scenarios occur. 

The reason why Huawei could be so confident in downplaying the impact of the US blacklist that could ban it from buying parts and components from US companies is because it long ago made a contingency plan. 

Moreover, despite the obstacles caused by some narrow-minded foreign politicians, there is no need for businesses to incite "nationalism." Just as Ren noted, "blame should be directed at US politicians, not companies," so his company always needs "US-developed chipsets, and can't exclude US products with a narrow mind."

In addition, the capacity to undertake technological innovation is always essential for any company. According to Ren, the difficulties faced by Huawei can also spur China to develop its chip industry in a down-to-earth manner. Money alone is not enough to develop the chip industry. "Global talent is also needed. It is very difficult to rely solely on China's independent innovation to succeed. Why can't we embrace the world and rely on global innovation?"

Chinese companies need to build their strength by embracing the global market and using global talent, so as to compete in the global arena.

The author is a reporter with the Global Times.


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