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Huawei raises investment in Chinese companies

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Huawei wants to build a supply chain inside China

Sanctions are one of the favorite tools of pressure from the United States to curb and rein in the unwanted. Last year, Huawei and all of its subsidiaries came under sanctions. But they had no effect and already in 2020 America launched another attack, which should lead to the destruction of Huawei. At least, officials in the US are hoping for such an outcome.

But Huawei continues to fight and sees its salvation in the domestic market. China has become not only a reliable and stable sales market, but here you can also create your own supply chain so as not to depend on suppliers outside the Middle Kingdom and again not become hostage to political showdowns.

Huawei is even willing to spend a fair amount of money to support promising Chinese startups that may become partners of the company in the future. So, in April last year, a subsidiary of Habo Investments was created, which is responsible for investments in other startups. During the year, she entered into 17 transactions, under which Huawei financed the development and formation of other companies.

The investments brought their first results So, thanks to the financial support of the Chinese company Vertilite, specializing in the creation of sensors, it was possible to organize the release of components that will now find their application in Huawei smartphones.

When choosing areas for investment, priority is given to those firms that will be able to arrange the supply of any components for Huawei products in the future. However, you shouldn’t think that the Chinese company is buying up Chinese startups. No, investments are metered, and she prefers to acquire no more than 10% of the shares of compatriot companies. In addition, Huawei itself is busy mastering a number of technologies and intends to independently put the release of a number of components on the stream.

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