1. A new storm of sanctions
So, what are the root causes of this sanction? What impact will it have on Huawei's future development? What are the deeper considerations?
II. Reasons for the escalation of sanctions
Not for the mobile phone business
Regarding the sanctions storm, some people believe that this is related to Huawei's latest Pura 70 series mobile phone, because the model uses the self-developed Kirin 9010 processor. However, this view is not accurate.
As early as August 2023, Huawei took the lead in launching the Mate 60 series mobile phones with Kirin 9000S chips, and the sanctions were not introduced at this time. It can be seen that this round of restrictions is not aimed at Huawei's mobile phone business. Instead, its core target focuses on products such as Huawei PCs and tablets.
AI chips are limited
In fact, the key to this sanction is to block Huawei's access to AI-related chips. On the one hand, Intel and Qualcomm are restricted from supplying key components such as CPUs and GPUs to Huawei. On the other hand, Nvidia has also been banned from exporting any advanced AI chips to China.
This undoubtedly reflects the U.S. intention to contain the development of AI technology in China. As some analysts have pointed out, the Biden administration is trying to cut off Huawei's supply in the field of computing chips, hindering further breakthroughs in its AI technology.
For PC and tablet business
On the whole, the main target of this round of sanctions is not Huawei's mobile phones, but its PC and tablet product lines.
In recent years, Huawei has bucked the trend in the PC market, and quickly entered the top three in the industry with its self-developed Kirin and HarmonyOS operating systems. This has undoubtedly aroused the alarm of the US side, which does not want Huawei to continue to rise in this field.
As a result, the U.S. has chosen to curb the growth of its PC and tablet business by cutting off Huawei's access to key AI chips. It can be said that this is an important manifestation of its strategic shift.
3. The impact of sanctions on Huawei
The mobile phone business is relatively limited
Although the sanctions will have a certain impact on Huawei's PC and tablet business in the short term, the impact on the mobile phone business is relatively small.
On the one hand, Huawei's mobile phones have basically achieved a localized supply chain and do not rely too much on American chips. On the other hand, Huawei's self-developed Kirin chip series has also formed a strong strength to meet the needs of mobile phone products.
Therefore, we can expect Huawei's mobile phone business to continue to maintain stable development and will not be greatly affected by this sanction. On the contrary, the PC and tablet market will become Huawei's next key direction.
The PC business is facing challenges
Huawei's PC and tablet business will undoubtedly face more pressure than mobile phones.
First of all, losing the support of American chip giants such as Intel and Qualcomm will bring severe challenges to Huawei's supply of key components such as CPUs and GPUs. If you can't find a suitable alternative, it will inevitably affect product performance and user experience.
Second, due to the limitations of AI chips, Huawei will also be limited in the development and application of AI functions. This undoubtedly restricts the innovation and development space of its PC products.
In general, this round of sanctions has undoubtedly cast a haze over Huawei's PC business, which will bring a lot of operating pressure to it in the short term.
Acceleration is autonomous and controllable
However, adversity often also means new opportunities. In the face of strong suppression by the United States, Huawei will further accelerate the pace of independent innovation, so as to achieve true autonomy and control.
On the one hand, Huawei will make every effort to promote breakthroughs in key technologies such as self-developed CPUs, GPUs, and AI chips, and strive to get rid of its dependence on American companies as soon as possible. On the other hand, the application of HarmonyOS in the PC field will also be accelerated, creating a completely independent and controllable software and hardware ecosystem for Huawei.
This will force Huawei to further strengthen its investment in technological innovation and accelerate the construction of an independent and reliable industrial chain system. In the long run, this will also inject new vitality and vitality into Huawei's PC market and the entire information technology field.
Fourth, the strategic considerations of the US side
For this new round of sanctions storm, it is not difficult for us to find that behind it contains some deep-seated considerations of the United States.
Contain China's technological rise
Undoubtedly, the fundamental purpose of this sanction is to hinder China's development in key technology areas, especially cutting-edge technologies such as artificial intelligence.
The United States fears that if Huawei makes breakthroughs in products such as PCs and tablets, it will further enhance China's overall scientific and technological power and jeopardize its dominance in this area. Therefore, restricting Huawei's chip supply is undoubtedly an important strategic means to curb the rise of China's technology.
Maintain technological hegemony
In fact, this is not the first time that the United States has launched a "neck-stuck" siege on Chinese companies. As early as a few years ago, it launched a round of comprehensive crackdown on Huawei's mobile phone business.
The reason for the repetition is obviously related to the strategic considerations that the United States does not want to see Chinese companies surpass itself in any field. In his eyes, the rise of Chinese companies will undoubtedly shake their dominance in the global technology landscape and must be contained.
Domestic political considerations
Of course, we cannot ignore the role of domestic political factors in the US decision-making on this sanctions.
In the face of downward pressure on the economy and popular discontent, the Biden administration urgently needs to show its "tough stance" on China policy in order to win more political capital. The new round of sanctions against Huawei is undoubtedly its best choice, which can bring it certain "political merits".
Therefore, this round of sanctions against Huawei not only reflects the strategic goal of the United States to contain China's technological rise, but also highlights some considerations of its domestic political game.
5. Future opportunities
Although the sanctions will have a certain impact on Huawei's PC and tablet business in the short term, in the long run, it may become an opportunity for Huawei to accelerate its independent innovation.
Accelerate the independent and controllable layout
In the face of the U.S. technology blockade, Huawei will further accelerate the construction of an independent and controllable system. On the one hand, it will make every effort to promote breakthroughs in key technologies such as self-developed CPUs, GPUs, and AI chips, and achieve complete separation from dependence on American companies as soon as possible. On the other hand, the application of HarmonyOS in the PC field will also be accelerated, creating a completely independent and controllable software and hardware ecosystem for Huawei.
Only in this way can Huawei truly grasp the initiative in product research and development and fundamentally get rid of the troubles of US sanctions. This innovative layout will surely inject new vitality and vitality into Huawei's future PC market and the entire information technology field.
Leading the technological change in the industry
In this process, Huawei will also become an important force leading the technological transformation of the industry.
On the one hand, Huawei's independent innovation will surely promote the overall improvement of the industry's technological level. On the other hand, its innovative practice in the field of PCs and tablets will also set a new development benchmark for the entire industry and guide the reshaping of the industrial pattern.
It is foreseeable that in the future, Huawei, with its independent and controllable technical strength, will set off a new wave of innovation in the PC market and bring consumers a better product and service experience. This will also force other manufacturers to increase investment in innovation, thereby promoting the progress of the entire industry.
Empower rural revitalization
It is worth mentioning that Huawei's innovation in the PC field will also inject new momentum into rural revitalization.
With the popularization of the HarmonyOS operating system in rural areas, various PC-based smart applications will surely benefit the majority of farmers and help rural industrial upgrading and digital transformation. At the same time, Huawei's independent and controllable technology will also provide strong support for agricultural production and supply chain management, and promote the development of modern agriculture.
Therefore, the future development of Huawei's PC business is not only related to its competitiveness, but also will contribute to the realization of the national strategic goal of rural revitalization.
In general, although this round of sanctions has brought severe challenges to Huawei's PC and tablet business, Huawei will actively respond to it, and finally break through the containment of the United States by accelerating independent innovation, mastering core technologies, and continuing to maintain a competitive advantage in the PC market and the entire information technology field. This will not only promote technological changes in the industry, but also inject new impetus into rural revitalization.