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Faced with US sanctions on 5G business and chips, emerging markets have become a breakthrough for Huawei, China's leading telecommunications equipment manufacturer. Huawei is currently trying to break through in Africa, and several African countries, including South Africa, have adopted its 5G technology.
Regarding the recent US pursuit of Huawei in the chip field, the WeChat column "Xia Ke Dao" of the Chinese official media People's Daily said that the US is using its technological advantage and influence to suppress Huawei, which shows that core technology cannot be bought. Xiake Dao also quoted Ni Guangnan, an academician of the Chinese Academy of Engineering, as saying that if China wants to develop key core chip technologies, "it must be prepared to sit on the bench for 10 years."
In order to seek a breakthrough in business, Huawei has turned to the African market, and some countries are becoming more dependent on its products. The Nikkei reported that in July 2020, Rain, a large South African telecommunications company, adopted Huawei equipment and took the lead in providing 5G dedicated communication network services in Africa; Kenya's largest telecommunications operator Safaricom also mentioned that it would use Huawei products in 5G infrastructure when attending an online event hosted by Huawei.
Why can Huawei gain a foothold in Africa despite the global sanctions imposed by the United States? World Wide Worx, an African IT market research company, pointed out that Huawei has a strong foundation in Africa, which has a population of 1.3 billion. 70% of Africa's 4G base stations are manufactured by Huawei. If considering upgrading to 5G in the future, it is unrealistic to get rid of Huawei. Compared with European countries that can switch to Nokia and Ericsson, African countries need to consider the cost issue more.
On the other hand, other Chinese companies that have been sanctioned by the United States like Huawei are also gaining influence in Africa. In January 2020, ZTE joined hands with large telecommunications company MTN to launch a 5G activation experiment in Uganda; Hikvision, which has facial recognition technology, has its products widely used in South Africa, Senegal, Kenya and other countries.
The report said that the Chinese government's large-scale investment and loans to African countries over the years have also effectively supported the development of Chinese companies in Africa. Statistics from the United Nations Conference on Trade and Development (UNCTAD) show that China's direct investment balance in Africa reached as much as US$46 billion in 2018. For example, the large government data center completed earlier in Cameroon obtained a loan from the Export-Import Bank of China, and the equipment was provided by Huawei.
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