Ren Zhengfei, founder and CEO of Huawei, said in a conversation with two US scholars Monday that revenues will be $30 billion less than forecast over the next two years. But setbacks cannot stop Huawei from moving forward and the company's revenue will bounce back in 2021. He said "we are the birds that will never die." In our view, this will be the doctrine of Huawei's development. The Chinese tech titan's situation may also typify the future growth of China's semiconductor industry.
It is very important to realistically assess the hurdles. It is impossible for any enterprise or even an entire industry to feel easy when being persecuted by a superpower to this extent. We need to do an objective analysis of the difficulties and respond in a constructive way.
Few Chinese believe that Huawei and China's semiconductor industry can be easily crushed. Many weaknesses of China's semiconductor industry have been bared as the US has upped the heat, but its resilience and vitality are obviously underestimated by the US.
If it costs Huawei $30 billion and two years to weather this wave of attacks from Washington, and the tech giant emerges stronger, the lesson is worth the cost. We believe that Huawei, which has always been pragmatic, can do what it says.
China's semiconductor industry, including other high-tech industries, cannot get around this encounter with the US if they want to grow stronger. In terms of keeping a low profile and honesty, Huawei is a good example in the world. But did the US let it go? Now almost everyone on Earth knows that Huawei is the target of maximum pressure by Washington because it is leading in 5G.
Thirty years ago, the US used various means to annihilate the rise of the Japanese semiconductor industry. Today it is targeting China. The roots lie in the way technological advances in Japan and today's China have struck a raw nerve of Washington.
"That which does not kill us, makes us stronger." This quote by German philosopher Friedrich Nietzsche has been frequently used on the Chinese internet recently. It has been taken by netizens as a vivid portrayal of Huawei as a private enterprise bravely resisting the crackdown by Washington. It also represents a general optimism among the Chinese about fighting back against the US-launched trade war. The pressure from the US has certainly caused difficulties for us, but it has also resulted in a better understanding of China's current coordinates and future direction.
Painful lessons have taught us time and again that strength is the only thing that matters. Huawei and the semiconductor industry as a whole need to hone their skills and come out of the quagmire as soon as possible. We are now facing fierce attack halfway up the mountain, but when we do reach the top, Washington will be willing to shake hands.
External pressure has strengthened unity in Chinese society and given the people a better understanding of the word "unity." Today's China needs not only the solidarity of society, but also the solidarity of and mutual assistance among different industries. With help from the Chinese people's wisdom and diligence, coupled with unity, it will be invincible.
