Huawei’s 5G smartphone comeback, with advanced chip wrapped in secrecy, releases chokehold of US sanctions on China tech

Huawei Technologies, a leading tech giant from China, is making a significant comeback in the 5G smartphone market. Earlier this year, the company's deputy chairman, Eric Xu Zhijun, stated that they couldn't manufacture 5G smartphones without the approval from the US Department of Commerce. However, Huawei has recently launched a new 5G smartphone, the Mate 60 Pro, which has taken the industry by surprise. This phone is powered by a new central processing unit (CPU), which is essentially the brain of the phone. The creation of this CPU has sparked intense speculation due to the strict trade sanctions imposed by the US. The company has remained tight-lipped about it, but the launch has stirred a wave of patriotic fervour in China. The citizens view the new phone as a symbol of China's victory over the stringent US sanctions. Huawei has also launched a foldable model, the Mate X5, which is based on the same CPU as the Mate 60 Pro series. This model has also sold out, leading Huawei to increase its smartphone shipment target by 20% for the second half of the year, buoyed by the popularity of its Mate 60 Pro series. However, there are still numerous questions about how Huawei's return to the high-end market will impact sales of other flagship smartphones, such as Apple's new iPhone 15 series. Huawei has had to adapt its production of handsets and telecommunications network equipment due to the tightened trade restrictions imposed by Washington. The company's founder and CEO, Ren Zhengfei, revealed that they replaced more than 13,000 components in their range of products with local substitutes and redesigned over 4,000 circuit boards in the past three years as a response to US trade sanctions. Despite these challenges, Huawei's return to the 5G smartphone market is seen as a major public relations victory for the company. However, its future success will hinge on its ability to ensure a stable supply of key components in a cost-effective manner.