▶ Huawei's resilience against U.S. sanctions stems from a combination of substantial Chinese government support, including financial bailouts and investment in a domestic semiconductor ecosystem, and the company's own adaptive strategies like stockpiling components and diversifying into new sectors like cloud computing and AI.
▶ The company has effectively circumvented U.S. restrictions by exploiting loopholes and utilizing sophisticated, multi-layered networks of domestic and foreign partners to acquire essential technologies, such as advanced chips from third-party intermediaries.
▶ Despite sanctions, Huawei has achieved significant technological progress, developing its own advanced chips and becoming a major competitor in the global market. This case highlights the limitations of economic coercion and serves as a warning for middle-power economies to diversify their own supply chains and invest in indigenous innovation to avoid being caught in the escalating U.S.-China tech rivalry.
