Huawei could end up challenging Google

More details  surface on  Huawei's planned  rival to Google's Play Store TechRadar

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Interview With Ren Zhengfei, Founder And CEO Of Chinese Telecom Giant Huawei | TIME

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BY imposing restrictions on Huawei Technologies Co, the administration of US President Donald Trump may force the Chinese company to do something that no one in tech has dared to do for a long time: Challenge Google’s control of the Android universe, which earned the US company a huge European fine last year.

Huawei faces two big threats from US technology export restrictions. One is the loss of American components for its products, a blow it cannot parry immediately if it wants to keep making top-flight smartphones.

The other is the potential withdrawal of its Android license, which would stop Huawei from preinstalling the latest Google-approved version of the operating system and some key services Western users see as necessary - above all Google’s Play Store, the biggest repository of Android apps.

This particular obstacle could, under the right conditions, turn into a Huawei strength in Europe, a market that accounts for almost a third of the company’s smartphone unit sales, according to market analytics company IDC.

Last July, the European Commission fined Google €4.34bil for imposing illegal restrictions on smartphone manufacturers. In exchange for the right to preinstall the Play Store, they had to agree, among other things, not to sell devices running versions of Android not approved by Google: so-called Android forks. These operating systems are developed from the open source version of Android, which anyone can use, including Huawei if the US bans it from using American technology. Amazon.com Inc’s Fire OS is the best-known Android fork today, though there are others around.

The commission wrote that by obstructing the development of Android forks, Google and its parent company Alphabet Inc “closed off an important channel for competitors to introduce apps and services, in particular general search services, which could be pre-installed on Android forks.”

In its ruling, it made a strong case for forks as platforms for Google-independent innovation that, if they were allowed to spread widely, could have curbed Google’s market dominance in various areas.

Google has appealed the ruling, but it has also removed restrictions on handset makers to avoid further fines. This, however, hasn’t led to the proliferation of alternative platforms based on open-source Android: Big phone makers are locked into comfortable relationships with Google and see no need to experiment. Days after the European Union fined Google, Huawei, at the time the biggest phone manufacturer that provided an easy opportunity to install alternative Android-based operating systems on its devices, ended the programme without explanation.

If Google takes away the Android license, it’ll yank Huawei out of its comfort zone. The company isn’t likely to give up the European market without a fight, after spending billions of dollars developing a customer base. Consumers in some European countries now appear to be put off Huawei by the US attack, although, paradoxically, it appears to have fuelled the brand’s popularity in France.

France for Huawei

Percentage* of consumers who say they'll consider buying a Huawei device when they're next in the market for a smartphone

Source: YouGov BrandIndex

The company has said it developed its own operating system (likely an Android fork), and it’s been trying to lure developers to its app store.

If the US stops Huawei from preinstalling the Play Store, the Chinese manufacturer probably won’t spend much time educating consumers on how to install it on their own (the way people do now with phones bought in China).

That’s not what most users expect on a new, expensive device. Instead, Huawei will want to offer developers an easy way to sell apps not just in the Google store but also in one preinstalled on Huawei devices - to “multi-home” them.

Huawei hasn’t been eager to get into an open confrontation with Google, which was a valued partner.

But a breakup ordered by the US government changes things. Huawei, with plenty of resources of its own (and most likely with support from the Chinese government, determined to fight back against the US), could soon be investing heavily in the marketing and improvement of an Android fork. Given Huawei’s marketing potential, the effort isn’t necessarily doomed. And it could boost Asian and European developers deterred from competing in some areas - such as mapping, video services or even search - by Google’s enormous power.

Given the pushback in recent years against US tech companies’ relentless data collection and the widespread mistrust of Trump’s administration in Europe, there could well be demand for a Google-free phone from a major manufacturer known for superior hardware.

I know I’d be interested, and the French would probably lap it up, judging by their reaction to the US threats. The EU regulators, too, might be intrigued to see evidence that perhaps the Google antitrust ruling didn’t come too late.

This is something of a utopian scenario, I know. Huawei may never need to go on the warpath against Google: The US and China could strike a trade deal that would make the specter of restrictions go away.

Or, if Huawei is banned from buying US technology, it could find itself unable to produce marketable phones for a while. And, of course, it is a company from Communist China, making it difficult for European regulators, and even for private developers, to embrace it as a savior from the overly dominant US tech companies.

Monopolies in tech don’t last forever, however.

Sometimes they just need a push to start showing cracks. If the US moves against Huawei, it might be unknowingly giving such a push to Google in the smartphone market. — Bloomberg Viewpoint

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China will emerge victorious from US tech crackdown folly

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But it needs a lot of time. During this process, China cannot avoid paying a price and will have a difficult time. But Huawei still has a domestic market of more than a billion Chinese people and the market of the Third World countries. When the Trump administration cracks down on Huawei, the US also goes through hard times. The final victory will certainly be China's, but China must have adequate determination and endurance.

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Ren Zhengfei: 'The world cannot leave us because we are more advanced' -
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Huawei has been under considerable pressure from the U.S., which has been convincing allies in Australia, the UK, and New Zealand to not use the company's 5G equipment due to security concerns.

Huawei founder speaks amid pressure: 'The U.S. can't crush us'

"There's no way the U.S. can crush us," Zhengfei told the broadcaster. "The world needs us because we are more advanced. Even if they persuade more countries not to use us temporarily, we can always scale things down a bit." 

 [Tap to expand] 
http://bbc.in/2XaSipr 

In an exclusive interview with the BBC, Huawei founder Ren Zhengfei describes the arrest of his daughter Meng Wanzhou, the company's chief financial officer, as politically motivated

The UK is set to make a decision on whether it will use Huawei's equipment in March or April, but the country's National Cyber Security Centre has reportedly found ways to "limit the risks" of its technology.

Ren said regardless of ban in the UK, Huawei will continue to invest in the country, and promised the company will increase its focus there if the U.S. doesn't work out.  

"We still trust in the UK, and we hope that the UK will trust us even more," he added. "We will invest even more in the UK. Because if the U.S. doesn't trust us, then we will shift our investment from the U.S. to the UK on an even bigger scale."

On the arrest of his daughter, Ren objected to the actions of U.S., calling them "politically motivated."

"The U.S. likes to sanction others, whenever there's an issue, they'll use such combative methods," he said.

"We object to this. But now that we've gone down this path, we'll let the courts settle it."

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In a tough market, young South Koreans vie for the security of government jobs

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Desire for stability: Many South Koreans worry far more about jobs and the economy than they do about the nuclear threat from North Korea, like this jobseeker at a jobs fair in Seoul last November. — AFP

South Korean Finance Minister Hong Nam-ki, third from left, makes remarks at a meeting on reviving the economy at the government complex in Seoul on Jan. 9, 2019. (YONHAP / EPA-EFE/REX)

In a tough market, young South Koreans dream for the security of government jobs instead of tech innovation and K-pop success.

For more than three years, Kim Ju-hee has been studying full time for an exam that feels like her only shot at a good life in South Korea.

She’s lost count of how many times she’s taken the nation’s civil service exam and failed — though she knows it’s been at least 10. The 26-year-old is not sure what she’ll do if she fails again, so she figures that spending more than eight hours a day studying for her next try, on April 6, makes sense.

Kim hopes to become a government tax clerk, which offers a starting salary of about $17,000, and work for the government until retirement.

“There just aren’t other good jobs,” she said in a phone interview from her home in Seoul, where she lives with her parents.

The most sought-after careers among teenagers and young adults in South Korea, Asia’s fourth-largest economy, are government jobs they can count on to get them to their golden years, not jobs innovating and helping companies grow in the private sector.

Analysts say it’s a symptom of the nation’s slowing economic growth and competition from China in export-driven industries that young South Koreans, about a fifth of the 51 million population, are flocking to what they consider risk-free government jobs not vulnerable to the vicissitudes of the economy. The situation is particularly concerning because it was private companies in sectors like electronics, autos and shipbuilding that fueled South Korea’s rapid growth from one of the world’s poorest nations in the 1960s into an economic powerhouse, analysts say.

Many young people in South Korea say they don’t expect nongovernment job prospects to improve anytime soon despite a host of measures announced by South Korean President Moon Jae-in nearly a year ago to boost employment, including government stipends to companies.



South Korean President Moon Jae-in, right, puts on a safety helmet during his tour of a hydrogen plant in Ulsan, South Korea. Critics have pointed to the lackluster economy to say the president should be focusing on bettering South Korean lives, engaging with North Korea. (YONHAP / EPA-EFE / REX)

Unemployment among those ages 15 to 29 reached 11.6% last spring — a level Moon called catastrophic, compared with a jobless rate that hovered between 3% and 4% for the rest of the country’s workforce. Taking into account young adults who are working part-time jobs or studying for an employment exam like Kim, nearly 1 in 4 are out of a job. By comparison, in the U.S., unemployment among those ages 15 to 24 fluctuated between 8% and 9% in 2018. South Korea uses a different age bracket to calculate its youth unemployment because of mandatory two-year military service.

The desire for stability and security starts so young that 1 in 4 middle school students say they dream of one day becoming not a K-pop star or the next Steve Jobs, but a public sector bureaucrat, according to a government survey from 2017.

Many South Koreans worry far more about jobs and the economy than they do about the nuclear threat from North Korea. Conservatives in South Korea who are critical of Moon’s efforts at detente with North Korea point to the economy, saying his focus should be on bettering lives in South Korea, not on engaging with the North.

Competition for South Korea’s 1.07 million government jobs is fierce. In one round of exams Kim took last year, more than 200,000 people applied, and the 4,953 highest-scoring candidates were hired for open positions — an acceptance rate of 2.4%. By comparison, Harvard’s 2018 acceptance rate was 4.59%.

Kim Y.H., 22, who is about to graduate from college in February with a degree in Japanese, recently began studying for a civil service exam to become a customs agent. She said the popularity of public sector jobs was a sign that her generation is pessimistic about South Korea’s economic outlook.

“The country won’t guarantee your future, even if you’re a college graduate,” she said. “So of course we want to go with the most stable path that’s out there.”

There isn’t the expectation that you’ll grow or get good treatment in the private sector. People choose stability over risk or challenge. Joo Won, economist

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One research report published last year estimated that as many as half a million South Koreans were studying for civil service exams full time instead of working. In 2017, the Hyundai Research Institute estimated that the economic cost from the lost work potential of so many young people spending years studying to get government jobs, rather than joining the private workforce, was more than $15 billion.

Moon’s administration has tried to encourage employment among young adults by paying small and medium-sized businesses to hire them, and by offering government-matched savings programs for young workers. He has also pledged to add 174,000 government jobs by 2022 to meet the heightened demand.

Some analysts, however, say the administration’s stopgap measures won’t do much to fix the problems underlying the push for government jobs.

“There isn’t the expectation that you’ll grow or get good treatment in the private sector. People choose stability over risk or challenge,” said Joo Won, one of the authors of the Hyundai study. “There are only so many public sector jobs the government can create. It won’t fix the situation.”

Many analysts point to the widening gap between the behemoth family-owned conglomerates that dominate the South Korean economy, such as Samsung and LG, and other companies. Large corporations including the chaebol, as they are known, accounted for about half of the revenue in South Korea in 2017 but provided only 20% of the jobs in the country, according to the most recent figures available from the government. And while their share of the economy grew, the number of jobs they offered dropped, because of consolidation and downsizing within the corporations amid the economic slowdown.

 

A Samsung flag and South Korean flag outside the Samsung building in Seoul in January. Analysts say part of problem for young job seekers in South Korea is the widening gap between the quality of jobs at family-owned conglomerates like Samsung and the rest of the players. (Jung Yeon-je / AFP/Getty Images)

That polarisation means stark disparity in income and working conditions between those employed by the conglomerates and those employed elsewhere – with starting salaries at large corporations averaging about US$36,000 (RM 146,370), compared with approximately US$24,000 (RM97,580) at smaller companies – fuelling intense competition for a decreasing number of coveted jobs. “The world was harsher than I thought,” she said.

“If you work for a small or medium-sized company, you become a second-class citizen” with a fraction of the income, long hours and poor benefits, said Kwon Soon-won, a business professor at Sookmyung University in Seoul.

Those without the impressive resumes increasingly needed for jobs at the top companies — internships, perfect grades, proficiency in a foreign language or three — are turning to civil service exams.

Applicants to civil service exams tripled from 1995 to 2016, according to a report by the Seoul Youth Guarantee Center. One online bookseller said it saw a 73.5% increase in sales of civil service exam prep books in 2016 compared with the previous year.

Kwon said South Korea’s high education level is part of the problem — although 70% of those ages 24 to 35 have college degrees, the economy hasn’t kept pace by creating enough quality jobs to meet the increased expectations of those graduates.

Kim Eun-ji, 26, certainly feels that way. With an economics degree from Chung-Ang University, a top-10 college in Seoul, she applied to more than 50 jobs at a wide range of companies big and small but never got past first-round interviews.

“If I think about how many people there are like me in the country, it just feels pointless,” she said, leaving an employment center in Seoul.

She has been studying for a government-issued computerized accounting license to better her employment prospects. Among her friends who graduated around the same time she did in early 2016, only about half are employed full time, Kim said.

Her roommate, who keeps deferring her college graduation, has been making a modest but steady income publishing romance novels online, which strikes her as a more viable option at a steady income than traditional employment.

As a kid, Kim Ju-hee had dreamed of becoming a singer or a teacher. But as an eighth-grader, hearing how hard it was to get a stable job, she set her sights on becoming a bureaucrat.

She’s gotten close to giving up, occasionally applying to other jobs or working part time here and there. But she worries that if she gives up, she’ll have spent years of her life in vain because none of what she studied for the exam will be useful for other jobs.

   By Victoria Kim - Los Angeles Times

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Victoria Kim reports from Seoul, South Korea, for the Los Angeles Times. Since joining the paper in 2007, she has covered the state and federal courts and the Korean community in Los Angeles. Her work has included investigations on the cover-up of the sex abuse scandal in the Los Angeles Archdiocese, killing of unarmed suspects by the Inglewood police, underpaid workers in the garment district and unaccredited law schools in California. She has previously written for the Associated Press in South Korea and West Africa, as well as the Financial Times in New York. Victoria was raised in Seoul and graduated from Harvard University.


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