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2019

06/19

Global Times: China's Semiconductor Industry Should Be an "Inmortal Bird"

Ren Zhengfei, founder and CEO of Huawei, revealed in a dialogue with two American scholars on the 17th that "Huawei will reduce its output (revenue) by an estimated $30 billion in the next two years", but the current setback can not prevent Huawei from moving forward and will "revitalize" by 2021. He said Huawei was an "immortal bird".

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In our view, this is a sketch of Huawei's future development, and Huawei's situation may also epitomize the future growth of China's semiconductor industry.


It is a very important practical subject to assess the current difficulties realistically. It is impossible for any enterprise, or even an industry, to feel relieved to be so strongly suppressed by the world's superpowers. But we need to make a calm analysis of these difficulties and respond positively. In the face of difficulties, the Chinese people are neither calm nor heroic. The difficulties must be temporary. In fact, few Chinese really believe that Huawei and the whole semiconductor industry in China will be so easily destroyed.


Under the pressure of the United States, China's semiconductor industry does expose many shortcomings, but its resilience and vitality are obviously underestimated by the United States. If Huawei spent two years, 30 billion dollars, carrying the wave of attacks in Washington and thus becoming stronger, the tuition fees would not be too expensive, they would be worth it. We believe that Huawei, which has always been pragmatic, can do what it says.


China's semiconductor industry, including other high-tech industries, will be strong enough to avoid this encounter with the United States. Some Americans have fantasies about the United States, but they do not know enough about its sinister intentions and mean means. In terms of low-profile and honesty, Huawei is a typical example in enterprises all over the world. But has the United States let it go? Now almost everyone on Earth knows that Huawei has become the ultimate target of pressure in Washington because it has taken the lead in 5G.


Thirty years ago, the United States used various means to strangle the rising momentum of Japan's semiconductor industry. Today, it is targeting China again, rooted in the technological development of Japan and today's China, which has impacted Washington's sensitive, selfish and narrow mind. There is no justification for Washington's pressure.


What doesn't kill you will eventually make you stronger. Nietzsche, a German philosopher, has been frequently quoted on the Chinese Internet recently, which is regarded by netizens as a vivid portrait of Huawei as a private enterprise bravely resisting Washington's suppression, and also represents the overall optimism of Chinese people in fighting back the US trade war. The pressure exerted by the United States does cause us difficulties, but it also brings us a better understanding of China's current coordinates and future direction.


The painful lesson tells us time and again that self-strength is the absolute truth. Huawei and the semiconductor industry as a whole need to work hard to get out of the passive situation as soon as possible. All the shortcomings exposed by the semiconductor industry are the direction we need to make up for in the future. We are now facing a fierce blockade from Washington halfway up the mountain, but it is true that Washington will be willing to shake hands and make peace when we get rid of all difficulties and climb to the top.

External pressure has made Chinese society more united and Chinese people have a deeper understanding of the word "unity". It is not a slogan, but a combination of knowledge and action. Today's China needs not only the unity of people's hearts and minds, but also the unity of industrial mutual assistance. With the wisdom and diligence of the Chinese people, coupled with unity, will be indestructible and invincible.