Huawei's domestic suppliers: Business is proceeding normally

       Huawei's domestic suppliers are operating normally.

　　Founded 18 years ago, Xunfang Technology is an information technology service company in Shenzhen that focuses on the ICT industry. Dai Yi, chairman of the company, said that Xunfang Technology's business is mainly concentrated in China, and it cooperates with Huawei across the entire industry chain, mainly providing it with customized equipment development, IT operation and maintenance, software debugging and other services. Its business with Huawei accounts for about 60%.

　　Dai Yi admitted that the company's business has not been affected by the Huawei incident. "Technically, Huawei's mobile phone business and servers equipped with Intel chips will be affected to some extent, but its server chips based on ARM architecture can be self-supplied. We were a little worried at the beginning, but now we are not worried anymore, and our business is currently operating normally."

　　He added that if there must be an impact, it is a positive one. "Because Huawei's brand influence is greater, this is good for us."

　　Ruicai Electronics is a Shenzhen-based system solution provider focusing on domestic product terminals, cloud and mobile clients. It is a downstream value-added service provider for Huawei, mainly providing it with a variety of customized services such as industrial control applications and Internet of Vehicles. Its business related to Huawei accounts for more than 70%.

　　Jiang Xiangyang, the company's general manager, explained that after the Huawei incident, the company had more communication with Huawei because it needed to explain to customers whether its business would be affected. However, the company is still operating as usual, and the impact is positive. "Compared to the beginning of the year, I now expect the company's performance to grow even more this year."

　　Jiang Xiangyang told reporters that the impact was positive because this incident gave Huawei a big advertisement, showing Huawei's competitiveness to the world, and more domestic companies have begun to use Huawei's products. "Some central enterprises have turned to Huawei for political reasons, and many companies are in a risk-averse situation, fearing that the United States will do something weird again, so they simply turned their cooperation with American companies to Huawei and other companies."

　　Although the business was not affected, in order to avoid risks from the United States, Jiang Xiangyang's company also made some changes to its products and began to "de-Americanize" hardware such as 4G modules, replacing them with domestic products or products from other countries outside the United States. "This is a last resort, and it is also what Huawei and its upstream and downstream industry chains are doing. We have now completed the 'de-Americanization' of some of our products."

　　He said that the process of "de-Americanization" is not difficult for the company, because its products do not involve Intel chips and other products. Some companies may have a harder time and take longer. "5G is completely independent and controllable, so it is not difficult to 'de-Americanize'."

　　"I expect greater performance growth next year because it takes time to roll out 5G applications and it also takes time to change our product design," said Jiang Xiangyang.

　　Li Xiangyu, director of industry marketing for Huawei China, also told reporters: "For us and upstream and downstream companies, now is a very good time to develop 5G. The most important thing is to do our own thing well."

　　As for Huawei's partners in other regions outside of China and the United States, Li Xiangyu said that they all have their own considerations, and many companies are still closely connected with Huawei. Taking the 5G application of Internet of Vehicles as an example, Audi, BMW, Mercedes-Benz and other car companies are strengthening their cooperation with Huawei. The two major operators in the UK use Huawei's equipment and are also "racing against time" with the government to put 5G into use as soon as possible.

　　He also said that some recent events are "a blessing in disguise" from another perspective, which makes us clearly aware of the gap with the United States. Now the country is conducting a new round of evaluation of some subjects in colleges and universities to squeeze out the "water" and false elements and do scientific research in a down-to-earth manner in order to strengthen my country's scientific and technological strength.

　　"This is a good thing. Just like the Wi-Fi Alliance, SDA and other organizations that revoked and then restored Huawei's membership, the revocation was their immature temporary response. 30%-50% of the patents of these alliances were contributed by Huawei. After revoking Huawei's membership, it was difficult for them to carry out their work, and they will have to pay Huawei's huge patent licensing fees in the future. They couldn't afford it, so they quietly added Huawei to the alliance. This incident tells us that the game cannot be played by verbal battles, but ultimately depends on strength, which is what we are doing." said Li Xiangyu.