The United States blocked Huawei, hurting the global supply chain

When the United States abused the export ban, the board hit Huawei, but it hurts in the global supply chain, and of course, includes American companies.

According to Reuters, the US Department of Commerce recently said that the United States will soon reduce restrictions on Huawei, and the US Department of Commerce actually allows Huawei to purchase US goods to help existing US customers maintain network and equipment reliability. Previously, the Trump administration listed Huawei as an “entity list” for export control by the Ministry of Commerce on the grounds of national security. American companies would have to obtain government permission before they could sell technology products to Huawei. At the same time, Trump signed an administrative order to declare that the telecommunications industry is facing a "state of emergency", in fact, prohibiting Huawei from participating in US telecommunications equipment, especially the construction of 5G equipment networks.

In just two or three days, the US Department of Commerce opened a gap. The fundamental reason is that the US cut off Huawei's global supply chain has had a serious impact on its own interests.

When the news of Huawei's ban was passed, the stocks of US suppliers fell sharply, including Qualcomm and Broadcom. The object of the US to suppress is Huawei, but why is the stock of domestic companies plummeting?

The reason is that the global economic system has undergone a historic change. The main body of the global market is the enterprise, and the products traded are not finished products. For example, computers, smartphones, airplanes, etc., the production process of these complex commodities has broken the border of the country. Apple phones are not all produced in the United States, and Huawei mobile phones are the same. The connotation of market relations is not as simple as buying and selling, but a complex network of supply chains.

The original intention of the US government is to exclude Huawei from the construction of 5G in the United States, and also to delay Huawei's pace in 5G construction. If Huawei is only a Chinese company, then the US blockade may achieve isolation. However, the global supply chain network has formed an interdependent community between countries and enterprises. Huawei produces not only mobile phones or telecommunications equipment, but also objectively organizes the production of global telecommunications equipment. For a global company like Huawei, the responsibility is not only to produce goods or provide services but to build a stream of production. Just like a river, Huawei does not provide river water but manages rivers. And this is the new trend of global economic development, and it also represents the transformation of the corporate mission.

In the era of the supply chain, there is competition among enterprises, but competition is the ability to cooperate. Huawei has a 28% share of the global telecom equipment market, far exceeding Ericsson and Nokia. Huawei's 5G contract far exceeds that of other companies. The U.S. Department of Commerce’s ban appears to be a “declaration of war” against a company, but behind Huawei is a complex supply chain that is interdependent, including many American companies.

Any company like Huawei is represented by the advancement of human technology and the progress of human society. Qualcomm, Broadcom, and other companies are Huawei's suppliers, and the market of many high-tech companies in the United States is mainly concentrated in the Greater China market. When the US abuses the export ban, the board hits Huawei, but it hurts the global supply chain. Also includes American businesses. It can be said that the United States’ ban on Huawei is, in fact, an injury to the global scientific and technological community.

The driving force for technological advancement comes not only from innovation but also from market applications. High-tech companies like Huawei have integrated global innovation, design, manufacturing, marketing, and other elements to form a global chain of technological development. This powerful chain does not belong to a certain country but belongs to the whole world. This is also a structural feature of the new Sino-US relationship, which also means that the correct choice between China and the United States is cooperation.