Huawei Technologies Co., Ltd. is a Chinese multinational technology company having second-largest smartphone manufacturing base & over 194,000 employees in more than 170 countries. The company was founded in 1987 by Ren Zhengfei, a former Chief in the People's Liberation Army. It designs, develops, and sells telecommunications equipment and consumer electronics, mainly of smartphones. It has accomplished several successes during its 33 years, but, as according to the recent news, it seems Huawei has reached the wall, which is as tough as leather, to conquer. US, India, UK, Japan, Australia etc have banned its products or are planning to do so. Recently, Huawei CEO told a tech industry forum that production of the company's high-end Kirin 9000 chipset would stop from September 15 (Because of US sanction), due to huge loses they incurred.
So, the golden era of Huawei is over now?
The one who has conquered in the smartphone world in 2018 is at the verge of bankruptcy? Blacklisting of Huawei from US or ban from the UK is a threat for it?
Probably not, if someone looked into it earlier; But not now. Today it’s different. It’s very very different. The whole world is uniting against China, starting from India, US & UK then followed by Australia, Japan etc.
Is this a Techno nationalism or politics?
Quite difficult to say. Isn’t it?
Definitely, it’s a politics which was started by Trump with the objective to win elections, by targeting China as the US-China Trade War, with the slogan “Make America Great Again”. This was mainly introduced because of the trade deficit with China & increased domination status of China; But now it’s taking a different shape.
A shape of Techno nationalism movement. Techno-nationalism is defined as a new strain of mercantilist thinking that links technological innovation and capabilities directly to a nation’s national security, economic prosperity and social stability. Exactly the same thing is happening with Chinese products & firms; That brought down, Huawei, from market leader to just a player now within a short time.
The whole world is cornering Chinese technologies, even when they are advanced & cheap.UK & US has already ignited the fire by banning Huawei because of national security reasons. Similarly, India has also banned 59 Chinese apps. There’s a new big wave of Techno nationalism is emerging in the world. There’s no doubt that in the future this can surely engulf several Chinese firms. Loss in revenue for Huawei is just the beginning of the collapse.
The impact of Techno Nationalism is far deeper than we can imagine. In the short term, it will lead to an increase in product price because of the sudden reduction of supply & reduction in employment. But for a firm like Huawei, it can lead to complete closure.
But neither the situation nor the firm is new. Several market leaders have fallen on the ground & some even rose again like Pheonix. So, it doesn’t mean that a loss or ban by some nations can lead to the closure of any firm. Huawei will have to be receptive to the techno nationalism wave, which is now playing a pivotal role in some nations like India and build different strategies to revamp its business.
So, leaving on you all, to decide whether it can revert or fall flat.
Official Promotional Partner:
Official Coverage Partner:
very insightful