Expansion of the range of paid technical categories

For Wi-Fi6 consumer-grade products (terminal products containing Wi-Fi6 modules, such as routers), Huawei's quotation is US$0.6 per unit. Huawei said it will also provide "one-stop" Wi-Fi licensing through organizations such as patent pool operating companies.

For IoT devices, Huawei distinguishes between two device types. For devices centered around Internet of Things technology, such as asset trackers and smart censors, Huawei uses a percentage rate of 1% of the product’s selling price, with a cap of $0.75 per unit. "This arrangement is to allow even the cheapest IoT products to be licensed," said Shen Hongfei, vice president of Huawei's legal department and head of the major project department.

The other is a device that helps basic products connect to the network, such as smart meters, shared bicycles, etc. The rate ranges from 0.3 to 1 US dollars, mainly reflecting the value of wireless connections, rather than the value of basic products.

The scope of Huawei's early patent fees was mainly in the field of telecommunications equipment. Starting from 2021, Huawei began to charge patent fees for 4G and 5G mobile phones. In terms of mobile phones, Huawei is a major contributor to many key technologies of 4G/5G standards such as carrier aggregation, modulation, and polar codes.

New energy transformation in Latin America brings new markets

Latin America strictly refers to the Americas south of the United States, including Central America, the West Indies and South America. Latin America currently includes 33 independent countries, with a population of about 660 million and a total economic volume of US$48 trillion, accounting for 8.4% and 5% of the world respectively.

Last year, the total global car sales were about 79.85 million, and the Latin American market sold about 5.16 million, accounting for 6%, making it the fifth largest car market in the world. Among them, Brazil is the largest country in Latin America and the eighth largest auto producer in the world; Mexico is the second largest economy in Latin America and currently the seventh largest auto producer in the world.

As the fifth largest auto market in the world, Latin America's new energy vehicle transformation process lags far behind the global level. Yang Weiqi, President of Great Wall Motor Latin America Regional Market, publicly stated that the global new energy vehicle era has arrived, and the global penetration rate of new energy vehicles will reach 21% in 2022, while the three Latin American countries, Brazil, Mexico, and Chile, accounted for only 1% of new energy sales in that year. The Latin American market is also facing a new energy revolution.

Taking Brazil as an example, although the sales base of new energy vehicles is low, the growth momentum is good. According to the data released by the Brazilian Electric Vehicle Association, in 2022, the sales volume of Brazil's new energy vehicle market will reach 49,245 units, a year-on-year increase of 41%, setting the highest record since 2012. It is expected that in 2023, it will achieve a year-on-year high growth of about 75%. . Brazil is becoming a new round of growth momentum for the new energy vehicle industry in Latin America.

In the transformation process of the Latin American auto market, Chinese autos, which have already led the world in electrification, are facing huge historical opportunities. Based on this, leading independent brands have deployed in the Latin American market.

At the end of 2021, Great Wall Motors acquired Daimler's Brazilian factory and completed the delivery, starting localized production operations. At the end of 2022, Great Wall Motors will release the GWM brand in Brazil, and all products in its series will be new energy. In March this year, the first product of Great Wall Motors in Brazil was launched, and the official delivery began in May.

Data show that in May and June this year after the official start of delivery, Great Wall Motors ranked first in Brazil's new energy vehicle market in terms of sales volume. In the future, Great Wall Motors' strategy in the Latin American market will focus on the field of new energy, and plans to quickly introduce 4 SUVs, 3 pickups and 2 pure electric products in the Latin American market. Before Great Wall Motors, Volvo was the first car brand in Brazil to market a full range of new energy products.

Also at the end of 2021, Ford's plant in the Camasari Industrial Park in Brazil was closed, and since then there have been rumors that BYD intends to take over the plant. On July 5 this year, BYD and the Bahia State Government of Brazil jointly announced that the two parties will set up a large-scale production base complex in Camasari, with a total investment of 3 billion reais (equivalent to about 4.5 billion yuan).

The production base complex is BYD's first electric vehicle factory outside of Asia. It is planned to be put into operation in the second half of 2024. A vehicle production plant and a processing plant specializing in lithium iron phosphate battery materials. Among them, the new energy passenger vehicle production line covers pure electric and plug-in hybrid models, with a planned annual production capacity of 150,000 vehicles.

From "trading nomads" to local cultivation

Since 2020, my country's auto exports have basically increased by one million vehicles a year. In 2021, China's auto exports will exceed 2 million, and in 2022 it will reach 3.11 million. Among them, Latin America is a popular area for my country's auto exports. In 2022, Mexico and Chile will rank first and third in China's vehicle exports, with export volumes of 254,500 and 211,800 vehicles respectively.

Judging from the recent trends of the above-mentioned car companies, the process of my country's cars going overseas is gradually entering the deep water area, and the trend is shifting from "trade nomadism" to "localized deep cultivation".

Zhang Bin said on the forum that when Great Wall Motors first went overseas, it was purely for trade. It found a dealer at the end, seized the market with a low-price strategy, and even competed with second-hand cars for prices. This is also the starting point for Chinese auto brands to go overseas. . However, with the development of overseas markets, Great Wall Motors has established overseas subsidiaries and overseas factories. This is also a manifestation of the transformation from general trade to localization. Chinese brands are going in this direction to establish their own brand awareness locally. It's also more valuable to go out that way.

In addition, Chinese car companies may also consider storing lithium resources for their deep deployment in Latin America, because South America in Latin America is the region with the most abundant lithium resources in the world, and the South American "lithium triangle" (Bolivia, Chile, Argentina) has proven Lithium reserves account for as much as 55% of global reserves. At present, the competition for lithium resources in various countries is fierce. By building factories locally, Chinese car companies can bind local resources more deeply.

At the same time that BYD announced the construction of a factory in Brazil, there were media reports that BYD was joining the Latin American lithium mining boom to lock in more supplies of key raw materials for power batteries. Li Ke, executive vice president of BYD, said in an interview that BYD is negotiating with the Chilean government and companies including SQM on new lithium extraction technology, while in Brazil, BYD has a small independent mining project.

In addition to lithium resources, in terms of new energy basic materials, Brazil's graphene resources rank second in the world, nickel ore ranks third in the world, and manganese ore reserves also rank fourth in the world.

In addition, Mexico in Latin America may become a new overseas destination for Chinese car companies. A person in charge of an independent brand's overseas market once told a reporter from China Business News that it is an inevitable trend for Chinese car companies to use Mexico as a springboard to enter the US domestic market.

Sun Xiaohong said at the forum that Chinese car companies should be wary of the impact of the "near-shore outsourcing" trend in the United States and Mexico. The United States intends to restructure the supply chain and transfer the supply chain from China and Asia to the United States or places close to it. According to the USMCA agreement, by 2025, the local production of automobiles and some core parts must reach 75% in order to enjoy the zero-tariff preference in the US market. "In the past, everyone was more concerned about the outflow of Chinese manufacturing to Vietnam and India. In fact, the momentum of China's transfer to Mexico is also very strong. In recent years, almost one-seventh of the manufacturing industry that has moved out of China has been transferred to Mexico."

News broke earlier this year that Tesla would build a Gigafactory in Santa Catarina, in Monterrey, northern Mexico. It is reported that after the completion of the Tesla Mexico plant, the annual production capacity will exceed that of the Shanghai plant and become Tesla's largest plant in the world. In addition, while Tesla went to Mexico to build a factory, it was also mobilizing Tesla's Chinese suppliers to go overseas simultaneously to build a factory in Mexico. At present, more than 20 Chinese suppliers of Tesla have announced plans to build factories in Mexico or have already built factories in Mexico.

In the joke, the blockchain is compared to a person who is crossing the road to get to the other side. However, in the context of blockchain, the "other side" is not a physical location, but rather another ledger. A ledger is a record of transactions or data. In the context of blockchain, a ledger is a distributed ledger, which means that it is stored on multiple computers.

The joke is funny because it plays on the dual meaning of the word "ledger." In the context of blockchain, a ledger is a record of transactions or data. However, in everyday language, "ledger" can also mean "the other side of the road." So, the joke is that the blockchain crossed the road to get to the other ledger, which could be interpreted as either "another record of transactions" or "the other side of the street."