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Huawei Triumphs Over Sanctions With New Growth Strategies

After years of battling U.S. sanctions, China’s Huawei is set to announce a strong recovery, driven by advances in software, chip production, and smart-driving tech. The company expects to report 860 billion yuan ($118 billion) in revenue for 2024, nearly matching its 2020 peak of 891 billion yuan, despite challenges from chip shortages and U.S. restrictions that slashed consumer business revenues.

Once in “survival mode” due to U.S. sanctions, Huawei has adapted by diversifying into new sectors and developing alternatives to Western technologies. The company has regained momentum, with founder Ren Zhengfei confirming that concerns over China’s reliance on foreign chips and operating systems have eased.

In the consumer space, Huawei shipped over 45 million smartphones in 2024, a 25% increase from the previous year. Despite ongoing constraints in chip yield rates, the company’s consumer business is back on track. Additionally, Huawei’s ventures into the automotive market, notably its collaboration with Dongfeng-backed Seres on Aito-branded cars, have seen impressive sales growth.

Huawei’s innovation extends beyond mobile devices. Having developed its own HarmonyOS to replace Android, the company has also ventured into autonomous driving, supplying advanced tech to electric vehicle makers like Chery, BAIC, and SAIC. This positions Huawei as a prominent player in China’s electric vehicle revolution, with plans to integrate AI into its industrial services and expand its software ecosystem across connected devices.

While its access to Android remains limited, Huawei is aggressively expanding its presence in markets such as the Middle East and Southeast Asia, with a recent launch of the Mate XT foldable smartphone in Malaysia. Its international presence may be patchy, but in markets where it can offer an alternative AI infrastructure, Huawei could dominate.

Price Shifts: Temu And Shein React To Upcoming Tariffs

The online shopping world experienced a jolt as Temu and Shein, popular e-commerce platforms, recently adjusted their prices due to impending tariff changes. These platforms, known for offering budget-friendly options, have echoed with changes that might surprise many shoppers.

What Sparked the Price Hike?

Effective next week, a significant tariff will impact goods imported from China. This tariff follows the expiration of the “de minimis” exemption on May 2. This exemption previously allowed American shoppers to skip tariffs on items valued under $800. The new tariff demands a 120% fee or a flat $100 per postal item, increasing to $200 come June 1.

For instance, Temu’s two patio chairs jumped from $61.72 to $70.17 overnight, while a bathing suit on Shein saw a 91% surge in price. Yet, the price landscape isn’t consistently upward; a smart ring on Temu dropped by $3.

Implications for Consumers

Due to economic shifts and evolving trade rules, both Shein and Temu emphasized their efforts to maintain quality and affordability despite costlier operational expenses. They advised consumers to shop before April 25 to dodge the upcoming hikes, though it’s uncertain if this timing affects the 120% tariff applicability.

Impact on Lower-Income Households

The discontinuation of the “de minimis” exemption is poised to hit lower-income families hardest. Reports indicate these households spend a higher income proportion on apparel, and this change could burden them further.

Further economic insights highlight how industries adjust to challenges, such as in the face of AI-driven changes, potentially offsetting emissions concerns with economic gains.

For buyers and businesses alike, the shifting sands of trade laws call for adaptability and forethought.

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