On Saturday, October 23, 2021 at 7:58:21 AM UTC-5, ltlee1 wrote:

"The question is what Huawei ought to do next. Should it tough out American sanctions and hope, as Victor Zhang, its global vice-president, puts it, that its research and development (R&D) budget, a whopping $21.8bn last year, can “fertilise” a new

array of business activities that will redefine its future? Or should it instead quietly break itself up, dispersing a 105,000-strong army of engineers to seed a flurry of new ventures? In short, should it remain a tall poppy or let a hundred smaller
flowers bloom?

It is a fairly safe bet that Huawei will take the first option. After all, it is an employee-owned company with a fierce self-belief. It has a never-say-die business culture; its salespeople are renowned for drinking anyone under the table in pursuit

of a deal. It could become a national champion for President Xi Jinping’s mission to make the country more self-reliant in technology. And the government in Beijing would hate the idea of it wilting under pressure from Uncle Sam.

The tough-it-out approach is strewn with difficulties, though. ...

Promoting that startup culture in-house may work. But the new endeavours do not generate anything like the revenues of Huawei’s smartphone and networks businesses. ...

Silicon Valley provides a striking precedent. In 1957 the so-called “traitorous eight” walked out of Shockley Semiconductor Laboratory to found Fairchild Semiconductor. The “Fairchildren” became the backbone of the area’s high-tech, risk-

taking culture, establishing Intel, a chip giant, and scores of other firms, including venture-capital veterans like Kleiner Perkins. Huawei’s engineers at HiSilicon, its chip-design unit, could do something similar. That could advance China’s
growing ambitions in the chip industry, illustrated by the unveiling on October 19th by Alibaba, a tech giant, of a new, custom-built, state-of-the-art server chip."

Of course, the US government wants Destruction. Given the US long arm, Huawei definitely needs to meet destruction, big or small, creatively. What the article does not include is the role of the Chinese government and how it could marshall resources to

facilitate Huawei's rebirth or, hopefully, transformation into the next level. Showtime for the CCP led Chinese government and its brand of state capitalism.

Joseph Schumpeter was famous for popularizing the concept of creative destruction. He also predicted Western democracy fading away and the rise of socialism.

"Part III, "Can Socialism Work?" answers, "Of course it can." Socialism for Schumpeter is centralized control over the means of production. Necessary for the success of socialism is reaching the requisite stage of industrial development and resolution of
transitional problems. The assessment of a socialist society should be based less on economic efficiency than on the quality of the bureaucratic apparatus operating the system. Socialism may likely be as successful in satisfying consumers, promoting
economic progress, and enforcing discipline and efficiency. Part IV, "Socialism and Democracy" argues one can have autocratic, theocratic, or democratic socialism."

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1496200

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