China relies on the United States for its most important technologies such as semiconductors, operating systems, and chips, etc., despite its autonomy in areas related to consumption and social networking.

Besides the trade war, the United States and China are also facing a technological "Cold War". In May, the U.S. put Huawei Technologies blacklisted on technology transactions.

Immediately the empire of the world's second largest smartphone maker wobbled. That development clearly shows China's weakness. It is almost entirely dependent on high technology from the US.
According to Bloomberg, China is most dependent on US technology in the semiconductor industry, with products such as computer chips, phones and switching chips. These are all indispensable components in smart devices, and Chinese brands almost have no reasonable alternatives.

Semiconductor completely dependent
Among computer chip products, Intel or NVIDIA are the largest chip suppliers for both personal computers and servers, workstations. These are all American companies. After these two companies, the third largest supplier is still an American company: AMD.
Among computer chip products, Intel or NVIDIA are the largest chip suppliers for both personal computers and servers, workstations.
Most of the chip factories of these companies are located in Taiwan. Intel has a factory in China but only makes memory chips.

In 2019, Huawei announced server chips based on ARM designs. Although the company is headquartered in the United Kingdom, ARM also has a US branch.
ARM says it also has to comply with a US government ban. Without ARM's technology, Huawei could hardly produce its own chips.

In the smartphone industry, Huawei is less dependent on American firms. The company can produce chips and modems to supply 68% of its products. However, other Chinese manufacturers still depend on components from the US, especially Qualcomm.
Switching chips are also the area where a large US company dominates. Broadcom - based in San Jose, California - accounts for 80% of the market share of Ethernet switch chips.

The switching chip regulates the flow of information in network devices.
The switching chip regulates the flow of information in network devices. Understandably when Huawei - the world's leading network component supplier - is also a major customer of Broadcom.
Even when Huawei uses a self-developed switching chip, it still needs technology from the US, specifically design software. Synopsys and Cadence Design Systems, the two leading companies that provide design software, are US companies, and have stopped working with Huawei.

Haven't replaced the operating system from the US
Microsoft's Windows is still the most popular computer operating system in the world, and most computers sold in China use Windows. Microsoft's operating system is also used on computers at Chinese government agencies.
Apart from Windows, Microsoft's Office suite is also very popular in this country.

Haven't replaced the operating system from the US
So far, Microsoft has not made a formal decision on whether to continue working with Huawei and other Chinese companies. Lenovo - the largest computer manufacturer in the world - is also Microsoft's biggest customer.

Similar to Windows on computers, Android is the most popular operating system on smartphones in China. The country's largest smartphone makers, including Huawei, use Android platforms.
However, the Android version in China market is also different when it does not include basic services of Google.

For users in other markets, Google services are important. When Google decided to stop Huawei's Android license, it was revealed that the company was speeding up the development of its own operating system called HongMeng OS. Huawei can convince other brands to use its operating system, but there's no guarantee that HongMeng OS can replace Android convincingly.

Shopping, domestic social networks dominate
In the realm of life, Chinese technologies and platforms have knocked out foreign rivals. Amazon may be a giant with the world's top company value, but in China it will close its online marketplace, its very important product, in July.
In China, Alibaba and dominate the market with more than 70% market share. Amazon has never exceeded 1% of the online shopping market share, according to iReseach.
Social networking is also an area where foreign companies do not have a match with domestic products. Facebook and Twitter are blocked, almost inactive in China. Users in this country mainly use WeChat, a super app with many features such as messaging, payment, and reservation from Tencent.

QQ - Tencent's other messaging service - is also popular with many young people with 823 million monthly users. Weibo - a social network that behaves a little like Twitter - has 203 million daily users, much more than Twitter.

In China, there is almost no door for foreign search engines.
In the field of search, Baidu is the most prominent name in China. Following Baidu are Qihoo 360 and Sogou. Bing is the only foreign name in the top 6 search engines, but the number of users is much less than Baidu.

Cloud computing is also an area in which China is quite autonomous. Amazon, Microsoft and Google are the largest cloud server and server provider in the world but in China they are not even in the top 6. Alibaba and Tencent are the leading cloud computing companies in the country. this.
Not stopping in China, these companies have the ambition to expand operations to other countries in the Asia-Pacific region. According to data from Synergy Research Group, Chinese companies now account for 40% of the regional cloud market share.

Post a Comment