On May 20th, US Secretary of Commerce Wilbur Ross said that the US government extended the Huawei Temporary General License, which expired on August 19, for another 90 days and extended it to November. On the 19th, Huawei was allowed to continue to purchase goods from US companies.
At the same time, Wilbur · Ross said that he is adding 46 Huawei subsidiaries to the “list of entities”, bringing the total number of restricted entities of Huawei to more than 100. Wilbur · Ross said the move was to make Huawei "more difficult to circumvent sanctions". For the unfair practice of the United States, Huawei responded for the first time.
Failure to change the injustice of the facts
“Huawei opposes the US Department of Commerce to include another 46 Huawei entities in the entity list. The United States chose to make this decision at this point in time, once again proving that the decision is a politically driven result and has nothing to do with US national security. This practice violates the principle of free competition in the market economy and will not benefit any party, including the United States. The company. The United States will not gain a leading position in technology by suppressing Huawei. ” Huawei clearly objected in the statement and pointed out the problems and influences of the US approach.
“We call on the US government to stop the unfair treatment of Huawei and remove Huawei from the list of entities. The postponed temporary license issued by the US government today did not change the fact that Huawei was treated unfairly. Regardless of whether the temporary license is postponed or not, Huawei's business has limited substantial impact, and we will continue to focus on making our own products and serving our customers around the world. & rdquo; Huawei said.
It is reported that there are a number of US companies currently applying to continue business cooperation with Huawei. US Commerce Secretary Wilbur Ross pointed out at the end of July that Huawei suppliers have applied for more than 50 special licenses and expect to receive more applications. Because these companies have found that Huawei can find “alternatives” on the chip level. The ongoing US ban will cause US companies to lose a lot of market.
On August 19th, Chinese Foreign Ministry spokesperson Yan Shuang hosted a regular press conference. Some reporters asked questions about US President Trump's remarks on Huawei and China-US economic and trade negotiations. Yu Shuang said: First of all, regarding Huawei, we have said many times that the economic and trade cooperation between Chinese and American companies is mutually beneficial and win-win. When the US dollar first met in Osaka, the US said it would allow US companies to continue to supply to Huawei. When the US fulfills its promises and how to fulfill its promises, it is related to the US's own reputation and credibility, and the international community is also watching. We hope that the US can do what it says, stop unreasonable suppression and sanctions against Chinese companies such as Huawei, treat Chinese enterprises in a fair and equitable and non-discriminatory manner, and do more to promote the healthy and stable development of China-US economic and trade cooperation. Not the other way around.
Focus on yourself
According to the review, on May 15 this year, the US Department of Commerce's Bureau of Industry and Security (BIS) announced that it would include Huawei and its 70 subsidiaries in the so-called “entity list”, requiring any US company that sells products to Huawei to obtain a license. Batch. After that, there is news that Google will suspend some of its support for Huawei. Qualcomm, Intel, Xilinx and other US companies have successively cut off Huawei's supply.
In the continuous crackdown of the United States and the external complex environment, what is the business development of Huawei in the first half of 2019? On July 30, Huawei announced that in the first half of 2019, Huawei achieved sales revenue of RMB 401.3 billion, a year-on-year increase of 23.2% and a net profit margin of 8.7%.
This result is beyond the expectations of the industry. For this achievement, Liang Hua, chairman of Huawei, pointed out that Huawei's financial indicators performed well and achieved stable operations. However, Liang Hua also said that Huawei's intelligent computing business and overseas terminal business have been affected.
Overall, the United States “list of entities” has caused some disruption to Huawei's development, but the scope and extent of its impact on Huawei are controllable. Huawei's main products are basically unaffected, and customers still believe in Huawei.
“Before May, Huawei's revenue grew faster, & ldquo; entity list & rsquo; after that, because of market inertia, it also achieved growth. & nbsp; Liang Hua said that Huawei's business continuity management and diversified supply strategy have also been verified in the market test. So far, Huawei has not stopped production for one day, and has not interrupted shipments to customers for one day.
For the overseas mobile phone business, Liang Hua introduced the improvement of overseas consumer confidence and has returned to the 80% level before the ban. For intelligent computing, Huawei has launched a solution based on the ARM architecture and the Taishan server.
On July 18th, Huawei founder Ren Zhengfei said that (now) Huawei is like an airplane, except for the "heart", intact, full body scars, more than 4,300 "holes" (replaced by US suppliers) Software and hardware products) will be repaired by 93% at the end of the year. In this performance announcement, Liang Hua introduced that the operator's business is basically “compensated”, and now it is focused on the consumer business “Buy hole”, Huawei still has to struggle for “survival”. .
In this regard, Huawei's consumer business CEO Yu Chengdong revealed that Huawei's consumer business grew by more than 40% in the first half of the year. Huawei's consumer business just got the baton of “Buyhole” and released Huawei's Hongmeng OS, EMUI 10, cloud service HMS, IoT development three-piece set, and Unicorn open at the Huawei Developer Conference on August 9th. Heavy products and plans such as platforms.
Regarding whether Hongmeng system is used in mobile phones, Yu Chengdong said that Huawei mobile phones are preferred to use Android. Once Android is not allowed, Huawei will enable Hongmeng system at any time. Huawei Hongmeng system is a distributed full-scene system based on micro-kernel. The performance is better. Switching from Android to Hongmeng is very fast and can be realized in 1-2 days.
In addition, according to all the media reporters in the communications world, on August 23, Huawei will officially release the latest AI chip, and the new generation AI open source computing framework will also be unveiled at the same time. Coupled with the previous appearance of the rising chip, the Pengpeng chip and the Hongmeng OS, Huawei demonstrated its own innovative strength against the unfair treatment of the United States.
Regarding Huawei's future development, Liang Hua said that Huawei is full of confidence in the future and will continue to invest in the future. It plans to invest 120 billion yuan in research and development in 2019. I believe that after overcoming short-term difficulties and challenges, Huawei will enter a new period of development.
It is worth mentioning that on May 29, Huawei submitted a summary judgment motion in the United States as part of its constitutional action to challenge Article 889 of the 2019 NDAA National Defense Authorization Act (2019 NDAA). Huawei also called on the US government to stop using state machines to suppress Huawei because it is not conducive to cyber security. It is reported that according to the lawsuit process table, the case will be held on September 19th for the motion.Author: Huang HaifengEditor/Layout: Wang Rongrong
Proofreading / Audit: Shen Qing