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Hong Meng’s false and real, Huawei’s advance and retreat

via:CnBeta     time:2019/7/22 8:44:45     readed:152


Huawei Mall

One day after the incident, Ren Zhengfei and his wife went to the cinema to watch a "Star Trek". The male lead could not find a person after 90 years of freezing. He opened the dormant warehouse and pulled out another person to accompany him. In the few minutes after the elevator went off the field, he felt lonely and depressed for a long time.

"I don't think the world can't control it in the future," he said to his wife. "I may be a little depressed."

After a few minutes, he returned to normal.

At the end of May, in a small areacoffeeDuring the discussion, he said that the matter of emotional management was weak in the past, and now it is solid and resistant.

Entrepreneurship is not easy. Since 2000, Ren Zhengfei has suffered from more and more serious depression. Every time he wants to commit suicide, he calls Sun Yafang, the then chairman of Huawei. "I want to commit suicide, come and save me!"

After finding the root of the disease, Ren Zhengfei began taking medication. Around 2006, depression was completely better.

In the case of depression, Ren Zhengfei’s coping style reflects his style of crisis management: first, “know that this is a disease, and you must save yourself at a critical moment.” Second, “I am ill to find a reasonable treatment, believe in science. treatment".

Huawei has been established for 32 years. From scratch, from domestic to global, from individual arms to group army, it has finally formed synergy, embarked on a peak, and is ready to climb the next mountain.

In the past few years, Huawei has successively consolidated telecommunications,Mobile phoneThe strong position of the field, the cloud-based enterprise digital market has also begun to develop rapidly.

According to the previous plan, in the next two or three years, the company will combine its own accumulation in communications, terminals and cloud to attack the global 5G market and attack the next hill. This is a direct competitor on the way up the mountain. Almost into the no man's land.

The suppression of the US government has disrupted the pace of Huawei.

The current problem of Ren Zhengfei is how to maintain Huawei's progress in the political warfare, legal warfare, technical warfare and public opinion wars one after another. First, we must save ourselves; second, we must save ourselves.

A few days after Meng Xiazhou was detained in Canada, Ren Zhengfei signed a series of Huawei reform documents. These documents have been prepared for a long time and will be issued on the same day. The consumer business (mobile phone business), one of Huawei's three major business lines, began to take the lead in reform, and the operator business began to reform.

These reforms are known by the outside world as Huawei's "prepared tires program." When meeting in a small area at the end of May, Ren Zhengfei said that it was two years earlier than the node he envisioned. If it happens again in two years, he may be more calm. "We can't change the external environment, first change the interior to meet the external environment."

The external environment has changed almost every day. The Canadian court decided to hold another session on September 23, which will further clarify the future of Meng Zhouzhou. On July 10, the US Department of Commerce decided to relax the list of equipment embargoes for Huawei, allowing some companies to supply Huawei. The Sino-US high-level negotiations seem to have opened a gap in the deadlock.

The current problem of Ren Zhengfei is how to maintain Huawei's progress in the political warfare, legal warfare, technical warfare and public opinion wars one after another. First, we must save ourselves; second, we must save ourselves. Figure / Visual China

However, since Ren Zhengfei ventured to sign a series of Huawei internal reform documents six months ago, Huawei's spare tire program has pressed the start button. The outside world is most concerned about whether Huawei will release its own operating system, Hongmeng. Hongmeng is indeed one of Huawei’s most important spare tires. However, if you analyze Huawei’s business, law and public opinion, you may know a new and slightly stranger. Huawei.

Hong Meng

The tightening of the US government may bring Hongmeng’s “right time and benefit”.

The earliest to push Hongmeng to the front desk is Yu Chengdong, president of Huawei's consumer business. In March of this year, Yu Chengdong revealed in an interview with German media that Huawei has developed its own operating system to prevent US technology giants from no longer authorizing existing systems. At that time, Yu Chengdong said that Huawei had already prepared its own operating system. If necessary, Huawei would be ready to start the B plan.

On May 21 this year, Yu Chengdong further said that the fastest this fall, and at the latest next spring, Huawei will launch its own operating system.

This operating system will open up mobile phones, computers, tablets,TV, car, smart wear, unified into an operating system.

Yu Chengdong said that this is an operating system designed for the next generation of technology, compatible with all Android applications and all Web applications. If the Android application is recompiled, the running performance will increase by 60% on the Hongmeng operating system.

This sounds exciting. Especially at that subtle key node.

On May 15, US President Trump signed an executive order demanding that the United States enter a state of emergency. US companies must not use telecommunications equipment produced by companies that pose a risk to national security. After Trump signed an administrative order, the US Commerce Department issued a statement on the 15th that it is including Huawei and its 70 affiliates in the US "entity list", prohibiting Huawei from obtaining US companies without US government approval. Components and related technologies.

Subsequently, Google's parent company, Alphabet, stopped the Huawei-related business and services, including hardware, software and technical services, including its smartphone operating system, Android, as required by the US Department of Commerce.

Yu Chengdong said that we are willing to continue to use Google andMicrosoftBut it was forced to Liangshan.

In the years when Huawei's mobile phones have gradually emerged, news about Huawei's development of its own operating system has appeared. However, according to Caijing reporters, Huawei is determined to develop an operating system in 2012. In the same year, the United States against ZTE and Huawei. The two companies launched investigations and congressional hearings, which touched Huawei's sensitive nerves. Since then, Huawei has made up its mind to build its own operating system.

On June 24 this year, Ren Zhengfei further disclosed some details in the interview with foreign media and corrected some of his claims. He said that Hongmeng is not for mobile phones, but for the Internet of Things, such as autonomous driving, industrial automation. In addition, one of the advantages of Hongmeng is the ability to precisely control the delay below five milliseconds, even to the millisecond or even sub-millisecond.

On July 18th, Huawei's director and senior vice president Chen Lifang once again stated that the company's Hongmeng operating system is not designed for smartphones. Huawei smartphones will continue to use Google's Android operating system. The recently submitted Hongmeng operating system trademark is mainly for industrial use. Earlier, some industry professionals close to Google told Caijing reporters that Huawei and Google had closely discussed ways to continue cooperation after the US government ban was issued. Google obviously does not want to lose Huawei, and Huawei does not want to leave Google.

Combining Huawei's special situation at important time nodes, we can roughly draw four inferences: 1. Hongmeng appeared as a “prepared tire” at this time, but Huawei has been planning for a long time; 2. Mobile phone is the most directly affected business line. If there are no variables of non-commercial factors, Huawei does not intend to introduce the Hongmeng system at this time. This system is not yet fully prepared. 3. In the past seven years, the technology and industrial ecology have undergone tremendous changes. Hongmen’s positioning and technology have been iteratively evolved. ; 4. Although more self-protection, but at this time the trend to launch Hong Meng, the timing is not bad.

Whether it is imaginary or real, Huawei’s mass today has made it impossible for the outside world to ignore its key actions. Many professionals who have been interviewed by Caijing reporters are optimistic about Hongmeng.

First, many senior analysts in the mobile phone industry said that Hongmeng should have no resistance in China. Globally, this node is not bad now. If you enter the Internet of Things era and the mobile phone is deeply bound to the operating system, it may be a disaster to do system updates.

At the beginning of July, Google launched the developer website of Fuchsia OS, which was considered as the official start of the Internet of Things. Fuchsia is seen as Google's adaptation to the Internet of Things era, replacing Android's next-generation operating system.

Android currently accounts for 84.5% of the global smartphone operating system, but it is not perfect, and the shortcomings of fragmentation, low efficiency, and ecological chaos have been criticized. At the same time, it has no corresponding dominance for the desktop market and the new AR/VR, Internet of Things and other fields. The most radical way to create a new operating system is to create a new era of all historical issues.

At this time, it is the window period in which the new generation operating system replaces the old system. If Huawei acts at this time, it will have a certain degree of "time".

Second, based on Huawei's current shipments of smartphones, the expectations of Hongmen are gradually increasing. Based on the opinions of many industry analysts, Hongmeng has no major problems at home. Liu Gang, head of 360 mobile assistant, told the Caijing reporter that if the pre-installed Hongmeng shipment threshold is 10 million, developers will compete for adaptation and no one wants to give up this market. Huawei is located in China, and has a huge population and resource dividends to be utilized. The Chinese market will become a fertile ground for Hongmeng's growth. This is "land".

Third, when the United States is pressing hard to continue high-pressure Huawei, the strength of domestic support for Huawei is at its peak, and the recognition of Huawei by ordinary consumers is rapidly increasing. According to statistics from IDC, a third-party market research organization, China’s smartphone shipments in the first quarter of 2019 were 88 million units, down 3% year-on-year. However, Huawei's mobile phone shipments were 29.9 million units, a year-on-year increase of 41%, accounting for 33.98% of the market share, ranking first.

When talking about the contrarian market of Huawei mobile phones, an anonymous Huawei person who knows that the mobile phone market is fully mature, it is difficult to complete large market expansion under the normal conditions of technology and experience. At this time, the power of feelings is It looks unexpected.

A mobile product manager of a large domestic Internet company told the Caijing reporter that Internet companies are now measuring whether they want to cooperate with Huawei, and they must consider the positional factors with extra care. The attitude of large companies to Huawei is very sensitive.

Chen Hai, vice president of Tourism App's Cellular Cell, told Caijing that the apiary has begun to prepare for the application of Hongmeng. “Before planning, it is well prepared. Android may not be able to migrate directly, but most of them can be reused, not too complicated. ".

At least in China, Huawei is now in a state of "human harmony."

The danger is organic, and the Tibetans are defeated. Looking at the history of Huawei's brutal growth, it seems that there is no product or business before, and it can have such a clear state of "time and place."

However, the challenge of Hongmeng is also realistic.

According to the few information disclosed by Huawei's top executives including Ren Zhengfei, Hongmeng will be compatible with Android. This can be understood as Huawei's step-by-step compatibility with Google's footsteps. The advantage of this is that the application vendor's willingness to follow and the cost of adaptation are reduced. The downside is that Android is dynamic. Every year, there are new standards, new API interfaces, new features, and Huawei's follow-up costs will be very high.

Of course, combined with Huawei's volume today, the wealth of cash flow and the determination to do this, this may not be a big problem.

In addition, Hongmeng can not survive and develop in the long run, depending on whether Huawei's developer ecology is doing well. A senior software engineer told Caijing that Google and Google had started to push kotlin to developers after finishing the JAVA API lawsuit. This is a programming ecology that Google has pushed. This ecology pleases developers, such as operating technology sharing, giving back to developers, helping some entrepreneurs to do apps, or directly giving developers money, gathering enough popularity. And open source a lot of technologies, such as artificial intelligence, cloud computing and big data, UI design.

This shows that Google's appeal in developers is strong enough, and the interaction with developers, Huawei may not be weak, but the experience is obviously not rich enough.

In the interview on June 24, Ren Zhengfei did mention that the most important thing for the operating system is to build an ecosystem. It takes about two or three years to re-establish a good ecology.

However, this round of discussion about Hongmeng is not based on any substantive actions of Huawei.

In early July, Huawei released news that a global developer conference will be held in August. It is widely speculated that Huawei will release Hongmeng at this conference, but a veteran close to Huawei told the Caijing reporter that the facts are Not as full as the outside world said. This conference is not a regular action of Huawei. The purpose is to attract developers. However, there are no specific conclusions on what to do or what to do.

On July 12, Huawei Chairman Liang Hua made it clear that if it can, Huawei's smart phones will still use Android as the first choice. As for whether Hongmeng will be developed into a smartphone operating system, it will be based on the actual development of the future. Depending on the situation.

From the very beginning, Ren Zhengfei stated that he does not want to be an enemy of the United States and wants to embrace the open position of the global industry. In the discussion on May 22, he once again stressed: "Do you want the country to be prosperous and strong? If you want to be rich and strong, you must learn from the good aspects of the United States."

The third-party market research organization SA continued the dispute between China and the United States, and the United States continued to pressure Huawei to issue a forecast on July 11. SA predicts that if Huawei launches 19 million mobile phones equipped with Hongmeng system this year, it will account for 0.3% of the total smartphone system. The market share of Hongmeng system will increase to 2.2% in 2020 and grow to 4.3% in 2021. It will grow rapidly to 8.7% in 2024, of which Chinese users will account for more than 90%.

At the same time, Android's market share will decline slightly from 84.5% in 2019 to 82.9% in 2020, and continue to fall to 81.1% in 2021, and 79.6% in 2022, and begin to enter the 7-character. In the meantime, iOS has maintained a market share of around 13%.

In conjunction with Huawei's upcoming Global Developers Conference, it is certain that regardless of whether Hongmeng is a mobile operating system or an Internet of Things operating system, Huawei's own operating system will soon be open to traffic.

God beast army, spare tire plan

Huawei's "Shan Hai Jing" corps have different missions, but the purpose is the same - to ensure that Huawei's four main lines of business are not "one dying"

Hong Meng is the most concerned about the outside world, but Hong Meng is not the first muscle that was shown after being sanctioned by the United States.

Since the Canadian incident in December last year, Huawei has intensively released a series of chip and server platform products. On January 7, the server chip "鲲鹏" and the server platform "Taishan" were released; in just 17 days, the 5G base station core chip "Scorpio" was released again; on March 4, the baseband chip "Baron" was released, in May, equipped Huawei self-researchrouterThe new product of the chip "Ling Wei" entered the market. In addition, the artificial intelligence chip "Rising" released in October last year, the "Hong Meng" wearing a veil, and the mature mobile phone chip "Kirin", these names are taken from "Shan Hai Jing", so far, Huawei's Shanhai Jingjun formation .

After returning to the public stage, Ren Zhengfei was willing to frequently display a picture of a scarred Soviet fighter. He repeatedly said that today's Huawei is very similar to this Soviet fighter. In history, this fighter did not crash, but instead successfully returned because the core parts fuel tank and engine were not hit. The Shanhai Jingjun Corps is Huawei's "fuel tank" and "engine".

There are indications that the size of the Shanhai Jingjun Corps is still expanding. The reporter of Caijing visited the official website of the Trademark Office of the State Intellectual Property Office and found that since April this year, Huawei has registered a number of trademarks. The same trademark name is registered in different categories according to different classifications, and the total number is close to 200. The names of these trademarks include "Suzaku", "Teng Snake", "Qingniu", "Qingxuan", "Dangkang", "Xuanji", "horn tiger" and so on.

Their missions are different, and the purpose is the same - to ensure that Huawei's four main lines of business are not "killed at a glance."

The server chip "鲲鹏", the mission is to ensure that Huawei's business survives under extreme conditions. Huawei's enterprise business product line includes servers, storage, and network equipment.IntelThe computing chip (Huawei is the top five general-purpose server vendors in the world), with Huawei, Huawei's enterprise business and cloud business can continue to operate in principle.

Some people have analyzed that because of the design of ARM core based on ARM core, if there is no US sanctions, it is difficult for Kun Peng to be reused in the short term.

A Huawei server expert told the Caijing reporter that Huawei launched R&D in 2015. After several generations of polishing, the latest 鲲鹏920 chip adopts 7-nanometer process. He believes that this product can be truly and Intel part. Model chips compete."

Like “Hongmeng”, the biggest challenge facing “Qingpeng” is the application of ecological construction, but the business revenue of the company is 74.4 billion yuan, accounting for 10.3% of Huawei's total revenue, which has limited impact on the overall business.

The "Scorpio" released on January 24 this year is regarded as a breakthrough high point in Huawei's 5G strength within Huawei. It is the world's first 5G base station core chip, with breakthroughs in integration, computing power, spectrum bandwidth and so on. If data is used to indicate its importance, the 5G base station with built-in Scorpio chip is 50% smaller than the 4G base station, the weight is reduced to 23%, the power consumption is saved to 21%, and the installation time is also less than half. At the same time, due to the significant reduction in power consumption of this chip, 90% of the sites do not need to be transformed by the mains when 5G arrives.

According to the unanimous public statement of Huawei's different business line executives, the above different types of chips are not sold separately, only as a component of Huawei products. This means that the strategy of the Shanhai Jingjun regiment is still "advanced and attackable, retreat and defendable" and is more inclined to the latter.

Huawei has a broad business line, and there are many types of chips or platform software required for various products and services. In 2018, Huawei was the world's third-largest chip buyer. The annual semiconductor procurement expenditure reached US$21.131 billion, a 45% year-on-year increase. The purchase from the US was about US$11 billion, mainly from Qualcomm, Intel, and Micron. When the US giants purchased chips, they included computer processors, DRAM memory, NAND flash memory, and some DSP chips.

After the incident in Canada, Ren Zhengfei signed, and the B plan, which involves almost all of Huawei's full line of business, was launched quickly. Caijing reporter learned that each business line has compiled a list of parts and components, the list details the names of the required parts, US suppliers, alternative suppliers, current inventory, support time and other information. In the meantime, Huawei's external situation has changed, and the list has changed accordingly, almost daily updates.

The head of a software company told Caijing that the company’s previous project with Huawei had already entered the implementation stage. After the US “sanctions” came into effect, one chip of the project could not be replaced by Japanese and Korean products or domestic products. Huawei therefore The stop button was pressed on the item.

The above-mentioned people believe that the focus of Huawei's spare tire program is whether it can guarantee survival in extreme situations, and whether the alternative is good or not is another level.

An operator executive analyzed the "Financial" reporter that Huawei's current lack of communication services is mainly FPGA chips, DSP chips and analog chips. The localization ratio of these chips is low. For example, 90% of the world's FPGA chips are used. American companies Xilinx and Intel provide, but on the other hand, the production of communication equipment is much smaller than that of smart phones, and Huawei spare parts should be able to support.

"Huawei is likely to be in the field of layout analog chips." The above-mentioned operator executives told the Caijing reporter. In other words, behind the “God and Beasts” who have registered with the official website of the State Intellectual Property Office of the State Intellectual Property Office, there is a bigger game.

"Financial" reporters are temporarily unable to assess the specific proportion of Huawei's actual animal products in Huawei's actual business products today. However, Ren Zhengfei said in the discussion on May 22 that he could not predict how long the US will continue to fight Huawei, but prepared for a lasting war of resistance.

The Shanhai Jingjun regime brought him more to survive. On May 22, he told the Caijing reporter, "Even if we are beaten with only 9,000 people, we can make a comeback."

Since the beginning of the previous year, Ren Zheng has not talked about "Shangganling" frequently. In the coffee discussion at the end of May, Ren Zhengfei explained that Shangganling is a high-tech land that China and the United States compete for, not just 5G, but also many aspects of technology.

One of the sentences is quite profound: "Shangganling does not fight grain, but Shangganling lost it, and there is no place to fight food."

For the Huawei Shanhai Jingjun and the spare tire program, the industry has more empathy. A deputy general manager of a listed company in science and technology expressed his gratitude to the reporters of Caijing: "In the technology industry, people especially believe in the concept of global division of labor. It is good to do a good job in peace of mind. Now it is found that strengthening independent research and development and doing quality chain management and control. It's actually harder but more important."

Some US companies are uncomfortable with Huawei's spare tire program. The information that Caijing reporters learned from multiple channels shows that some American companies hope that Huawei will give up the spare tire plan to some extent. In exchange, they are willing to lobby the US government to abandon the "sanction" of Huawei. "It's not about abandoning R&D, but giving up mass production. In the field of chip design, the threat of a lab chip is much smaller than that of a mass production product," said a person close to the inside.

Paradox game, litigation counterattack

Huawei has a bottom-line thinking in its business, and it has "resolutely counterattacked" in international public opinion battles and litigation wars.

On Friday morning, June 28th, US local time, Scott Kennedy, deputy director of the Center for International Strategic Studies (CSIS) and China Research Project, launched a debate around Huawei. The theme of this debate is "Can the United States should strictly limit Huawei?" The roundtable theme discussion format commonly used by think tanks is not used, and both the pros and the cons need to come up with a clear position.

Gan Side hopes that this debate may stimulate a rational discussion around Huawei on a larger scale in the United States.

Many Chinese faces appeared in the audience, and the mainstream media such as the Washington Post also attended. Before the opening, the audience voted: 61 votes were cast to Huawei, and 67 votes were against. After the debate, the results were transferred and the ratio of votes was 75 to 72.

The Caijing reporter witnessed the whole process of the debate. The debate lasted for an hour and a half, far less intense than imagined.

Erin Ennis, senior vice president of the US-China Business Council, is one of the debaters. She believes that in the Western world, Huawei has serious problems of transparency and trust, as well as product safety issues. If it wants to be a world-class leader, it must be strict with the highest standards, and the world must be heard.

"Transparency" is the focus of Huawei's global efforts after the crisis. However, the United States, and even the entire Western public opinion field, has a pre-emptive inertia thinking for Chinese companies, especially Huawei.

On April 24 this year, Ren Zhengfei said in an interview with the US media that the United States does not trust Huawei and has been fighting Huawei for more than a decade. The reason for this announcement is that "it (the United States) uses a legal approach to combat Huawei. We think it is necessary to clarify. If it is not clarified, it will make the world's misunderstanding deeper."

Since then, Ren Zhengfei has been interviewed by several Chinese and foreign media almost every month. Some of Huawei's key laboratories and research institutes that have not been opened before are also open to Chinese and foreign industry professionals.

A live audience from the American elite told the Caijing reporter that this debate is a scaled-down version of the US public opinion field. It is easy to get a random assertion for Huawei, but it extends to more specific and rational content, in a one-sided public opinion atmosphere. , sinking in silence, almost inaudible.

The European public opinion field has changed even more than the United States. This is due to the fact that Huawei Telecom equipment and mobile phones have been weakened to strong in Europe in recent years, from the big market to the strong brand.

At the end of last year, Bloomberg, president of Huawei's Western Europe Region, recalled in an interview with Caijing. In all overseas markets of Huawei, localization in Europe is the most difficult because of cultural superiority. In 2007, when he first arrived in Europe, he was challenged by his local employees every day. "They don't recognize Huawei and don't recognize Huawei's way."

In the past few years, Huawei's approach was to find as many local elites as possible that fit Huawei's values ​​and empower them. At present, the backbone of Huawei's Western European team is local. Huawei's Western European terminal team has grown from less than 200 in 2016 to more than 600 today, with more than half being local employees. The localization of Huawei France is more thorough. Of the total 950 people, 80% are locals.

Huawei has expanded its European market and indeed brought real benefits to Europe. Therefore, when the United States began to display a series of combination punches for Huawei, Europe was basically in a neutral state, neither willing to lose the United States nor willing to lose Huawei (and China). For Huawei, this is already a gift in the snow.

Huawei's global public opinion monitoring shows that only 25% of the voices in the international market are supportive and benign, and 75% of the voices are alienated and opposed.

In China, positive public opinion about Huawei's incident has taken the upper hand. This aspect stems from the goodwill of the vast majority of ordinary people to Huawei, and the Chinese public opinion field has an impression of the US government. This brings up another problem - the Huawei incident is easily linked to blind patriotism.

In May of this year, Ren Zhengfei accepted interviews from more than ten media in China. The reporter of Caijing told Ren Zhengfei that there are two distinct sentiments from Huawei: First, very clear patriotism, raising Huawei’s support to support patriotism. Second, Huawei kidnapped the patriotic sentiments of the whole society. If it is not Huawei, it will not be patriotic.

Ren Zhengfei responded at the scene: "You can't say that you can use Huawei products to be patriotic. You don't need to be patriotic. Huawei products are just commodities. If you like them, you don't like them. Don't use them. Don't be linked to politics."

This should be the most worrying point for Huawei on the global public opinion front.

Linked with politics is one of the points that the US public opinion field accuses Huawei. The Chinese public opinion field and the international public opinion field have become mutually integrated, and the Huawei incident has risen to irrational nationalist sentiment, which has brought greater pressure on Huawei's international public opinion field.

The globalization process of Chinese companies has just begun. The construction of global cultural identity and public opinion is a long process. It is a further supporting role for products and markets. It is indeed very important. In Huawei, the crisis occurred and pushed this auxiliary front to the main battlefield.

Another frontline of Huawei's cooperation with the public opinion front is legal litigation and patent gaming.

In March and June of this year, Huawei launched two highly lethal lawsuits in the United States, suing different departments of the US government.

On March 6, Huawei filed an indictment with the Federal District Court for the Eastern District of Texas. The eight defendants were the Government of the United States, Emily Webster Murphy, Director of General Services of the United States, Alexander Acosta, Secretary of Labor, Alex Azar II, Secretary of Health and Social Services, and Alex Azar II, Secretary of Health and Social Services.educationSecretary of the Interior Becky Divich, Secretary of Agriculture Sony Berdu, Secretary of Veterans Affairs Robert Wilkey, acting Secretary of the Interior David Bernhart (now Secretary of State).

The complaint found that section 889 of the John's McCain Defense Authorization Act (NDAA) for FY2019 violates the Constitution of the United States, which restricts law enforcement agencies, federal government contractors, federal loans and grant recipients from purchasing and using equipment produced or supplied by Huawei and its subsidiaries and subsidiaries.

Huawei believes that Article 889 of the NDAA violates at least three constitutional provisions:

First, it violates the deprivation of public rights bill and punishes Huawei separately – blacklisting it, damaging its reputation, denying its specific commitment to comply with US law, and denying that Huawei can fight for innocence and avoid sanctions through any procedure. .

Second, it violated the due process clause and selectively deprived Huawei of its freedom - severely restricting Huawei's commercial freedom and refusing to give Huawei any legal right to object to the allegations.

Third, it violates the vesting clause and the resulting separation of legislative powers. The US Congress ruled that Huawei is “guilty” rather than letting the US executive and court rule any such allegations.

Huawei therefore sued and asked the court to declare the ban unconstitutional and prohibit its implementation.

Chen Youxi, the director of Zhejiang Jingheng Law Firm, believes that this kind of transnational major lawsuit against state behavior is difficult to succeed without careful research and profound legal skills. Huawei’s lawsuit, which seizes the margins of legislative and executive powers in the US Constitution, first violates the law by procedural violations, and then expands the results of the war, and asks the court to review the specific provisions of the NDAA Act. He even believes that, given the particularity of the case, it is likely to be included in the history of the United States.

Professor Zhao Hongrui, Dean of the School of Humanities, Social Sciences and Law of Harbin Institute of Technology, served as the global vice president and chief legal officer of ZTE Corporation (2017). He believes that this litigation challenge is a more effective counterattack made by Huawei. "It is relatively rare for a company to sue the US government for unconstitutionality. Huawei has just found such a common law and social value, and uses legal rights."

After the case was filed, on May 28, Huawei submitted a summary judgment motion. Huawei said that its "constitutional challenge" is "a purely legal issue." There is no real major factual dispute in the case, and it is hoped that the court will make a judgment as soon as possible. According to information displayed by the US court system, the court will hold a hearing on September 19th.

As the defendant, the US government and so on did not wait to respond. On July 3, the US government initiated a proposal and requested the court to dismiss the lawsuit.

The head of the Huawei Legal Department told the Caijing reporter that Huawei is still full of confidence in the case. Huawei will submit the latest case specification on August 14. "We look forward to the hearing to be held on September 19."

Another lawsuit took place in June this year. On June 21, Huawei sued the federal district courts of the District of Columbia to suspend these government departments, questioning whether their seized telecommunications equipment is within the scope of the US Export Control Regulations (EAR) and that the other party’s decision to make a release is unreasonably delayed. illegal". The spearhead is aimed at the US Department of Commerce, the US Industrial Security Administration, and the US Export Enforcement Office.

The indictment alleges that in 2017, Huawei sent several telecom equipment to the test lab in California, USA, and planned to return it to China after the test was completed, but the device was subsequently detained by the US authorities in Alaska. Huawei believes that the US Department of Commerce has detained Huawei equipment and has not made the relevant decision "illegal". "The defendant has improperly detained the equipment for 632 days."

The case has now entered legal proceedings, and the latest information from the court indicates that on July 1, the case was assigned to the presiding judge.

Zhao Hongrui analyzed that the doubts in this lawsuit are valuable: the first defendant in the case, the US Department of Commerce, is the government department that listed Huawei as the “list of entities for export control”, and is also an important party in the Meng Xiazhou case, while American business It has been nearly two years since the Ministry seized Huawei equipment. It is very important for Huawei to choose to sue at this time.

In addition to the two prosecutions, Huawei also initiated rights protection in the patent field. In June of this year, Huawei asked Verizon, the largest wireless carrier in the United States, to pay more than 230 patent license fees, totaling more than $1 billion.

Huawei is one of the main holders of 3G, 4G, and 5G core patents, and has registered and applied for multiple patents worldwide. According to the statistics of IFI Claims Patent Service Company, from 2017 to January 2019, Huawei applied for 3,195 patents in the United States.

Subsequently, Senator Marco Rubio's legislative proposal was designed to prevent Huawei from seeking compensation for patent infringement in the U.S. Patent Court. On June 27, Huawei immediately held an intellectual property press conference at its headquarters in Shenzhen. Song Liuping, Huawei's chief legal officer, publicly commented: "if such a law is passed, it will have a devastating impact on global innovation."

Zhao Hongrui commented that these legal methods adopted by Huawei have courage and strategy. Previously, there were cases of Chinese companies defending their rights overseas, but this is the first time that Huawei has sued the US government for violating the US Constitution and questioning the US Export Control Regulations.

"Huawei has found an effective entry point, not to see the move, but to raise a holistic, just legal challenge," he said.

Cat and mouse game, weighed forward and backward

At present, it is impossible to conclude that Huawei is already safe. Ren Zhengfei’s idea is to do a good job of internal work.

If we push back the time and completely arouse the node of Huawei's counterattack action, it should be May 15 this year, the US Department of Commerce will include Huawei in the "entity list."

The list of entities is the heavy hand of the United States under Huawei. It brings a series of blows to Huawei, and it also allows the winds of a series of spare tire measures such as Hong Meng to go to the outside world.

The Caijing reporter found that the American business community, Huawei's large-scale US partners, looked at the interests and demands of the US business community by observing public and non-public materials. This brings a glimmer of life to Huawei.

Ren Zhengfei mentioned many times in different interviews in the near future that American partners are very strong, and they are working with Huawei to find a solution.

The list of entities was launched only a few days ago, and the US semiconductor industry lobbied the US government to allow non-sensitive products to be sold to Huawei on the grounds that a comprehensive ban would harm the interests of US companies. The lobbying played a role. Soon, the US Department of Commerce issued a temporary general license to allow the company to purchase equipment to maintain the existing network and provide software updates for existing Huawei phones.

The license will expire on August 19, but many Chinese and American analysts interviewed by Caijing reporter believe that the US government will prolong the delay to Huawei before a thorough conclusion.

The G20 summit in Osaka at the end of June was seen as a possible turning point in Huawei's fate. At that summit, the heads of state of China and the United States met again and decided to restart bilateral trade negotiations. U.S. President Trump also made it clear that U.S. companies should be allowed to sell products to Huawei.

However, in the next few days, unlike the eager expectations of the outside world, the U.S. government will no longer release specific policies against Huawei.

Until July 9, U.S. Commerce Secretary Ross said that Huawei, the Chinese telecommunications giant, was still on the blacklist and would allow U.S. companies to sell products to Huawei without endangering national security.

It's more or less cat-and-mouse.

Lawyer (Timothy O'Toole) works for Miller, a law firm.

Therefore, it is unrealistic to judge that Huawei has entered a safe zone.

"Ren Zhengfei's consistent style is to keep putting new things in the safe house. He will not relax his vigilance for uncertain security," a key person close to Huawei's decision-making level told Caijing.

Huawei's directly affected business is the mobile phone business. 5G business is in the ascendant, bringing Huawei with the threat that the future space may shrink, but Huawei's mobile phone business has gone smoothly.

In April, Yu Chengdong, president of Huawei's consumer business, boldly estimated that Huawei would replace it in 2020.SamsungTo become the first mobile phone brand in global sales. Glory will hit China second, the world's top four, Huawei mobile phone by 2020 domestic and overseas 55 points.

Optimism continued until the first quarter of this year. Combined with the open data of Gartner and IDC, Huawei's global sales grew by 50% year-on-year. Of the 58.4 million smartphones sold, 23% came from the European market.

But in May, things changed. Once Android stops updating Huawei's mobile phones, there will be a series of services lagging behind, including security, which will eventually damage the user experience.

According to Canalys, a third-party organization, as of Q1, the overseas market accounted for 49.4% of Huawei's total shipments. That is to say, nearly half of Huawei's mobile phones are unable to bypass Android.

Huawei's internal evaluation results show that this will lead to a 20% to 40% reduction in terminal shipments. A Huawei middle-level person overseas confirmed to Caijing that Huawei began to shrink its overseas market strategy since late May. A large number of sales staff have been transferred to China. Another person familiar with the situation analyzed that the contraction was to reduce overseas costs on the one hand and to concentrate resources at home to compensate for overseas losses through domestic growth.

According to the multi-party information gathered by Caijing reporters, after May, Huawei mobile phone's domestic offensive strength increased greatly, and it glorified a large number of recruitment posts at the provincial and company level in China. A large domestic retail channel disclosed that Huawei mobile phones are well stocked in China.

Several industry stakeholders told Caijing that the strategy of making up for the losses within and outside can minimize the losses.

A key question of greater concern to the outside world is whether Huawei is likely to leave the list of entities in the near future.

Most voices believe that Huawei is unlikely to break away from the physical list in the short term.

John Mason, founder and CEO of NewFinance, LLC, told financial>reporters that the United States appeared to be inclined to interfere with competition from other countries. As long as the United States considers this to be reasonable, the measure may continue, and Huawei may continue to remain in the physical list.

Ottor is relatively optimistic. He said that Huawei's departure from the list of entities was indeed a major event, and that it was not always easy to achieve results, but the result was not "impossible". A practical proof of this view is that in the past few years, U.S. government policies, especially those related to export controls, have changed day by day, or even day by day. What seems impossible today may easily become a reality tomorrow. In such an environment, nothing is "impossible" in the true sense.

Robert Duharic (Robert Dujarric), director of the Institute of Modern Asia at (Temple University) Japan, said the U.S. accusations and restrictions on Huawei contradict each other. The United States is worried about Huawei's two problems, one is a threat to national security, and the second is a trade deficit. If pressure on Huawei is a way for China to give in on bilateral trade and force China to buy more American products, no matter how much American goods China buys, it will not be enough to soften the claim that it is a national security threat to Huawei.

Based on this contradiction of the U.S. government, Duhalik said that it is difficult to judge Huawei's position from the current node.

His speculation is that Trump may claim that he has allowed China to make "concessions" and thus ease pressure on Huawei. But so far, it is clear that Huawei and other Chinese companies will try to reduce their dependence on U.S. suppliers as soon as possible in order to prevent sanctions from being lifted or even worsened. Clearly, Huawei is also reducing its dependence on the United States and looking for non-U.S. suppliers.

So what would happen if the United States re-imposed extreme sanctions on Huawei? Duharic said he did not know the answer, and that not only the United States, but many of its allies, would try to weaken Huawei's role in telecommunications infrastructure. This is not good for Huawei. Huawei's spare tires are likely to be corrected one after another.

For a long time, John Mason, the founder and chief executive of New Finance, LLC, told the Financial Times that it was in vain to win trade or protect its own country through any restrictions.

Mason pointed out that the U.S. government's efforts have been problematic, and that many large U.S. companies have strong enough incentives to find regulatory loopholes or to circumvent restrictions in other ways.

One example is Micron Technology Inc., the largest memory chip supplier in the United States, whose CEO, Mehrotra, publicly stated in a telephone conference on June 25 that Magnesium Light had found a legal way to circumvent the ban and had restored some of its chips to Huawei.

In the light of history, Mason pointed out that the only way for countries trying to win trade or protect themselves was to impose excessive restrictions, which would ultimately hurt countries and companies seeking self-protection. When a country begins to rely on other means to maintain its position, it seems that they are losing their competitive advantage, becoming lax and losing their position in the fiercely competitive market.

For the latter, the only way to ensure competitiveness is to continuously innovate and promote their products and services.

During the coffee talk at the end of May, a reporter from Finance and Economics asked Ren Zhengfei what was your biggest fear? He answered, "The most terrible thing is that the team's will will is weak. Now, every department is talking about keeping in line and not confusing.

Xie Lirong, Chen Xiaoxiao, Zhou Yuan, Wang Lina, Jin Shuo | Wen

Mark | Editor

(The author is a reporter of Finance and Economics, and our correspondents Liu Yiqin, Intern Yang Sai and Lin Yanchen have also contributed to this article. It was originally published in Finance and Economics magazine on July 22, 2019.)

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