Hey Joe, Call Me
Huawei founder Ren Zhengfei is hoping for a call from Joe Biden. While Vegas adds that call to the line on $15 minimum wages & $2000 checks, we imagine the call going something like this:
“Mr. Biden, you supply the goods, we supply the production capacity, you expand supply, too. Heck, we’ll even keep your ‘counterintelligence operatives’ on site.”
“C’mon, man – you think just cuz the rooster’s a different color it’s gonna lay an egg?”
Huawei represents everything America has no easy answers for about China, hence the former’s fallback on standby solutions – sanctions being the first and least aggressive step. Bad for Huawei, but nature abhors a vacuum.
“The U.S. may be unintentionally starting a game of whack-a-mole,” says Jimmie Jeremejev. “There are already Chinese companies stepping in to fill the gap, and China’s determination to become more reliant in terms of the entire telecom supply chain is only hardening. There will be plenty of room for non-U.S. players to step into help forge that chain, and a lot of investable value created therein.”