Chinese electronics manufacturer Huawei faced a giant setback in 2019 when the US put the company on its ‘Entity List.’ This is a blacklist that bans the corporations to be seen as a threat to American national security and foreign policy. However, overcoming that barrier swiftly, Huawei became the biggest smartphone manufacturer in the world in Q2 2020.
Speaking about how the company recovered from the ban, Huawei founder Ren Zhengfei revealed that they made significant changes – moved all its US assets to Russia, increased Russian investment, and raised Russian scientists’ salaries – to compensate for the US ban. The ban cut off trade between US-based companies and the companies on the Entity List.
Huawei’s Cloud Tech services
Huawei employed one more method to cope with the ban – developing its cloud computing technology. According to a report published by Financial Times, the Chinese electronics giant is all set to create industry-grade cloud tech to “ensure its survival.”
Huawei offers computing power and storage to companies, including access to AI. The Cloud Computing business has helped the company stand back up on its feet.
Huawei can still access USA-made Cloud computing chips because semiconductors essential for the business are allowed to be exported. “Intel has been the supplier of the main (CPU) unit for Huawei servers as it secured a license last year that allows it to continue to sell to Huawei”, said an expert in the field who wished to remain unnamed.
Alibaba and Tencent rule the Chinese Cloud markets currently. However, Huawei has made an entrance and is expected to compete with them in the coming days. Beijing has provided Huawei Cloud Tech with public contracts from time to time, ensuring a smooth business in China.