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Chinese Huawei Takes on U.S. Telecom Market
ChipGuy writes "With funds on loan from the Chinese government, Chinese equipment giant, Huawei is undercutting big rivals like Cisco and Nortel, and is using money to buy its way into the U.S. market. Overseas in Europe and Asia it already has become a major force. There are parallels with auto industry and home appliances. It took a little while before prices became a determining factor and shifted growth away from North American vendors. Telecom will go through the same curve. Huawei is curently selling EVDO phones for about $130 and WCDMA phones about $250 which is about 30% than everyone else on the market. Huawei's agenda is pretty clear - get business and sales at any cost. And that means bad news for already struggling telecom industry."
30% less?
30% of?
30% more?
30% crappier?
Come on!
--sig fault--
Too bad the US is:
a) violating the WTO rules currently.
b) too addicted to Chinese money to fund Bush's spending splurge/tax cutting spree to really bring any meaningful grievances against China....
Am I the only one who sees how insane Bush's spending policies are? Maybe it's not the wisest idea to become dependant on a country whose primary objective seems to be to destroy us...but then again, this country did elect Bush...twice....
Monstar L
As some have noticed... There was a lack of one word "LOWER" in the post. Here: "Huawei is curently selling EVDO phones for about $130 and WCDMA phones about $250 which is about 30% LOWER than everyone else on the market.
Chinese Hawaii takes on U.S. Telecom Market?
.. when they end up having to deindex the RMB in order to clean up their banking structure..
s ia/03china.html
http://www.asianresearch.org/articles/2263.html
Remember how the last Asian Crisis (tm) came about from lots of nonperforming loans of cheap money for phallic skyscrapers (among other things). Guess where the biggest concrete and steel dicks are these days? Shanghai, Chicom Hong Kong, and the coveted Taiwan ROC... I'm thinking Soros is chomping at the bit for the opportuninty to fuck China _and_ the US over in a spectacular fashion once the dike starts to crack...
Given that and recent reporting of labor shortages in Guangdong..
http://www.nytimes.com/2005/04/03/international/a
The next few years should be interesting indeed.
At any rate, there's enough dollars in China to support an interesting shopping spree. I'm thinking they'll buy GM after they declare bankrupcy, and use those brands plus Chinese labor (and, hopefully, American labor after the UAW is destroyed by bankrupcy renegotiation) to enter the US auto market.
Take a look at the rapid growth of Koren company Samsung in the global handset market. They came out of nowhere and now are in the top 3 of handset manufacturers along with established giants Nokia and Motorola.
Hyundai is also doing a great job undercutting other auto compaines with surprisingly decent cars at excellent prices. 5 years ago I would never have considered owning a Hyundai, now I think they're just as good or better than some manufacturers.
If you don't think China already has a major stronghold on the US, you haven't been to a Wal-Mart lately. It's a global market, like it or not.
FYI, Nortel, which is mentioned in the summary, is a Canadian company, not a US company. Canada != U.S.
I just can not understand why the American government is allowed to fund Boeing, General Dynamics, several oil companies, and Halliburton. Is this not unfair to American and other countries corporations?
"Who are in control, they are not in control of anything - they don't even control themselves!" - Glen Beck
It is irrelevent if you think Bush spends less than would Kerry if Kerry would have a balanced budget.
The current deficits are >5% of GDP. This is insane. Compound that with the fact that no one saves any money in the US and you have a recipie for disaster.
I can understand your frustation, it's not hard. But come on, can you really be mad at the Chinese ("unfair") competition? They're essentially just doing what you taught them to do. Extreme capitalism backfiring?
The best of luck to you, though. I have no wish to see the US come crashing down.
The world is a interconnected place. More so all the time. We don't really have choices as to who we will work with and who we won't work with. This is more true the larger/richer/more powerful and influential the country is.
i think this is a good thing. there are too many weird ideas floating around among different world populations. i hope having to deal with them will spread the idea of ethnorelativism around some.
also, regardless of your opinion of the government, there are still 1.3 billion people who shouldn't be excluded from the global dialogue. if you want to change the government, then find ways to increase financial stability, social mobility and general education.
"social entrepreneurship" is a good place to start -- C.K. Prahalad has some good articles and books on it from a macro level. There are also many sources for learning how to do it on a microlevel. northsouthdev.org is one micro-level institution in nigeria doing social entrepreneurship. it was started by a Brit with 50,000 dollars. It has helped something like 1000 nigerians contribute to the economy. Micro Financing Institutes like his help local entrepreneurs who don't have the collateral to go to a normal bank get loans to start businesses. He has had a 0% default rate on the loans and has made a lot of money helping people.
With financial stability, social mobility and quality education, change in the government can happen. If these "democratic norms" don't exist, any government that was more free would have a serious likelihood of collapse.
I spent seven years in China. It is a wonderful place. I don't approve of everything the Chinese government does, but I do think that they are managing the economy well. I think that China will become an increasingly free country over the next 45 years.
It is important to understand that different peoples want different types of lives. The Chinese don't dream of an American life. They would not want to obsess over politics as much. In fact, the interest in politics would be so low if there was a democractic government put in place now, it would collapse or be twice as corrupt for that lack of interest alone. That's one of the reasons why Russia's government has regressed. That's why a lot of new democracies regress. Without the democratic norms already being in place, democracy fails one way or another.
What comes first, finding a teacher or becoming a student?
Not just Cisco. I formerly worked for a certain very large US telecom equipment manufacturer, and Huawei was selling a unit that was bug-identical to one of ours. The story, as related to me, was that said large company attempted to sue in China (they weren't selling into the US at the time). Said lawsuit came to a screeching halt when it became apparent that the Chinese government was the primary investor and the eventual result of the lawsuit was therefore completely predictable.
I am surprised to see that Cisco settled with them in US court. I expect the company in question, which has phalanxes of lawyers on salary, won't roll over so easily when it comes to defending the domestic market.