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China is not a single entity. Huawei is not going to choose low quality high price local startup over suppliers with good reputation if they have that choice.
by analyst74 3y ago
China is not a single entity. Huawei is not going to choose low quality high price local startup over suppliers with good reputation if they have that choice.
Sanction means those uncompetitive local startups don't have to compete with established players, giving them chance to catch up.
- maerF0x0 3y ago> China is not a single entity. However it acts like one much more so than many other countries, and especially under Xi jinping. See also https://archive.is/ZoShw https://archive.is/ZoShw (NY Times Who Owns Huawei? The Company Tried to Explain. It Got Complicated. 2019)
- DiogenesKynikos 3y agoAs that article describes, Huawei is effectively employee-owned, though the legal arrangement is not straightforward (because of China's laws on stock ownership at the time Huawei was founded).
- maerF0x0 3y agoThe article says that it's claimed that Huawei is... but that it's misleading (virtual shares) and that whenever ask the question dodgy answers are given.
- DiogenesKynikos 3y agoThe answers make perfect sense in the context of Chinese law. This is how Huawei was set up decades ago. They would have had no reason to hide or obfuscate their ownership back then. They used a legal device - the union holds shares on behalf of the employees - to get around restrictions on the number of shareholders in a private company.
- hangonhn 3y ago> China is not a single entity. I wish more people knew or understood this. The central government, as much as it wants, doesn't have great control on the local level. It's even enshrined in a Chinese idiom: 天高皇帝遠 or "Heaven is high and the emperor is far away". Furthermore, China's model is actually quite decentralized. There's a lot of freedom at the provincial and local level -- it pretty much has to but the CCP has been able to leverage it to experiment with different ideas at different provinces.
- hackernewds 3y agoJust wanted to add a tangent on how beautifully expressive and complex the Chinese language and script is.