Huawei's rapid technological advancements are noteworthy. Once a company that relied on purchasing technology from American firms, Huawei has transformed into a provider of technologies that American companies now seek. The pace of change in China's technological pursuit cannot simply be dismissed as a low-cost offensive.
This week, a significant development highlighted Huawei's technological prowess. American semiconductor company Qualcomm has decided to acquire some of Huawei's U.S. patents. This marks a reversal in the relationship between the two companies, which began in 2001 when Huawei paid Qualcomm for patent licensing. The new agreement encompasses a wide range of patents in areas such as 5G, computing, artificial intelligence (AI), and networking, although the transaction amount and specific patents have not been disclosed.
What is particularly noteworthy is Huawei's approach to technology accumulation. According to the company, it invests over 10% of its annual revenue in research and development (R&D), with cumulative R&D investments from 2007 to 2025 reaching 1.8 trillion yuan (approximately $359 billion). The number of R&D personnel has also grown to around 110,000. While these figures are provided by Huawei, it is undeniable that the company has made long-term investments in 5G, autonomous driving, and AI. Huawei claims to have started its 5G research in 2009 and its AI research in 2016.
Moreover, Huawei's technology is not confined to specific industries. Recently, it was reported that the Italian luxury car brand Maserati is exploring the use of Chinese electric vehicle technology. Maserati's parent company, Stellantis, is in discussions with Chinese automaker Changan Automobile and Huawei regarding electric vehicle development collaboration. Although no binding contracts have been signed yet, if the Chinese plan proceeds, Huawei could provide key software such as smart cockpit and advanced driver-assistance systems (ADAS), while Changan would handle production. This indicates that Chinese electric vehicle technology is making inroads into the European luxury car market.
South Korea must recognize that Chinese companies like Huawei are no longer just producing cheap products in bulk. They are combining patents, software, and manufacturing capabilities acquired through long-term R&D investments to create technologies that global companies need. The alarming aspect is the speed of this process. Huawei is expanding its reach from telecommunications equipment to smartphones, AI, autonomous driving, and now the automotive industry.
South Korea finds itself in a position where it must maintain its technological competitiveness between China and the United States. It is not enough to excel in industries such as semiconductors, batteries, automobiles, and shipbuilding, which have supported the Korean economy thus far. The reality is that Chinese companies could become technology partners for global firms rather than mere competitors at any moment.
Particularly, R&D investments do not yield immediate results. Huawei's current position is the result of decades of investment in talent and research and development, linking technology to business. South Korea also needs to look beyond immediate results and short-term industrial policies, focusing on technology investments that consider the next 10 to 20 years.
While the United States works to contain China's technological rise, Chinese companies are seeking new opportunities in the global market. It is no longer sufficient to view China's technological advancements merely as a process of catching up to the U.S. At some point, China could become a key player in the market where companies from the U.S., South Korea, and beyond must choose their technology partners. Huawei's rapid progress serves as a warning about how quickly South Korea must prepare.
* This article has been translated by AI.
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