The history of Huawei and byte going to sea: a history of struggle with the political circle of the United States

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 The history of Huawei and byte going to sea: a history of struggle with the political circle of the United States


At that time, the multilateral trading system and Internet industry were in vogue, and China began to excel in export-oriented economy.

Ren Zhengfei, who came back from an inspection tour in the United States, wrote an essay entitled notes on the investigation to the United States. He said: if the Chinese do not go out and have a look, they will not only be unable to catch up with others, but also may fall off the train of the times.

Since then, the pace of Chinas accession to the WTO has become faster and faster, and Huaweis share in the global market has grown rapidly. Under the opportunity of trade globalization, Huawei relies on the price and service advantages of encircling the city from the countryside, and makes its products blossom all over the world with small profits and high sales.

Ren Zhengfei

In 2001, China joined the WTO. At that time, Zhang Yiming was studying in senior three, and Huawei took root in Dallas. Four years later, baidu went public in the United States, closing at 353% above its offering price. For Americans, the China concept has really come.

The United States is a barrier that Chinese enterprises cant get around. There are many Internet companies, communication giants take root, and wolves on Wall Street are everywhere. Its mules and horses. Enterprises are willing to take a walk there.

Two middle-aged men hold hands tightly together at Huaweis Dallas Institute on March 30, 2009. They are Hu houkun, President of global sales and services of Huawei, and Stephen bye, vice president of wireless business of Cox, the third largest cable TV company in the United States. Hu houkun promised to deliver high-quality wireless network to Cox and provide continuous support to customers in North America market with products and services.

Behind this seemingly mediocre business cooperation, it is a milestone for Huawei to be embedded in the global market. Before that, Huawei had 44% market share in Africa and the Middle East, and joined hands with all the worlds well-known mobile operators in Europe. The North American market was the last bastion for Huawei.

Huawei has nearly 1000 employees in North America. It took eight years to finally gnaw the hardest bone of globalization strategy, boosting Huawei to become the second largest equipment manufacturer in the world with the net profit growth of more than 100%.

It was also in 2009 that Zhang Yiming started his own business for the first time. He founded the vertical real estate search engine 99house. He met Wang Qiong, a partner of Haina Asia, who will jump in the future. He began to show his interest in information products, laying the foundation for todays headlines.

The most important thing in this years Internet industry is Googles exit from China. This watershed means that the globalization of the Internet is beginning to leak. Yahoo, Amazon and eBay are acclimatized and have to go back home in the business competition. The scientific and technological power of China and the United States has gradually changed from gap to difference.

In September 2014, Ali was listed on the New York Stock Exchange, becoming the largest IPO in the history of US stock market, with an opening price rise of 36.32%. Global politicians, including the president of the United States, want to meet Ma Yun. Since then, Alibabas fund-raising scale has been ranked first in global history.

In September this year, Zhang Yiming also appeared in the United States, which was his first visit to Silicon Valley. Participating in the visit to Silicon Valley organized by geek Park and visiting Facebook, Google, airbnb, Tesla, y combinator and other technology enterprises in a week, it also strengthened bytes global strategy.

Unlike Ren Zhengfei, who expressed his anxiety through his essays, Zhang Yiming summed up the trip and shared his feelings several times. He was full of confidence: the golden age of Chinese technology companies is coming; Chinese companies are not inferior to Silicon Valley companies in terms of executive power, but even stronger.

Zhang Yiming

During this period, he was asked by investors from all over the world whether he planned to go overseas. Zhang Yiming said that his answer was the same every time: of course, we are recruiting people.

In 2016, cultural trade entered the stage of action in China. At that time, the Ministry of culture and the Ministry of Commerce issued the action plan for opening up overseas cultural market (2016-2020). Since then, the application of big data, cloud computing, social media, artificial intelligence, Internet of things, blockchain and other technologies in the field of cultural trade has accelerated. Cultural globalization has become a major trend.

The next year, tiktok and wanghong Li Ziqi set sail successively. The latter is popular on youtube, accumulating millions of fans. Tiktok took three years to reach the top. In June and July this year, it became the worlds highest paid non Game App twice, 7.3 times and 7.6 times higher than that of the same period last year. According to the semi annual survey data of Piper Sandler, an investment bank, more than 60% of American teenagers use tiktok at least once a month, while the use probability of domestic products such as twitter and Facebook in the United States is 41% and 36%.

No one expected that 10 years after Google returned to the United States, the United States would bet against globalization. The iron curtain of science and technology has fallen.

On August 5, U.S. Secretary of state pompeio announced the expansion of the U.S. net net operation, targeting five areas of Chinese technology: operators, app stores, applications, cloud storage and cables. These new measures are an extension of the 5g net initiative announced in April this year.

A president, with the characteristics of an investor and a Mafia, points a gun at tiktok and goes to a wedding... This is a scene described by the New York Times.

In June 2018, Zhang Yiming delivered a speech at the 22nd China International Software Expo, saying that Huawei is a bytecan model. Huawei has built telecom infrastructure overseas, built global network connectivity, and become a global infrastructure. We hope to realize the globalization of Chinas software mobile applications.

Huawei overseas branch

In 2016, when tiktok is still in the brewing stage, Zhang Yiming paid a long-distance tribute to Huawei at the closed door meeting of TMD in Wuzhen at the end of the year.

On the other hand, bat is short-sighted. On a very promising, very long runway, we should fly at low altitude. They can achieve more if they use their profits to invest more deeply and on a larger scale.

At the same time, he gave Huawei the only praise words of the straight man of science and technology. Huawei is the only global and technologically advanced large enterprise in China. Huawei is more difficult to internationalize than Internet companies, but it is better than domestic Internet companies. He also said that he and a number of Huawei staff learned from experience and hoped to go to sea actively and patiently in the future.

As a pioneer, Huaweis internationalization strategy actually stems from anxiety.

Since its birth, Huawei has been besieged by international enterprises. Genetically speaking, Huaweis growth cannot escape the battle of internationalization. Catching up with the golden decade of communication network construction in the 1990s, the state issued policies to support the national communication industry. Huawei took the strategy of encircling the city from the countryside, and found a breakthrough in the countryside among the multinational enterprises. It set foot on the plateau, border islands and mountain towns, opened up the situation with the advantages of good quality and low price, stood out in China and accumulated the confidence to go out to sea.

In 1994, Ren Zhengfei led a team to the United States for an investigation. After discovering the technological gap between China and the United States, he quickly determined the globalization strategy: in the next three to five years, Huaweis product research system, marketing, production technology, equipment and management, corporate culture and management will be fully in line with international standards.

In the early stage, the water test in Hong Kong and Russia was not good. Hong Kong is one of the gathering places of global telecom companies. Huawei needs to face the competition from Siemens. The product accidents happened one after another. The staff had to lay the floor in the computer room and debug the equipment all night.

In the words of Guo Ping, vice chairman of Huawei, going to Russia is a black eye. Xu Zhijun, vice president of Huawei, once took executives to Russia to promote products, but he didnt see any customers for two weeks. There is a big sign in front of the shop on Moscow Street: we dont sell Chinese goods. As long as four years, Huawei in Russia has a record that only received a contract income of 38 US dollars.

Compared with multinational enterprises, Huawei has no scale and no technical advantage. It can only enter the chicken rib Market with remote, turbulent and harsh natural environment. It has attacked Africa, occupied the Middle East, captured South America, and occupied the Asia Pacific region from 0. Once it was surrounded by armed forces in Congo, bullets shot into the walls of office buildings, and shells blew up the building next door, and nearly died there.

In this market, Huawei is also known as the price butcher, lighting up the world with its low price advantage. In 1999, Huaweis overseas business revenue was less than 4% of its total turnover. By 2004, Huawei had 46.2 billion sales and 18.9 billion overseas markets, accounting for 41% of the total sales. The business scope covers more than 300 operators in more than 90 countries and regions, and has preliminary cooperation with operators in 14 regions in Europe and the United States, including Germany, France, the United Kingdom and Canada. It has once again engaged Ericsson, Nokia, Lucent and Siemens in the international market.

Therefore, they embarked on the internationalization 2.0 strategy - land for peace - to expand the European and American markets through alliances or cooperation. For example, it set up a joint venture with 3Com and carried out strategic cooperation with Motorola. By 2007, Huawei joined hands with the US mobile operator leap wireless to deploy urban 3G network construction for it. Huawei finally entered the United States and accumulated the next 1% share in 2009 to pry open the steel plate of the US market and truly become a global enterprise.

Compared with Huawei, byte skipping is much more active.

In 2012, at the beginning of the establishment of byte beat, Zhang Yiming was ready for globalization. Chinas Internet population only accounts for one-fifth of the global Internet population. If we do not allocate resources around the world and pursue products with large-scale effect, one fifth of them cant compete with four fifths at all, so its inevitable to go out to sea.

After the birth of the 2016 tremble, Tiktok is on the tiktok of the sea.

Different from Huawei, tiktok, as an Internet product, has a short and fast sea front. Through the combination of self production and acquisition, before and after tiktok went online, byte successively acquired the US short video application flipagram and the domestic short video social application Musical.ly u2014u2014As of July 2016, it has ranked first in IOS in more than 30 countries and regions, Musical.ly In the United States, more than 90 million users, close to one-third of the countrys residents Hinterland, head to head with Facebook in the U.S. market.

User growth is also costing money. Tiktok has invited Star Online celebrities to settle in and launch a large number of advertisements. In 2018, it will cost US $1.2 billion. In 2019, the advertising cost will be tripled, and it will cost US $3 million a day.

It is also different from Huawei, which has been chased and blocked by giants all the time. As an innovative product in the short video era, tiktok has swept away the past entrepreneurship, imitated the Silicon Valley model, and copied the path of American Internet companies, breaking the stereotype that Chinese Internet companies could not export business models.

Up to now, tiktok has downloaded more than 2 billion times, and the daily life of tiktok is 700 million. Zhang Xin (pseudonym), an overseas analyst of tiktok, believes that if the United States does not interfere, the user scale of tiktok will certainly surpass that of Facebook, youtube and other giants in 2020.

Zhang Yiming was elected industry leader. It is also the status of globalization in the world. Measured by quantitative indicators, Zhang Yiming is the worlds top entrepreneur. Byte hop is the worlds most valuable start-up, launching more than a dozen mobile products around the world, with more than 1 billion users.

In Ren Zhengfeis eyes, the United States is the real global market. Its not just that the U.S. accounts for half of global telecommunications spending each year. It also lies in the strong enemys encirclement. Motorola, Lucent, Ericsson and other international large enterprises take root here, which is the place where Huawei must verify its technological capability.

Ren Zhengfei visited the United States in 1994. His last stop was Dallas, an international economic and trade metropolis in North America, the worlds largest logistics distribution center, and a high-tech R & D center second only to Silicon Valley. It has more than 2250 research and development bases of world-class companies.

In the late 1990s, Huawei established a research base in Dallas, and then built a research institute. By March 2001, Huawei executives rented a floor outside Dallas, and Hu houkun was in charge, determined to tear a hole in the U.S. communications market.

Cisco, the largest telecom equipment supplier in the world, is the first to face the challenge. At the end of 2002, Cisco accused Huawei of infringing on its intellectual property rights, and soon filed a property rights lawsuit, listing a 77 page complaint, accusing Huawei of 21 charges including patent, copyright, unfair competition and trade secrets.

From the court to the public opinion arena, the smoke continued for nearly two years, until Huawei joined hands with Ciscos old rival 3Com to check and balance. Cisco took a step back. In July 2004, the two sides signed a settlement agreement.

After this battle, Huawei, as a newborn calf, singled out the U.S. communication giant, never falling behind, and soon became famous in the United States. At the same time, it also attracts the attention of enterprises and the government.

In 2009, Huawei won 1% market share among its rivals Motorola, Lucent and Ericsson, ushering in a critical moment of globalization strategy.

But honeymoons dont last.

In July 2010, Huawei took part in the bidding for Motorolas wireless business assets, which was unexpectedly defeated by Japans NOSi. According to Qiu Hao, a researcher at ZTE Research Institute, quoted by the economic reference daily, Nokias acquisition of Motorolas wireless business can not only acquire all the technologies of Huawei and Motorola in the period of cooperation, but also attack Huawei in terms of market share and replace Huawei as the worlds second largest.

In August, Huawei participated in the bidding for suppliers of sprint Nextel, which was opposed by Republican senators and put forward the excuse that Huawei might damage the national security of the United States.

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In this 20-year offensive and defensive war, Ren Zhengfei rarely spoke out. After being included in the list of entities by the United States, Huawei is still living better and better. The number of operators inspected has increased by 49%. It has more than 85000 patents in the world and occupies a strong leading position in 5g field. Up to now, in the Q1 phase of 2020, Huawei ranks first in the global 5g communication equipment market with a market share of 35.7%. According to the Q2 global smartphone market data released by IDC, Huawei has become the worlds largest smartphone sales volume for the first time with a global market share of 20%. The first half of the years performance released on its official website showed that although the growth slowed down under the influence of the epidemic, its total revenue was 454 billion yuan, up 13.1% year-on-year, and the net profit margin increased by 9.2%.

In January last year, Ren Zhengfei, in frequent interviews with Chinese and foreign journalists, specially expressed his gratitude to trump for his propaganda and letting people around the world know Huaweis good. He also promised that Huawei is confident to continue to lead the world in the next three or five years.

Different from Huaweis patent advantages, Internet products are highly replaceable, and if you do not advance, you will retreat. Tiktoks two core markets, India and the United States, have been banned successively. CFIUS of the United States requires byte to sell tiktoks U.S. business. At present, tiktok needs to stop loss in time and sneak around the corner.

As of June 15, tiktok had 5.5 million, 5.4 million, 4.4 million, 3 million and 3.5 million monthly active users in Germany, Britain, France, Italy and Spain, according to a survey report released by takesomerisk. Europe is still a blue ocean.

Video capture of tiktok, President of France

At the same time, tiktoks operations need to evolve. Zhang Xin said that although tiktok achieved good results and grew rapidly, the problems were also obvious. According to the data survey of American users, tiktok in their eyes is just a funny software, without long-term and lasting powder absorption capacity. The company is planning to transform to content diversification in order to find new incremental market.

Under the iron curtain of technology, what will Huawei and byte jump do?

Guo Ping, Huaweis chairman in office, was outspoken in a press conference with foreign media, which was a counter measure: the US Congress has been unable to provide (legal) evidence to support its restrictions on Huaweis products. At the same time, he also claimed that Huawei has evidence that the U.S. government is suspected of invading Huawei servers.

In an interview with CNN of the United States, Ren Zhengfei was equally positive: the separation of three powers in the US national system and the promulgation of a bill prohibiting Huawei after trial have violated the law. Whether (litigation) can succeed or not, Huawei has to compete with the United States in a wide range.

Ren Zhengfei also mentioned that Huaweis survival does not have any problems. Huawei has more than 90000 patents, and has registered more than 11500 core patents in the United States. American enterprises are also using Huaweis patented products. After the United States and China were disconnected, it was the loss of American companies, the United States lost a market with a population of 1.3 billion.

Zhang Yiming mentioned two key words in his two open letters. He did not agree with them and did not give up. We do not agree with the requirement that US CFIUS must sell tiktoks US business and do not give up exploring any possibility. He also mentioned that he was confident in tiktoks future.

This is Ren Zhengfeis and Zhang Yimings attitude towards us bullying. It is also the consensus of Chinese companies. On August 4, Kaifu Lee responded directly: it is inconceivable that the United States accused tiktok without evidence.

On the evening of August 6, an administrative order in the United States directly pointed to Tencent. Tencent issued a clarification notice in the HKEx, claiming that it was reviewing the potential consequences of the executive order in order to better understand its impact on the group.

According to the research data of Huatai Securities quoted by the economic observer, most wechat users are in China. The number of users in the United States is small and the cash level is low. Being banned will not have an impact on advertising revenue. In terms of games, the U.S. regions game revenue accounts for 20% of overseas game revenue, accounting for less than 1% of Tencents overall revenue. Once banned, it will have little impact on Tencent. On the contrary, half of the game industry in the United States will suffer.

According to the White House, the executive order is limited to wechat and wechat related companies, not game companies held by Tencent.

In terms of byte, it issued a strong statement against the US governments administrative order: Aiming at the US governments failure to follow due process of law or act in accordance with the law, byte will take all possible measures to ensure that the rule of law is not abandoned and that companies and users are treated fairly.

Like Huawei, byte also chose to resort to legal means to protect its rights and interests. If the U.S. government fails to give byte justice, byte will go to U.S. courts, the statement said.

Since 1995, two generations of entrepreneurs have worked hard. Under the background of globalization and Internet economy, Chinas high-tech products, services and business model innovation has finally reached the forefront of the world. Unfortunately, Chinese technology companies are fatally confronted with the political cycle and the iron curtain strategy of science and technology in the United States.

However, generations of entrepreneurs have always firmly believed that high technology is the most critical driving force for the world economy in the next decade or two, and no external bullying or so-called iron curtain can affect their confidence in globalization.

[reference

1. Huaweis global enclosure war will usher in a critical moment of transformation this year, China business daily, April 20, 2000;

2. China has become the key Internet enterprise development, US companies gather to seize the opportunity, Sohu it, June 5, 2005;

3. Chinas enterprises are facing big test after Chinas entry into WTO, November 30, 2004, dongfang.com;

4. Professor Qian Yingyi, Dean of Tsinghua Institute of economics and management, talks with Zhang Yiming, founder and CEO of todays headlines, March 22, 2018;

6. Time: Top 100 most influential people in the world in 2019: Ren Zhengfei and Zhang Yiming on the list, Phoenix technology, April 18, 2019;

7. Huawei: the United States will always be unable to provide evidence, so it is forced to take legal action, global times, March 7, 2019;

8. Zhang Yimings visit to Silicon Valley: the golden age of Chinese technology companies is coming, it times weekly, August 6, 2020.

Picture source: visual China

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