How China's High-Tech Industry Breaks through under Sino-US Trade Friction: The Case of Huawei

Abstract

The various measures of the United States under the Sino-US trade friction are a precise blow to China's high-tech industry, so it is vitally important to study how to break through of the high-tech industry under the Sino-US trade friction. This paper takes Huawei Technologies Co., Ltd (hereinafter referred to as Huawei) as an example. It proposes countermeasures at the enterprise level by studying Huawei's countermeasures. The results of the study conclude that the most important thing is to increase R&D (research and development) expenses and introduce talents to enhance the enterprise's R&D capability to avoid being constrained by others, in addition to which when the R&D capability has apparent advantages in the global scope, there will be no lack of sales channels and partners. Moreover, enterprises also need to have a forward-looking, prepare for the worst, and adequate stock to ensure that the short-term can continue operating the industry. Furthermore, suppose Chinese companies cannot work with U.S. high-tech companies or sell in the U.S. because of sanctions. In that case, they should actively seek other partners and expand sales in their significant markets to mitigate the impact of reduced U.S. consumption.