Business

Por Rafael Bitencourt — Shenzhen


Four years have passed since the U.S. government imposed sanctions on Chinese tech giants, and its effects are still felt outside the United States. In Brazil, the repercussions have led Huawei to delay the return of its smartphone sales in the country, according to Deve Huang, Huawei’s director of communications for Latin America.

Mr. Huang explained that the sanctions on Chinese manufacturers have had two severe implications. First, they banned the use of high-tech chips produced by U.S. companies in Chinese devices. This forced Huawei to reorganize its supply chain with Asian partners to meet the high demand for advanced electronic components.

The second impact, more challenging to navigate in the Brazilian market, involves the prohibition of using digital platforms maintained by U.S. tech companies, which are widely used outside China. Huawei executives argue that their smartphones surpass many high-end products in aspects like camera quality compared to Apple’s iPhone and Samsung’s foldable screen devices.

At Huawei’s innovation center in Shenzhen, Mr. Huang noted that the company’s devices can no longer be sold with Google’s Android operating system. Consequently, consumers buying Huawei phones would not have access to Google’s email and geolocation services.

“When you have the device ready, you need the software to run on it,” Mr. Huang said, acknowledging the high demand for services like Gmail and Google Maps. The Android system is present on almost all smartphones except Apple, which uses its own iOS. Competitors like Samsung and LG sell phones and tablets with Google’s system.

Over the past decade, Huawei has tried to establish its smartphones in the Brazilian market, facing tough competition from manufacturers offering more affordable devices. Brazil’s complex and costly tax system didn’t help. In 2019, the embargo initiated by then-U.S. President Donald Trump further complicated matters.

According to Huawei’s Latin American business division, the latest series of devices, Pura 70, is available in five countries in the region: Mexico, Colombia, Costa Rica, Peru, and Chile.

Mr. Huang explained that developing a new digital ecosystem takes time. In response to the U.S. embargo, Huawei launched the HarmonyOS operating system, which had been under internal development. Mr. Huang stated that the platform now supports around 150,000 applications.

Another consequence of the U.S.’s sanctions is the ban on selling network equipment. Huawei holds a prominent position in manufacturing 5G cellular equipment, competing with Finland’s Nokia and Sweden’s Ericsson in this market.

Despite Western restrictions, Huawei smartphones are widely used across China and neighboring countries. In Shenzhen, the company operates a concept store showcasing the latest connectivity innovations. The store features Chinese-made cars with Huawei’s embedded technology and a line of smartphones with powerful cameras and foldable screens.

Shenzhen is considered Asia’s largest tech innovation hub. This week, Mr. Huang guided Latin American press representatives through the exhibition center for new telecommunications network equipment, set in a scenario suggesting greater integration of technology with nature.

The exclusive exhibition stand displays user-interactive devices with 3D imaging and virtual environments developed by the Chinese tech giant.

In Shenzhen, Huawei executives are eager to demonstrate how innovation is being applied. For example, Shenzhen Baoan International Airport uses Huawei’s artificial intelligence system for smart check-ins.

The reporter’s travel costs were covered by Huawei.

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