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Chinese Huawei Takes on U.S. Telecom Market

Posted by timothy on from the thattawei dept.

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."

2 of 398 comments (clear)

  1. China crash will be fun... by otis+wildflower · · Score: 5, Insightful

    .. when they end up having to deindex the RMB in order to clean up their banking structure..

    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/as ia/03china.html

    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.

  2. Re:Shouldn't this be what the WTO covers? by Anonymous Coward · · Score: 5, Informative

    Just exactly what rules in the WTO are they breaking?

    I'm amazed someone would think such a statement needs backing up.

    Steel tariffs, tax subsidies, Gambling, Cotton. All kinds of stuff.