Sunday , January 17 2021

More than one company, symbol of the Chinese political-economic model

Every CEO, who had to negotiate with Chinese analogues, knows that the family factor is key to generating trust. It is part of their culture. That is why the arrest of Huawei Financial Director Meng Wanzhou not only creates anger from his father, founder of the company, but also from the Chinese government, which, according to the same cultural logic, believes that this company is almost part of a family clan of technological and economic success of the Asian side, comparable to others like Lenovo, ZTE, Alibaba Group, Tencent and even Baidu.

It is essential to understand the links between the political system coming from communism and the commercial expansion of capitalism – an experiment so far successful economically that generates a series of trusting relationships between the public and business sectors.

So for the Chinese government, the arrest is stabbed in the back, days after it has reached a trade cease with the United States. In fact, this is the reason for the nervousness of all the world's markets, including the Chilean (see the related note): the uncertainty before this division of trust between the two countries, just as relative peace was achieved in the course of the war,

And to make her worse, the request for arrest was made by the US administration.

From Connectivity To Top 2 For Sale Of Smartphones

Huawei's support for the Chinese government is explained by its history. He was born in the late 1980s with an initial capital of $ 3,500 (by that time), shortly before the North American era of homes. But it did not appear as a content or service company on the Internet.

Exactly the opposite. his core is to provide the necessary connectivity for the operation of telecommunications. This means that the production of PBXs to connect different points. Its main clients are telecommunication companies.

Already in the 1990s, following the same path, technologically supporting the promising "network of networks" (internet) that gave the nursery the first steps on a massive level. Huawei had the equipment and back to do so, so in 1996, he decided to leave the borders and in 1997 launched products to connect wireless networks GSM, CDMA and UMTS.

In 2000, when the world was trembling with the false "hangover" (Y2K) hangover, the problems with the United States began. This party said Huawei has installed a telecommunication system in Iraq, paying attention to UN sanctions. Then the Chinese government denied it, supporting the local company. The US insisted.

This was the beginning of a tense connection that would not be worth a decade later for millions of North American consumers and the Western world who enthusiastically purchased Huawei smartphones for their excellent performance and price.

And this, 18 years later, will be a new indictment from Donald Trump's government about the suspicion that the Chinese company will break the commercial sanctions in another Middle East country: Iran.

But there are problems with other technology giants, mainly due to accusations of copying products and letting other R & D investments, and then providing a cheaper technological proposal.

In 2003, Cisco accused Huawei Technologies and its subsidiaries Huawei America Inc. and FutureWei Technologies Inc. for illicit copying of the intellectual property of this California company.

And despite the fact that the Chinese company has teamed up with IBM, Siemens, Symantec and other large companies, it has always been in the eyes of technology giants who envy their intellectual property.

Today, Huawei is the world's largest telecom equipment provider and second-largest smartphone maker, with revenues of about $ 92 billion last year.

Unlike other large Chinese technology companies, it has a large part of its business abroad and is a market leader in many countries in Europe, Asia and Africa. In other words, a real symbol of the political-commercial mix of the Chinese model.

Although in the western world many have remained faithful to the apple brand as Huawei broke into the world of smartphones after 2010, consumers have seen in their teams a more pragmatic and ideal acquisition to take their own, the Internet and do not worry about the impact of the device.

Something like the best of the Apple and Samsung worlds, but in a new and a young brand. Huawei, on the other hand, has put together a marketing strategy that is rarely seen in advertising history.

At the end of August this year, Huawei achieved one of its most important goals. It outpaces Apple in global smartphone sales, comes second after Samsung.

The Chinese manufacturer sold around 54 million phones in the last quarter, 40% more than in the same period in 2017, according to IDC, Canalys and IHS Markit. A true story of the success of China's People's Republic of China's model of development. Successor of the "open door" policy of the giant in the east.

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