Similarities and Differences between the US Sanctions against Huawei and Alstom

Alstom and Huawei have so much in common that Alstom is seen by the French as the crown of French industry, and Huawei is the technology leader of Chinese companies:

1. They’re all industry giants.

Alstom has its pride of place, with world number one in hydropower equipment, world number one in conventional islands for nuclear power plants, world number one in environmental control systems, world number one in the Ministry of Transport’s ultra-high speed trains and high-speed trains; world number two in the urban transport market, regional trains, infrastructure equipment and all related services. It is also the ruler of core technologies such as French power, carrier power, energy and transportation. In competition with the General Electric market, the bribes were caught by the Americans through spying.

Alstom - industry giants

Huawei is the world’s largest communications equipment manufacturer, the world’s largest manufacturer of base stations, fixed networks, optical transmission, telecommunications routers, core networks, microwave and communications power supplies, and the world’s largest supplier of base station antenna systems, solar inverters; the world’s second largest mobile phone company; Huawei’s HiSilicon is the world’s top 10 semiconductor companies. Huawei also has extensive business in storage, database, cloud, enterprise business, etc.

2. How does the US crack down on these two companies?

Similarities

1. Both use judicial strikes and use the kidnapping of company executives as a bargaining chip. Pieruzzi, the global head of the boiler division of France’s Alstom Group, was on a business trip to the United States and was brutally arrested by FBI agents at New York’s JFK International Airport before he even got off the plane. Huawei CFO was roughly arrested while passing through Canada.

2. Both use espionage. The U.S. Department of Justice has access to records such as Alstom’s massive internal emails. The United States went even further with Huawei, directly hacking into the network for more than a decade until Snowden broke the news.

3. Both use public opinion strikes. It’s all about smearing the company in question as bad company. Because bribery is immoral in Europe and America, Alstom was beaten to death in public opinion.

The U.S. has launched a state propaganda machine, attacking Huawei through media interviews, TV interviews, press conferences, U.S. social media and other channels.

4. Both home countries are permanent members of the Security Council, one with the European Union and the other with China as its background, but the Americans are still doing what they want, and they are very rampant.

Huawei - Ren Zhengfei

Differences

1. The U.S. uses incredible political tactics against Huawei. A state of emergency was declared, prohibiting government entities from using Huawei’s products and equipment and prohibiting domestic operators from using federal subsidies to purchase Huawei products. The inclusion of Huawei in the list of entities does not allow Huawei to obtain parts supplies from the United States.

2. The U.S. uses diplomatic means, Trump, Pompeo, Pence, U.S. security advisers, etc., to put pressure on the other countries. It is unprecedented for a superpower to target a commercial company in such a despicable manner.

3. The U.S. uses a multi-departmental attack mode against Huawei, the Department of Justice, the Department of Commerce, the FBI, the diplomatic department and the White House together, and a bunch of lawmakers to fight with.

4. The United States punished Huawei before trial and broke the confession before the court could deal with it.

It can be said that Alstom is treated as a conflict between two parties; but Huawei is treated as a conflict between two enemies. It’s basically close to launching a missile at Huawei.

Results

Alstom was split up and acquired by GE. Huawei was still alive and fighting back hardly.

Alstom acquired by GE

So will Huawei be defeated? It won’t.

First, Huawei’s morale and fighting spirit are high, and the strategic thinking and determination of Huawei’s corporate leadership, such as Ren Zhengfei, are not comparable to those of Alstom’s board members.

Second, China has a huge single market, which is not comparable to a consortium like the EU. The Chinese government is also more independent than France.

Third, the motives of the United States to crack down on Huawei are too vicious to be accepted by Huawei customers.

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