When US President Donald Trump recently announced sanctions on China’s telecom giant Huawei, many believed that the decision would hurt both the company as well as the Chinese economy. However, the Chinese media has reported that the decision, in turn, is benefiting local Chinese firms as Huawei has started placing orders for technology and manufacturing locally.
Global Times, in this regard, reported that Chinese tech giant Huawei was transferring its manufacturing orders from Flex, a US firm, to other suppliers including Foxconn and Wingtec; both of which are based in mainland-China and Taiwan.
According to the report “Taiwan-based Foxconn received certain orders from Huawei after the tech giant ditched Flex”. Moreover, Foxconn also confirmed to the Global Times that production at its two manufacturing bases in Shenzhen, South China’s Guangdong Province, rose 12 percent year-on-year in the second quarter, thanks to increased orders from Huawei.
Additionally, Deng Anming, planning department director of Wingtec, which is a Shanghai-based manufacturer of electric products, also confirmed to the Global Times that the company saw an “evident” surge in orders from Huawei recently because of changes in the latter’s supply chain.
“Now there are many original equipment manufacturers in the mainland that have stable production capacity as well as research and development abilities. They can absorb the orders diverted from Flex and Huawei’s supply chain won’t be greatly influenced as a result,” Deng said.
Since its US ban, it is being reported that Huawei is now changing its thinking about choosing business partners and is increasingly willing to cooperate with smaller companies with strong production abilities, which ultimately helps the local economy.
In its efforts to bounce back after the US ban, was had limited the use of Android in Huawei phones, Huawei has launched its own operating system called Harmony OS. This suggests that the company, rather than going down from the US decision, is finding ways to bounce back and reduce its reliance on US software and technology.
