Congradualtions to Huawei, ZTE, the Chinese Government and the liberal benevolent US GOv't staffed by folks who cannot spell 'IT' never mind 'LASER' and who wisely gave away the intelectual farm in my unfortunately chosen field of study and practice over the course of my adult life.
A conspiracy for which all the responsible idiots in DC can claim total innocence by laughing off questins about domestic educational responsibilities and workforce developemnt with a martini in-hand saying "well I don't understand all this tehcnical stuff.. who does?".
Please thank your local representatives everyday for looking after your ineterests over this last generation
re: Huawei Aims for Optical CrownI think the master plan must be to assemble cars and dominate the automotive industry (based on government funding to keep this alive) ohh but wait the big 3 three aren't market leaders... Honda, Hyndai, Toyota lead this market. If the economy isn't based on manufacturing (give me a break), or technology (since no one cares all the leaders are slowing moving over seas) what the hell is important!!!!
re: Huawei Aims for Optical CrownOne can only assume that ZTE & HuaweiGÇÖs price advantage (they make really cheap products) comes from extremely high volumes of commodity components and they have mastered the art of negotiation with component suppliers (the same suppliers the rest of the industry uses to compete with Huawei) (FYI IGÇÖm being sarcastic, for those that canGÇÖt read between the lines)GǪGǪ. OR more likely lack of regulation on dumping practices (illegal in North America) debt financed by the Chinese government to allow ZTE and Huawei to gain foot print outside of China.
ItGÇÖs nice to see all the governments look the other way when dumping (selling products at or below cost) tactics are used to gain market share.
Congratulations ZTE and Huawei, all you need to do now is reverse engineer Windows and Office and take out Microsoft.
Kudos to ZTE & Huawei, they are clearly executing well.
One thing that causes me a bit of worry about their growth, is the huge amount of vendor financing that seems to be available to them.
When a company with single-digit billions of revenue is provided with 10's of billions of vendor financing cash, does it not create something that looks a lot like the tech bubble of 2000-2001?
That is, not real growth based on sound business fundamentals, but money lent to people with questionable business cases or balance sheets (i.e. those that the banks won't give money to) to buy their product? Are we destined for a bunch of grey market ZTE and Huawei gear when some of these companies fail?
Or is this now a strategic advantage due to the current limited avaiability of credit and the Chinese government's willingness to back this debt?
Any observations the LR staff or readership has on this?
Well I think I know the Gov't Master Plan (but do they?):
Auto Industry: Feel guilty about winning a world war, Let MacArthur settle everyone down and as a political favour, proceed to pressure the industry to hand over the Auto Industry know-how to JPN. Then, forget the doemstic auto industry, they are big and rich and never did any political favours for us. Dupe the union into thinking they are much more important than the folks who design cars (they have more votes anyway). Who cares what wedges get driven between them via class perception politics.
Telecom/Semi: Feel Guilty about ????, Let Liberal Tehcnologists from MA and Si Valley and Bell Labs hand over the know how for routing and silicon technology for some nice consulting fees or Gov't kick backs, again, again and again slowly over the course of 10 years. As years pass, decide Broadband policy with a bunch of lawyers and B.A's at the helm. Meanwhile, make up rules about service provisioning and content decency that make no sense in a sustaining business model or in general.. extending into the future indefinetly.
The global economy became more important to the US Gov't than it's very own. World order Utopians redistributing the wealth while not policing the good policy in place already. We let it happen (although I was in diapers during Nixon, but knew I din't care for Bush Sr. foreign rhetoric and the silliness with Willy's administartion that lead to the transfer of military technology). Feeling unrepresented...
"hey have mastered the art of negotiation with component suppliers (the same suppliers the rest of the industry uses to compete with Huawei)"
Isn't this just a classic case of a high-tech product becoming a commodity? If providing optical systems is only about buying cheap and assembling cheap, then chinese vendors will prevail. If all the R&D of the western companies can't be converted into higher prices, it's worthless.
I agree that Huawei has taken, sorry "engineered", most of their technologies and US educated Asian employees with US government turning its blunt eye to the whole problem. I am a bit ashamed how much has been alowed by our government and how little it does even now to protect the US market.
We need a few techies in the Cabinet, not a bunch of lawyers regulating Telecom internally and letting other country's businesses prosper on our R&D initiatives. Sorry if it sounds political in pretty much technical talk board.
Yes newday!,
Congradualtions to Huawei, ZTE, the Chinese Government and the liberal benevolent US GOv't staffed by folks who cannot spell 'IT' never mind 'LASER' and who wisely gave away the intelectual farm in my unfortunately chosen field of study and practice over the course of my adult life.
A conspiracy for which all the responsible idiots in DC can claim total innocence by laughing off questins about domestic educational responsibilities and workforce developemnt with a martini in-hand saying "well I don't understand all this tehcnical stuff.. who does?".
Please thank your local representatives everyday for looking after your ineterests over this last generation