Despite the ban on it by the United States government which prevented the Chinese telecom and tech giant Huawei from accessing products form a host of its suppliers in the US, the company has reported a sharp increase in its revenues for the first half of the current year. The company however issued a warning for tough times ahead for it but did not provide much detail by what troubles and challenges it expects to come its way.
The company was put on the US Commerce Department’s so called ‘entity list’ in May this year which effectively barred all American companies from doing any business with Huawie because of the concern of the US government that the equipment of the company would be a threat of the national; security of the country. Huawie has denied all such allegations by the US. The Chinese tech giant is also the largest manufacturer of telecommunication equipment products in the world and is the leader in the 5G network development industry.
And even in the midst of such campaigning by the US, the company reported a sharp jump of 23 per cent in revenues year on year for the first half of the current year. The smartphone shipments by the company globally also increased by 24 per cent.
A number of Western countries
Several countries have raised concerns that Huawei equipment could be used by China for surveillance, although the company has vehemently denied the allegations.
The US raised the stakes in its tensions with China in May, when the US Commerce Department added Huawei to its “entity list”.
The move bans the company from acquiring technology from US firms without government approval.
Since that took place towards the end of the financial reporting period, the results showed a muted impact so far.
“Given the foundation we laid in the first half of the year, we continue to see growth even after we were added to the entity list,” said Liang Hua, Huawei’s chairman, in a statement.
“That’s not to say we don’t have difficulties ahead. We do, and they may affect the pace of our growth in the short term.”
The results showed Huawei’s 5G ambitions remained intact, even as the US has urged allies to shun the firm in their next-generation networks.
Huawei said it had secured 50 commercial 5G contracts and shipped more than 150,000 base stations to markets around the world.
While Huawei has remained largely sanguine in the face of US pressure, it has already issued some warnings.
In June, Huawei founder Ren Zhengfei said international sales of the firm’s handsets had sunk 40% in the past month and said the firm would slash production by $30bn (£24.9bn).