Hello everyone, I am Lu Xinzhi. Welcome to our financial and technological news. A new week has begun. Today we will continue to talk about things that are not convenient to talk about or broadcast on other platforms. It is the indescribable international event that has recently resounded at home and abroad and is still hot. It has triggered a series of reactions in the economy and life.

Should we worry about Huawei?

In a recent public appearance triggered by that unspeakable incident, Huawei's helmsman, Mr. Ren Zhengfei, 75 years old, came out to face the camera in person, but he spoke eloquently. He was originally scheduled to speak for 90 minutes, but ended up speaking for 150 minutes. Everyone can clearly see that the suppression they are facing this time is unprecedented. The content posted on social media is a bit worried, worrying about whether Huawei can make it? Will China's best companies be defeated? In fact, I think everyone can rest assured and don't need to worry too much about Huawei, because first, according to their own logic, they are already prepared.

Second, Ren Zhengfei's mental state and the depth of his understanding of things are obviously better than ours and better than most entrepreneurs. He has his own judgment and solution wisdom. He also joked that we should all focus on production and grow more potatoes, and not worry about anything or make any irresponsible remarks. This makes a lot of sense.

Third, as the saying goes, there is no point in worrying. For such a major event, as the first company ever targeted by a certain government and suppressed in the name of the country, the problems it faces may have far exceeded the imagination of ordinary people.

Of course, we don't have to worry about Huawei, but we can take practical actions to support excellent Chinese companies like Huawei in various occasions, environments, and scenarios. This is also a very good thing.

Will coffee prices rise? The coffee industry may also be reshuffled

The recent changes in the international situation, and the impact of this unspeakable incident, may not be expected, that is, it will also have an impact on the coffee industry. When everyone heard about it, the first impression was that Chinese people don’t drink coffee very much, so what kind of big impact is this? In fact, Starbucks has indeed played a role in promoting the popularity of coffee in China, and it is one of the few companies in the Chinese consumer goods industry that has seen a particularly rapid increase in sales in recent years. If a little more tariff is imposed on it, the effect can be imagined.

There is an interesting phenomenon here, that is, it is very likely that Starbucks will continue to increase the price of its coffee products in China, but as we all know, Starbucks' coffee prices in China are not cheap to begin with, and the profits are already very high. If it increases the price again, it will naturally give other Chinese peers an opportunity to take advantage of it. For example, Luckin Coffee may not need to subsidize it anymore. As long as it maintains the current price without increasing it, it can firmly gain an advantage in this market. Of course, for everyone, whether to drink expensive coffee or the one that suits you in the future is just a small psychological choice.

In short, coffee is not guilty, but Starbucks has become more sensitive. As we have seen recently, Luckin Coffee has been chasing Starbucks to release various news every day, which has also caused great pain for Starbucks. Last year, it experienced a decline in performance in China for the first time. Now, with the deepening of this indescribable incident, the coffee consumption industry in China is likely to undergo some changes. For example, Starbucks is likely to be overtaken or even surpassed by other local Chinese companies in the same industry. We might as well wait and see whether this will be the result.

Is it more difficult to raise funds for startups in the second half of the year?

Due to the recent changes in the international situation, various uncertainties have also increased accordingly. However, there is one thing that is very certain for our entrepreneurial friends, and that is that it is becoming increasingly difficult to obtain financing.

In fact, this is not a one- or two-day thing. There have been such problems in the past two or three years. After the so-called mass entrepreneurship and innovation boom, coupled with the changes in the international situation, the US dollar funds in China have been greatly reduced, and entrepreneurial financing has become more difficult. Moreover, not only are US dollar funds decreasing, but RMB funds are also decreasing, because the funds launched in 2012 and 2013 are theoretically in an exit cycle by 2019 and 2020, but because of the changes in the economic situation in recent years, or the current situation of the capital market, the proportion of funds that can actually exit is extremely small. In this case, many people who invested in the past cannot get their money back, and other funds outside are even more afraid to invest after seeing this situation.

So if you want to start a business now, you have to think clearly. If your business depends on financing to survive, then life may be even more difficult. If you are a light-asset, small-scale business that controls risks and investment, there may be new opportunities.