Rising Asia and American Hegemony by Paul Hong & Young Won Park

Author:Paul Hong & Young Won Park
Language: eng
Format: epub
ISBN: 9789811376351
Publisher: Springer Singapore

7.4 Challenges of Huawei

As of May, 2019, Huawei faces another huge challenge for global market acceptance. As a part of US rivalry strategy against China, Trump Administration targets Huawei technologies by disrupting its access to critical US suppliers. For instance, Google has cut Huawei’s Android access. Google has suspended all business with Huawei “that requires the transfer of hardware, software and technical services except those publicly available via open source licensing”. Current Huawei phones will continue to have access to services including Google Play and security from Google Play Protect because Huawei has been one of “Android’s key global partners”. Yet, it is unclear how the business interests and relationships between Google and Huawei will play out. Ultimately, the impact of US government actions on Huawei and US firms depends on how US-China rivalry is resolved.

Defenders of free trade have not remained silent. George Gilder (2019) asserts, “Huawei isn’t a problem. It’s an opportunity to revitalize the U.S. economy and enhance its digital infrastructure. The U.S. should embrace Huawei as a triumph of the American-led system rather than push it into the arms of Chinese hard-liners who revel in autarkic dreams”. Yet, such sympathetic statements do not reflect the majority opinion.

Building the image of a global brand requires the support of the prevailing international order. Even the most prominent firms, if being thrown into the rivalry storm of nations and, are singled out on a watch list for examination and investigation from the market. Huawei’s case suggests a critical test that Chinese global firms must pass through. Huawei’s phenomenal growth certainly deserves respect and its achievement is worthy of wonder. Criticisms against Huawei allege “thefts” from its tech partners like Cisco Technology Inc., and T-Mobile US Inc., and Motorola Inc.—to name a few. However, its “wolf-like organizational culture” that focuses on rapid results by all means has reached the ceiling. Global market leaders like Huawei must excel in ethically transparent behaviors beyond outstanding productivity and competitivenss.

In the following chapters, we focus on how firms with relatively free access to international markets engage, grow and thrive in emerging markets.

References

Balcet, G., Wang, H., & Richet, X. (2012). Geely: A trajectory of catching up and asset-seeking multinational growth. International Journal of Automotive Technology and Management, 12(4), 360–375.

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