The impact of forming a strategic alliance may be that each of the companies can achieve organic growth faster than if it had acted alone. The relationship can be short-term or long-term and the agreement can be formal or informal. Guo Ping, Huawei`s rotating chairman, said Huawei welcomes the opportunity to conduct a digital collaboration with caac. Huawei and its partners will fully support the digital and intelligent transformation of the civil aviation industry. He added that China is at a critical juncture to move from a major civil aviation country to a civil aviation power. As the world`s leading provider of ICT infrastructure and smart devices, Huawei faces major new challenges in achieving high-quality civil aviation development. Huawei will facilitate the development of the industry through its successful practices and experience in digitizing the civil aviation industry. [Beijing, China, May 15, 2019] On May 15, the Civil Aviation Administration of China (CAAC) signed a strategic cooperation agreement with Huawei in Beijing. Under the terms of the agreement, Huawei and CAAC will work together on the development and construction of intelligent civil aviation at the highest level, demonstration of technological innovations and their application, formulation of standards, development and exchange of talent. The two sides will make joint efforts to promote the smart construction of civil aviation and implement the civil aviation energy strategy.
Feng Zhenglin thanked Huawei for its years of technical support in the development of Chinese civil aviation. He believes that this strategic collaboration with Huawei is caAC`s starting point to further promote the digital and intelligent construction of civil aviation for air traffic control (ATC), airports, airlines and service safety. CAAC and Huawei will join forces to design smart aviation with powerful capabilities, strong ambition and great confidence. The agreement took the form of a Memorandum of Understanding (MoU) and was an act of the executive branch that is not subject to ratification by the Senate. Therefore, this is not a treaty that needs to be ratified by the Senate. Formally, he did not form an official alliance. The frequent references of the president and political leaders to Israel as an ally did not have the weight of a legal obligation to declare or go to war on Israel`s side in the sense provided for by the U.S. Constitution. A company can enter into a strategic alliance to expand into a new market, improve its product range or gain an advantage over a competitor.
The agreement allows two companies to work towards a common goal that benefits both. CAAC Administrator Feng Zhenglin said the CAAC greatly appreciates its cooperation with Huawei, which has strategic importance in improving the quality of civil aviation development and moving China from a major civil aviation country to a civil aviation power. The collaboration will focus on the smart construction of civil aviation, where Huawei`s strengths and advantages can be fully exploited. The realization of synergies is generally based on the benefits that accrue to each participant, even if they may have very different objectives. Oil-producing countries, for example, may thirst for carrots and corn, while those on the other side of the agreement may need oil. Neither side can achieve what it wants on its own, so cooperation feeds all the parties involved without resorting to literal or pictorial adoption. Technology continues to advance rapidly and strategic collaboration agreements between well-known companies and niche suppliers have become abundant. These agreements can open up new markets, develop technologies that change society, and combine employee resources in ways that are not possible on their own. In highly specialized fields such as computers, software, drug discovery, and natural resource development, brilliant intelligence remains rare and collaboration can bring lasting joy and prosperity. .