The resilience of companies previously seen as vulnerable to sanctions has surprised many. Huawei, once thought to be in decline after restrictions cut off its access to key technology made a dramatic comeback in 2023 by unveiling the Mate 60 Pro. This smartphone, powered by an advanced, domestically produced 7 nanometer processor, caught industry experts off guard. Many believe that China's ability to innovate had been stifled by sanctions, yet Huawei's success told a different story. The company has also built next-generation networking equipment using entirely local components, reinforcing its ability to navigate external pressures. Rather than acting as barriers, trade restrictions have fueled advancements by forcing Chinese firms to develop alternative technologies.
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For years, these [U.S. semiconductor] firms generated up to 30% of their revenue from China. With demand shrinking, new concerns have emerged over whether these policies [tariffs and sanctions] are backfiring. China's share of global semiconductor production has surged. In 2020, it accounted for around 15% of the world's total output. By 2023, that figure climbed to nearly 30%.
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China's influence extends beyond chip manufacturing. Domestically-produced processors are now powering critical infrastructure, including data centers, telecommunications networks and artificial intelligence platforms. Major companies are replacing imported components with locally-developed alternatives, reshaping the supply chain. By 2023, over 60% of China's cloud computing industry was running on homegrown technology, demonstrating the shift away from foreign providers.
~ "China SHOCKING Tech Breakthrough: Did U.S. Sanctions Backfire?," Tesla Universe, March 17, 2025
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| Huawei Mate 60 Pro |
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