The $100 billion technology company Huawei has navigated through the chaos caused by President Trump’s tariffs with a calm and detached perspective. Despite being blocked from the US market in 2019 and facing significant challenges, Huawei has adapted and thrived. The Executive Order preventing Huawei from working with US companies was not lifted by the current US president, Joe Biden, effectively making it a permanent restriction. However, Huawei sold its smartphone unit in 2020, invested heavily in R&D, and focused on developing its homegrown ecosystem. The company’s latest annual report shows that Huawei’s revenues are almost back to their 2020 peak, with a significant portion of revenue dedicated to R&D.
Huawei has focused on developing its Ascend compute platform and HarmonyOS operating systems, now used on millions of devices globally. The company has also made significant strides in developing its Kunpeng server CPU range and Ascend AI chips, reducing the US’s dominance in computer hardware in mainland China. Despite potential additional tariffs from President Trump, Chinese companies may consider following Huawei’s playbook and eliminating the US market from their business plans. Embracing short-term challenges for long-term gains has been a successful strategy for Huawei, showcasing resilience and adaptability in the face of adversity. As Chinese companies navigate the complex landscape of international trade, Huawei’s experience serves as a valuable guide for overcoming obstacles and thriving in a changing global market.
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