How Important is Huawei to China?

Huawei is the wonderland for China’s top scientific and technological talents.

Graduates of Tsinghua University (China’s top science and technology institution), ranked Huawei as the top employment choice in 2019.

In 2018, the 23 best science and technology universities in China sent 4,621 talents to Huawei.

Huawei recruitment of graduates in China

What Huawei represents is no longer just a company, but a pool for the combined strength of Chinese talent, technology, and education. If Huawei fails in the international market, it means that Chinese companies’ ability to attract the country’s top scientific and technological talent will be lost.

Many may say, if Huawei is down, there are still other companies that can attract talents in China. Please note that these technology talents do not come to Huawei simply for a high salary, but rather for Huawei’s international market and R&D capabilities, as well as for the platform to enhance one’s horizons and provide more room for development.

If Huawei fails, then what China loses is the collapse of the entire high-tech talent market and technology industry chain.

Fortune 500 companies - Huawei High Tech

Huawei is the most technologically advanced company in China’s Top 500.

Tencent’s overseas revenue share is less than 10 percent, Alibaba’s overseas revenue share is about 20 percent, while Huawei’s overseas revenue share was once close to 70 percent.

Once Huawei fails, it heralds the strangulation of China’s top 500 companies that are most likely to challenge U.S. global technology and platform layout. After Huawei, it will be very difficult for China to create a similar international technology platform company.

Huawei may not be that important to the world, but it is critical to China to overcome the middle-income trap.

Without Huawei, China would most likely be Turkey in the future. While the industry appears to be richer, more wealth creation comes from domestic demand rather than international competitiveness.

Previous

Similarities and Differences between the US Sanctions against Huawei and Alstom

Where does China Lag behind the US?

Next

Leave a Comment