Shenzhen For the world’s largest network supplier, Huawei, the current year could be the most difficult in its history due to the US sanctions. Eric Xu, Chairman of the Board of Directors, warned on Tuesday that further export restrictions could destroy global supply chains.
Huawei already felt the problems last year. The profit increase weakened significantly to 5.6 percent, which Huawei brought in the equivalent of almost 8.1 billion euros. It was the smallest plus in the past three years. Things were not going so smoothly, especially outside of China.
US-led Western intelligence agencies accuse Huawei of inappropriately connecting to the Beijing government. You suspect that the manufacturer’s equipment or cell phones could be used for espionage purposes. Evidence for this has not yet been presented, Huawei rejects the allegations.
Even so, the US government blacklisted the company and warned other countries against using Chinese equipment to build its 5G networks. In addition, the government in Washington also wants to take action against chip sales to Huawei.
“The Chinese government will not just watch and see how Huawei fillets are filleted on the kitchen board,” Xu warned. In return, China could also ban the use of 5G semiconductors or other products from US companies.
So far, Huawei has always stressed that it operates completely independently of the Chinese government. With the open threat to the United States, Xu now led reactions from Beijing.
The statements made by Huawei’s chairman are the latest high point in the dispute. Huawei had to launch its latest top devices outside of China without the Google Android operating system. Industry experts therefore fear a drop in sales. In Germany or other countries, consumers might not be willing to pay hundreds of euros for devices on which they cannot simply use popular services such as Google Maps or YouTube.
The Group’s sales climbed last year, primarily due to the flourishing smartphone business in Germany, by 19 percent to the equivalent of around 110 billion euros. According to market researcher Canalys, Huawei, as the industry leader, now has a market share of 39 percent in the People’s Republic. Huawei benefited from the fact that many Chinese wanted to buy smartphones from a domestic provider after the US blacklisted the company.
Huawei had actually announced that it would no longer use components from the United States for its products. When analyzing the new flagship smartphone P40, the Financial Times however, after components from US companies continued to be used.
More: Huawei builds first factory outside of China in France.