Core Viewpoint - The article discusses the escalating technological competition between the U.S. and China, particularly focusing on Huawei's challenges and strategic responses to U.S. sanctions and restrictions on its operations, especially regarding software and hardware supply chains [1][2][3]. Group 1: U.S.-China Technological Competition - The U.S. has adopted a "America First" approach, leading to a series of sanctions against Chinese companies like Huawei and ZTE, marking a significant escalation in tech competition [1][2]. - Huawei has been preparing for potential sanctions for nearly a decade, initially underestimating the severity of U.S. actions, but has since recognized the need for a robust response [2][3]. Group 2: Huawei's Strategic Response - In response to the looming threat of sanctions, Huawei's leadership convened to discuss the development of an independent operating system, recognizing the risks of dependency on Android [2][3]. - The company assessed that while it could rely on older versions of Android for a limited time, the long-term viability of its overseas smartphone business was at risk without a new operating system [2][3]. Group 3: Market Dynamics and Huawei's Growth - Despite the challenges, Huawei's market presence grew significantly, with a reported revenue of 858.8 billion RMB in 2019, a 19.1% increase year-on-year, and a consumer business revenue of 467.3 billion RMB, up 34% [12]. - Huawei's smartphone shipments exceeded 240 million units in 2019, marking a 17% increase, and it became the largest supplier of 5G phones globally, with 6.9 million units shipped [12]. Group 4: Impact of U.S. Sanctions - The cancellation of Huawei's partnership with AT&T was a significant setback, highlighting the impact of U.S. government actions on Huawei's business prospects in the U.S. market [4][7]. - The political climate in the U.S. has increasingly influenced the relationship between Huawei and American companies, leading to a more hostile environment for Huawei's operations [7][15]. Group 5: Future Outlook and Development - Huawei's development of its operating system, HarmonyOS, is seen as a critical step in achieving technological independence and countering U.S. sanctions [16][17]. - The company aims to create a system that can run Android applications while maintaining its unique features, reflecting a strategic pivot in response to external pressures [16][17].