Daily Management Review

Huawei Chairman Says Its 2020 Revenue Had Grown Despite US Sanctions


Huawei Chairman Says Its 2020 Revenue Had Grown Despite US Sanctions
The Chinese telecom equipment making giant and smartphone maker Huawei Technologies reported a small growth in its profits for the entire of 2020 which was in line with expectations of analysts and experts.
The company reported this profit even though it faced stiff sanctions from the United States, said the rotating chairman of the largest telecom equipment maker on Tuesday.
The administration of the former US president Donald Trump had put the company on an export blacklist in May 2019 which effectively prevented the company from gaining access to critical technology available with American companies which in turn significantly impacted the Chinese firm’s ability to design its own chips as well as to source components from outside vendors. The US administration had imposed the restrictions over concerns that the equipment made by Huawei could be used by Chinese agencies to spy on the US and hence was considered to be a national threat.
Huawei has repeatedly denied it poses any security risk top the US.
"Huawei was confronted with some extraordinary difficulties last year," rotating Chairman Ken Hu said at industry event Mobile World Congress Shanghai. "Operations were relatively stable and in line with our guidance, registering slight growth in revenue and profit," Hu added.
The company hoped that the new US administration under President Joe Biden would "harbour an open policy" towards American companies doing business with Huawei, the company's founder and Chief Executive Ren Zhengfei said earlier this month in what was his first public comments to the media in about a year over the tussle of the company with the US.
According to an official with the Ministry of Information and Information Technology, more than 260 billion yuan ($40.27 billion) in building its 5G network has so far been spent by China. 
Huawei’s new 5G Mate X2 foldable phone, which is powered by the proprietary Kirin processor of the company, was unveiled by it on Monday. Analysts however do not expect this smartphone to challenge the mainstream phone market even though the price of the cheapest model of the series starts at 17,999 yuan ($2,788).
Hu said that 50,000 5G base stations in Indonesia have been set up by Huawei and added that about 2,000 base stations are planned to be built by the company in the rural areas of the African country Ghana.
A spokesperson of the company said that Huawei is expected to post its 2020 full year results in March.