Huawei is one of the largest manufacturers of telecommunications equipment and smartphones in the world, which has experienced a number of major challenges related to international sanctions in recent years. The United States and several other countries have placed restrictions on the company, accusing it of threatening national security and trying to weaken its position in the global market. Despite these sanctions, Huawei continued to show its resilience and ability to adapt, retaining significant market shares in a number of key sectors.
In this article, we will look at how Huawei was able to survive the sanctions, what strategies it used to maintain its position and what it did to continue to develop under restrictions.
1. Sanctions against Huawei: What happened?
1.1 U.S. Sanctions and Their Impact on the Company
In 2019, the US administration imposed tough sanctions on Huawei, blacklisting the company (Entity List). The decision limited Huawei's access to technology and components made by American companies, including crucial chips and software such as Google's Android. The sanctions also made it difficult to purchase components that were used in the production of smartphones and telecommunications equipment.
- Access to critical technology is banned: sanctions have made it difficult to purchase chips and components such as Qualcomm, Intel and others. This created problems in the production of new devices and worsened Huawei's technological capabilities.
- Prohibited access to software: Huawei has lost access to Android and Google services, creating additional difficulties for its smartphones in international markets.
1.2 Risks to Business and Global Positions
The sanctions have had an impact on many aspects of Huawei's business. Its position in the smartphone market, where the company lost access to important software and hardware solutions, was especially affected. Also, limiting access to technology for 5G has threatened its leadership in this promising market.
Huawei did not give up, however, and the company developed several strategies to survive this crisis and maintain its position.
2. Huawei's strategies for survival and growth
2.1 Development of own technologies
One of the main strategies for Huawei was the development of its own technologies. The company accelerated the creation of its own operating system HarmonyOS, which could replace Android on its devices. In 2020, Huawei announced its own AppGallery to compete with Google Play, offering users an alternative to app stores.
- Own chips: Huawei is also actively developing its own chip production through its HiSilicon subsidiary, which allows it to reduce dependence on foreign suppliers.
- Operating system and ecosystem: despite the fact that HarmonyOS is not yet so widespread, the company is gradually increasing its ecosystem of applications, services and devices to create an alternative to Western technologies.
2.2 Strengthening Chinese Market Position
When Huawei faced challenges on the international stage, the company emphasized the Chinese market, where it remained one of the leading players. Under the sanctions, China continued to be an important source of revenue for the company. Huawei actively developed its own mobile devices, 5G networks and Internet services in China, which allowed maintaining a high level of production and demand for its products.
- Huawei has continued to strengthen its position in the telecom services sector in China, leading the 5G market and developing infrastructure for smart cities.
2.3 Business Diversification
Huawei has also stepped up its business diversification. Instead of relying exclusively on smartphones, the company is actively developing infrastructure solutions, cloud services and the Internet of Things (IoT). It continued to strengthen its position in industries such as energy, automotive and manufacturing technologies.
- Huawei has significantly increased its investments in infrastructure for 5G and telecommunications solutions, which has allowed it to take a leading position in the development of network infrastructure around the world.
- The company develops projects in the field of artificial intelligence and digital technologies, which helps diversify its revenues and reduce dependence on specific sectors.
2.4 Restoration of International Relations
Despite the sanctions, Huawei is actively working to restore its international ties. The company is looking for alternative ways to access key components and services, as well as developing partnerships with other countries that could become important sources for further growth. In particular, Huawei continues to actively work with European countries and develops partnerships with Asian markets.
The company is actively working to strengthen its position in the countries of Southeast Asia, Africa and Latin America, where it provides telecommunications solutions and develops Internet services.
3. Huawei development prospects
3.1 Leadership in 5G
One of Huawei's strongest competitive advantages remains its position in the 5G market. Despite the sanctions, the company continues to dominate this segment, developing the latest solutions for the construction of 5G infrastructure. Huawei remains a leading technology provider for mobile operators around the world, and is also actively involved in the development of new standards for the Internet of Things and smart cities.
3.2 Sustainable Development and Innovation
Huawei continues to invest in research and development. The company is actively developing new products and solutions in the field of blockchain, cloud technologies and artificial intelligence, which will allow it to remain competitive for the long term.
Conclusion
Huawei has been able to adapt to tough sanctions through flexibility, innovation and a strategic approach. Developing its own technologies, diversifying its business and strengthening its position in the domestic market were key factors that allowed the company to continue its development. Despite continued pressure from external political factors, Huawei maintains its leadership position in strategically important areas such as 5G and infrastructure solutions and continues to move towards new peaks in the global market.
In this article, we will look at how Huawei was able to survive the sanctions, what strategies it used to maintain its position and what it did to continue to develop under restrictions.
1. Sanctions against Huawei: What happened?
1.1 U.S. Sanctions and Their Impact on the Company
In 2019, the US administration imposed tough sanctions on Huawei, blacklisting the company (Entity List). The decision limited Huawei's access to technology and components made by American companies, including crucial chips and software such as Google's Android. The sanctions also made it difficult to purchase components that were used in the production of smartphones and telecommunications equipment.
- Access to critical technology is banned: sanctions have made it difficult to purchase chips and components such as Qualcomm, Intel and others. This created problems in the production of new devices and worsened Huawei's technological capabilities.
- Prohibited access to software: Huawei has lost access to Android and Google services, creating additional difficulties for its smartphones in international markets.
1.2 Risks to Business and Global Positions
The sanctions have had an impact on many aspects of Huawei's business. Its position in the smartphone market, where the company lost access to important software and hardware solutions, was especially affected. Also, limiting access to technology for 5G has threatened its leadership in this promising market.
Huawei did not give up, however, and the company developed several strategies to survive this crisis and maintain its position.
2. Huawei's strategies for survival and growth
2.1 Development of own technologies
One of the main strategies for Huawei was the development of its own technologies. The company accelerated the creation of its own operating system HarmonyOS, which could replace Android on its devices. In 2020, Huawei announced its own AppGallery to compete with Google Play, offering users an alternative to app stores.
- Own chips: Huawei is also actively developing its own chip production through its HiSilicon subsidiary, which allows it to reduce dependence on foreign suppliers.
- Operating system and ecosystem: despite the fact that HarmonyOS is not yet so widespread, the company is gradually increasing its ecosystem of applications, services and devices to create an alternative to Western technologies.
2.2 Strengthening Chinese Market Position
When Huawei faced challenges on the international stage, the company emphasized the Chinese market, where it remained one of the leading players. Under the sanctions, China continued to be an important source of revenue for the company. Huawei actively developed its own mobile devices, 5G networks and Internet services in China, which allowed maintaining a high level of production and demand for its products.
- Huawei has continued to strengthen its position in the telecom services sector in China, leading the 5G market and developing infrastructure for smart cities.
2.3 Business Diversification
Huawei has also stepped up its business diversification. Instead of relying exclusively on smartphones, the company is actively developing infrastructure solutions, cloud services and the Internet of Things (IoT). It continued to strengthen its position in industries such as energy, automotive and manufacturing technologies.
- Huawei has significantly increased its investments in infrastructure for 5G and telecommunications solutions, which has allowed it to take a leading position in the development of network infrastructure around the world.
- The company develops projects in the field of artificial intelligence and digital technologies, which helps diversify its revenues and reduce dependence on specific sectors.
2.4 Restoration of International Relations
Despite the sanctions, Huawei is actively working to restore its international ties. The company is looking for alternative ways to access key components and services, as well as developing partnerships with other countries that could become important sources for further growth. In particular, Huawei continues to actively work with European countries and develops partnerships with Asian markets.
The company is actively working to strengthen its position in the countries of Southeast Asia, Africa and Latin America, where it provides telecommunications solutions and develops Internet services.
3. Huawei development prospects
3.1 Leadership in 5G
One of Huawei's strongest competitive advantages remains its position in the 5G market. Despite the sanctions, the company continues to dominate this segment, developing the latest solutions for the construction of 5G infrastructure. Huawei remains a leading technology provider for mobile operators around the world, and is also actively involved in the development of new standards for the Internet of Things and smart cities.
3.2 Sustainable Development and Innovation
Huawei continues to invest in research and development. The company is actively developing new products and solutions in the field of blockchain, cloud technologies and artificial intelligence, which will allow it to remain competitive for the long term.
Conclusion
Huawei has been able to adapt to tough sanctions through flexibility, innovation and a strategic approach. Developing its own technologies, diversifying its business and strengthening its position in the domestic market were key factors that allowed the company to continue its development. Despite continued pressure from external political factors, Huawei maintains its leadership position in strategically important areas such as 5G and infrastructure solutions and continues to move towards new peaks in the global market.