Research On The Competition Mechanism Of Huawei’s Response Path Against U.S. Sanctions Based On Grounded T Heory

On May 15,2019,the U.S.Department of Commerce announced adding Huawei and 70 affiliated companies to the "entity list";thereafter,without the approval of the U.S.government.Huawei would not be able to purchase components from U.S.companies.Huawei responded by saying that "if the United States restricts Huawei,it will not make the United States safer.nor will it make the United States stronger." Since then.a tug-of-war between an emerging market firm and another country’s government has begun.With the unceasing progress of science and technology in China,more and more technologies have been or will be in the leading position in the world.At the same time,with the improvement of market similarity and resource commonality,more and more high-tech enterprises in China will have direct competition with first-mover countries in this field.When certain fields of the first-mover countries are threatened by China’s development,the former may impose sanctions on China-related fields through policies and diplomacy.From the perspective of the international development of enterprises,in the face of sanctions from other governments,whether a country’s enterprises can take effective measures is the key to sustainable survival and development.At the same time from the perspective of international relations,with the progress of China’s science and technology,the enhancement of economic strength and the improvement of international status.the blockade and suppression of Chinese high-tech enterprises by first-mover countries,especially the United States,is a manifestation of international competition.In the future,China is likely to face similar challenges in the fields of computer,aerospace,bioengineering,and new energy.The research focuses on the theoy of inter-manufacturer competition in dynamic competition,using a case-based research method,taking the competitive reaction events of the two in the process of the US sanctions against Huawei from May 2019 to the present as a case,in order to understand the existing dynamic.Based on competition theory,it analyzes the reasons,ways,and specific measures of competition among manufacturers more deeply.At the same time,the two competing parties in this case are the foreign government and the domestic enterprise respectively,so from the perspective of the main competitor,this research will expand the breadth of the existing research that only focuses on the competitive relationship between the two companies.Accordingly,the key issues of this study can be broken down as follows:1.What strategic preparations has Huawei made to compete with the US government?2.How is Huawei’s competitive process in the face of US government sanctions implemented?3.Given the long-standing US sanctions,how can Huawei gain long-term viability?4.Under the guidance of this case,what is the effective survival path for emerging market firms to face sanctions from Western countries?The key conclusions of this paper are as follows.This paper sets a competitive scenario:Chinese high-tech enterprises face the continuous suppression of leading technologies by firstmover countries in the context of the continuous turbulent globalization environment.The research divides its competition process into three stages,namely competition preparation,competition process,and competition effect.1.The proposal of the "extreme survival hypothesis" is the logical starting point to trigger the start of Huawei’s competitive behavior.The sense of crisis that runs through the company’s development is the ideological basis for this hypothesis.2.The way in which the competitive process is realized is the result of the unity and mutual transformation of the opposites of the competitive action and response.The specific performance is the strategic deployment of four levels of "scientific and technological independence","optimal diversification","globalization strategy" and "innovative thinking".3.The effect of competition is reflected in the acquisition of core competitiveness,and dynamic capabilities are the foundation of Huawei’s long-term development.The key conclusions of this paper are as follows.Manufacturers in one country may respond to sanctions imposed by other governments in two ways:first,competitive actions,that is,specific competitive behaviors initiated on their own initiative,exporting new products,and entering new markets by expanding their business scope;secondly,Competitive response,that is,taking a specific counterattack against the competitor’s attack.In this case,the manufacturer does not change the track but continues to cultivate in the threatened field.By seeking resource substitution,use independent research and development and development of other suppliers to meet the challenges caused by resource constraints.