Sanctions benefit us: Huawei starts investing in Russia instead of the US

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Have you ever heard about the law of conservation of energy? It consists in the fact that energy cannot arise out of nothing and cannot disappear without a trace just like that, but can only pass from one form to another. In a simpler interpretation, it sounds like this: if it has disappeared somewhere, then it has arrived somewhere. But, despite the fact that this is the basic law of nature, by and large it is applicable in other areas, for example, in the market. Therefore, one should not think that the ousting of Huawei from the American market will pass without a trace, because the Chinese company has found where to transfer its influence.

Huawei will develop 5G in Russia

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Huawei has decided that it will henceforth invest in Russia instead of the United States, from where it was finally expelled this summer, refusing to renew its business license. Huawei CEO Ren Zhenfei told the South China Morning Post about this. Now it is planned that the company will increase its presence in Russia, simultaneously developing several areas – from fifth-generation networks to conducting scientific research with the participation of Russian scientists.

5G from Huawei in Russia

Ren Zhenfei

Ren Zhenfei promised to pay more attention to Russia

After the United States included us in the list of companies that pose a threat to national security, we decided to shift our attention from the United States to Russia, increasing the volume of investments, expanding the team of Russian scientists and increasing their salaries, ā€¯Zhenfei explained.

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It would seem, what do we care about increasing the salaries of scientists working in the interests of Huawei? But this is not the end of it. Huawei plans to develop 5G networks in Russia, which we do not have yet. To do this, the company will supply us with specialized equipment, which initially the operators could not purchase due to the small volumes they required. This, in turn, will allow you to kill not even two, but three birds with one stone:

In Russia there will be equipment for ensuring the operation of the Internet, which cannot be influenced by the US special services; 5G will allow more active testing of self-driving cars, which are still a rarity on public roads; The advent of 5G will lead to sales of the most advanced smartphones, streaming services and augmented reality.

Huawei in Russia

Fifth generation networks

Now US sanctions can really help Russia

Political games aside, the strengthening of Huawei’s influence in Russia is really good news. The fact is that earlier Russian operators, which were not allocated the frequencies of 3.4-3.8 GHz, could not purchase equipment that is used in the rest of the world. But the so-called Chinese frequencies used in China suited us.

But it was impossible to buy equipment in the Celestial Empire, due to the fact that local suppliers agreed to supply it only on condition of purchasing large volumes that our operators simply did not need. Huawei will make these concessions to gain a foothold in Russia, and we will all benefit from this.

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However, Huawei, according to Ren Zhenfei, is not going to completely break off relations with the United States. According to him, the company understands that this is not an initiative of the entire American people, but of individual politicians. Therefore, he expects a change in the status quo and the lifting of sanctions, which will lead to the resumption of mutually beneficial cooperation between the parties.