This sounds like a more plausible explanation for why Huawei succeeded.
Simply because of unlimited support and funding from the China central government, in order to get independent technology Research and Development.
And plus, the financing for foreign countries, is also super important. There was talk about some African nations, only interested in buying Chinese products, simply because the Chinese provided favorable financing terms. Terms which the western countries refused to do.
In this case, the western countries wanted to make as much money as possible from one deal. Whereas China played the long game, and chose to make less money per deal, but had to strike a lot more deals, to make their money. So, China made their money in volume.
It seems there are different goals at play here.
The countries in the west, have their national champions, and their own governments support them at a holistic and policy level. And each company tries to compete with each other to win a bigger slice of the pie.
Whereas in China, their goal, is simply for technology independence from the west. So, they are willing to throw as much money at the problem as possible, in order to achieve that goal.
This also harkens back to the atomic bomb analogy. That once the technology was proven to be scientifically possible, then it can be independently achieve by a foreign government, if they put enough time, money, and people at solving the problem.
For this reason, I wonder if near-zero interest rates and corporate bond purchasing will ever end in the US. If it continues, isn't it kind of like the government supporting these large US corporations in the similar way? Encouraging them to take any contract or spend on any investment that returns more than 0% in interest?
I'm not saying this would be "good" or "bad". I imagine it would be bad for smaller companies, but good for larger ones, maybe good for American competitiveness in world commerce (for a while) but could be bad in the long run because we'd be committing to a race-to-the-bottom price war with a competitor who has a lower bottom price than we do.
Simply because of unlimited support and funding from the China central government, in order to get independent technology Research and Development.
And plus, the financing for foreign countries, is also super important. There was talk about some African nations, only interested in buying Chinese products, simply because the Chinese provided favorable financing terms. Terms which the western countries refused to do.
In this case, the western countries wanted to make as much money as possible from one deal. Whereas China played the long game, and chose to make less money per deal, but had to strike a lot more deals, to make their money. So, China made their money in volume.
It seems there are different goals at play here.
The countries in the west, have their national champions, and their own governments support them at a holistic and policy level. And each company tries to compete with each other to win a bigger slice of the pie.
Whereas in China, their goal, is simply for technology independence from the west. So, they are willing to throw as much money at the problem as possible, in order to achieve that goal.
This also harkens back to the atomic bomb analogy. That once the technology was proven to be scientifically possible, then it can be independently achieve by a foreign government, if they put enough time, money, and people at solving the problem.
And here, it seems Huawei did just that.