A glance at the financial scorecard of Shenzhen’s publicly listed companies in the most recent quarter shows an impressive performance: Across 393 companies, listed on six stock exchanges at home and abroad, revenues rose by 13.05%, profits by a whopping 33.08%, YoY.
Markets were buoyant today as speculation rose that a US-China trade deal was imminent
No deal was done by the time everyone went to bed
in Washington, but the US president had made some encouraging
suggestions earlier in the day that they were close.
That followed a New York Times report
that the US government plans to soon issue licenses allowing some American
companies to supply “nonsensitive goods” to Huawei Technologies. In a meeting
last week, President Trump gave the green light to begin approving the
licenses, which will allow a select few American companies to bypass a ban
placed on Huawei this year.
Huawei Technologies is looking far and wide, high and low, for talent. As we have written recently about its Dongguan campus, which aims to attract PhDs from all over the world, the company is determined to become reliant on resources within the borders of its home country. Its latest step in this quest has led it to Jiangmen, the GBA municipality on the western side of the Bay.
The Jiangmen Vocational College signed an agreement with Huawei yesterday to “explore the integration of production and education”. What this means in plain terms is that they will jointly build the Huawei Institute of Information and Network Technology, otherwise known as the Huawei ICT Academy.
It’s only a RMB7 million investment, but it was enough to get the district mayor out for th signing ceremony, according to Nanfang Daily.
There is a lot of rhetoric in the press statement, so it’s hard to know exactly what is different about this collaborative agreement than a standard classroom or building sponsored by a tech giant. It seems that Huawei will basically have first access to any budding AI talent that emerges from the district. It’s all in the name of the GBA, needless to say.
We thought there was something strange about Huawei’s recent decision to set up its major hub for Kunpeng, the new “chip ecosystem” it is developing, in Shanghai.
Why there? Huawei is a son of Shenzhen. We can understand why it would build a new campus in Dongguan’s Songshan Lake, as that is literally just up the road from its headquarters in Shenzhen’s Longgang district. But Shanghai is on the eastern seaboard, part of the Yangtze River Delta and is Shenzhen’s biggest competitor, er, comrade.
Passengers taking the high-speed railway between Guangzhou and Hong Kong will soon be in for a treat. Before the next Spring Festival (known to foreigners as Chinese New Year), the train journey will be experienced almost entirely on a 5G network.
Huawei What? Huawei Technologies has now secured more than 50 commercial contracts worldwide for fifth-generation mobile networks, and almost two-thirds of the world’s 5G base stations are built by the company, according to a senior executive, quoted by Yicai Global. The firm also expects to deploy 65 million 5G base stations globally by 2025, serving 2.8 billion users. Read more.
London or Bust? Hong Kong’s richest may be fully behind their embattled CE since being called across the border for a fireside chat with HKMAO Director Zhang Xiaoming, but they are hedging their bets in record numbers by applying for “golden visas” to the UK. Read more.
Gree-Xiaomi Bet Back On? Doug Young has a good column on Caixin Global about the two billionaires renewing their billion-yuan bet, while he wonders out loud about both of their companies. Read more.
Radio GBA: China Daily reports that the Greater Bay Area has its own radio station. Sadly, China Media Group doesn’t think foreigners are the target audience, and so it is in Cantonese, Hakka and Teochew. Read more.
When you move against an opponent, they should always be significantly weaker than you are. This is the basis of Sun Tzu’s teachings. The US government might have heeded such millennia-old advice when it decided to put Huawei Technologies on its Entity List back in May. Now, the Shenzhen-based technology giant has given a demonstration of how the Art of War works in business.
American OEM giant Flex International has shut down production at one of its Zhuhai plants serving Huawei Electronics and begun laying off workers, according to local media. It has also recently closed its factory in Hunan’s Changsha as Huawei cut down its smartphone production orders.
Founded in California 1969, Flex is the world’s second largest OEM enterprise after Taiwan’s Foxconn. It entered the Zhuhai market in 1996 and its industrial park there is its largest in the world. At its peak, the park employed up to 18,000 workers. It has shut its South plant, keeping its North plant going.
As analysts worry about the challenges facing Huawei to launch its flagship smartphones in Europe, it turns out that the firm’s Chinese sales – surprise! – are booming. According to new data from research firm Canalys, Huawei’s smartphone shipments in China surged to 37.3 million in the second quarter, up 31% year-on-year. That pushed its market share up to 33%, from 25% in the same period last year.
This being a zero-sum game, Huawei’s competitors saw their smartphone shipments in China fall 6% in the second quarter. Applewas a big decliner, down 14%,but it was the other Chinese brands that felt the crunch hardest: Oppo, Vivo and Xiaomi tumbledby 18%, 19% and 20%, respectively.
There is no guess as to why this happened. Huawei, brilliantly, played the nationalism card. Buying their phones has become a patriotic act of duty in the context of the US-China trade war. But they executed well, also. “Huawei’s core strategy remains investing in aggressive offline expansion, and luring consumers from rival brands, while unleashing a wave of marketing spend to support new channels and technologies,” said Canalys analyst Mo Jia.