US sanctions imposed on Huawei, intended to cripple the Chinese tech giant, appear to be losing their power. Despite massive restrictions on accessing US technology, Huawei has found a way to thrive in spite of them, pulling in a staggering $118 billion in revenue in 2024.
This figure, while representing a decline from previous highs, shows that the company has managed to adapt and survive in a US-forced challenging environment. While not matching prior highs, the $118 billion was still an impressive 22% increase over 2023 revenues.
Huawei’s success was mostly due to its investment in domestic chipmaking, supply chain adjustments, and strong consumer demand in China.
The company captured a 16% share of China’s smartphone market, surpassing Apple in domestic sales, thanks to smartphones with domestically produced chipsets. The company’s Mate 60 smartphone, powered by a China-made 7nm chip, while falling short of the 3nm Snapdragons and Apple chips, shows Huawei can still innovate without US tech.
Huawei’s smart car solutions unit also significantly contributed to revenue growth through partnerships with Chinese automakers, providing advanced technology for electric vehicles. Specifically, it focused on autonomous driving software, in-car operating systems, and advanced chips to power next-generation electric vehicles.
Huawei is boosting its AI technology by adding DeepSeek’s R1 language model to its cloud service. This helps them depend less on Western tech. Their chip, the Ascend 910C, performs at about 60% of Nvidia’s H100 GPU in certain tasks, showing Huawei is making progress in AI hardware. While it’s not yet as good as U.S. technology, it’s still enough to move forward.
The Chinese Market Is Rising
Huawei’s success story isn’t an isolated incident. A broader trend is emerging where Chinese companies are finding ways to work around US tech restrictions. They are achieving this through a combination of strategies, including:
- Developing indigenous technology: Faced with limited access to foreign components, Chinese companies are doubling down on research and development, creating their own alternatives. Turns out self-reliance can create a decent domestic tech ecosystem. Who would have thought?
- Strategic partnerships: Chinese companies are forging alliances with non-US suppliers, diversifying their supply chains and reducing dependence on American technology.
- Focusing on the domestic market: With a massive domestic market, Chinese companies can often sustain growth even without significant international expansion. Huawei, for example, has leaned heavily on its domestic sales to weather the storm.
- State support: The Chinese government’s backing plays a crucial role, providing financial and policy support to strategic industries, enabling them to overcome obstacles posed by sanctions.
The case of DeepSeek, a Chinese AI research company, is the best example of this. While details remain limited, DeepSeek’s reported advancements in large language models, seemingly achieved without reliance on US-developed GPUs, suggest a growing capability within China to innovate independently.
Of course, we have heard rumors that DeepSeek actually had access to thousands of Nvidia (US) chips that it should not have had access to. The rumors say they couldn’t come out and admit they somehow had the hardware.
However, even if that’s the case, the fact remains that they still found a way to get the job done—whether by optimization or by bypassing sanctions and gaining access to prohibited tech. Either way, Chinese companies are working around sanctions.
It appears sanctions have not led to the downfall of Chinese tech giants. While sanctions may have slowed their growth in certain areas, they have also acted as a catalyst for innovation and self-sufficiency.
The long-term impact of these restrictions remains to be seen, but it’s clear that Chinese companies are not only surviving but finding ways to thrive in a world where access to US technology is no longer guaranteed.
Zimbabwean Sanctions
The resilience of Chinese companies raises questions about the power of sanctions as a tool of economic warfare and highlights the growing technological prowess of China. It also shows that the Zimbabwean government has no feet to stand on.
For years, we have heard that our economic woes were because of sanctions. Let’s say that sanctions are actually to blame—then what? Some countries are facing even stiffer sanctions but are thriving. So, it’s not a question of sanctions but rather of leadership and setting the economy up for success in spite of sanctions.
So, whether or not sanctions are to blame for Zimbabwe’s woes, it is still a Zimbabwean government failure.
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7 responses
Uchasungwa wourawa neFailed zanu pf govt vobva vakuForcer kuti zvinhu zviri kunaka iwo Ma company achivhara. Vobva vati its unpat
Govenment failure that manifests as visionary leadership deserving of , ” extra time “.
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Africans we can’t do anything we always blame the west for our problems China Russia are heavily sanctioned by the West but their economies are good
China ine vanhu vanofunga I think vNhu vachena vano funga kudarika vatema by far in my own opinion give a black man a task and a white man you will know the outcome they say black people were created first but why black people are so behind in terms of everything what made white people to be superior than us what is the science behind that is our IQ low to the extent yekuti tino relaya ne varungu on everything Trump akamisa Aid mu Africa vanhu vakungo zhamba black people wake up
If Chinese companies can navigate sanctions and still succeed, why has Zimbabwe struggled for so long? build now gg
It’s fascinating to see how innovation can thrive under pressure, much like an iq test challenges our problem-solving skills. If companies can find creative solutions despite restrictions, it raises questions about the effectiveness of sanctions as a strategy.