The June 15 issue of The Economist it had the following title and subtitle:
America’s attempt to kill Huawei backfires
The company is growing stronger—and less risky
But if Nietzsche’s translation was not timely, the story itself contains some important information:
The American invasion continues. In May, for example, regulators revoked a special permit that allowed Intel and Qualcomm, two American technology groups, to sell Huawei chips for laptops. However, Huawei did not just survive; it is flourishing again. In the first quarter of this year, total profit increased 564% year-on-year to 19.7bn yuan ($2.7bn). It also entered the handset business. Its sales of telecommunications equipment are also on the rise. And it has achieved this in large part by replacing foreign technology in its assets with domestic components and systems, making it less vulnerable to American hostility in the future. Having failed to kill Huawei, Uncle Sam’s attack made it stronger.
External ones and has a very good episode of trade relations with China:
A China increasingly cut off from Western markets has little to lose in potential confrontation with the West—and, therefore, less incentive to downsize. As long as China remains heavily tied to the United States and Europe for trade in high-value goods that cannot be easily replaced, the West will be more effective in preventing the country from taking countermeasures. China and the United States are strategic rivals, not enemies; however, when it comes to US-Chinese trade relations, there is wisdom in the old saying “Keep your friends close and your enemies close.”
Another benefit of globalization is that it makes countries more interdependent. If your well-being depends on dealing with countries around the world, you may be less inclined to engage in hostile behavior that puts those supply chains at risk. Once you are removed from the rest of the world, there is no incentive to avoid reckless behavior, as we see in places like North Korea.
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