Huawei cuts investments and jobs in Australia

In a statement embattled Chinese telecom network maker Huawei Technologies Co Ltd said, it will be cutting more staff from its Australian operations midst strained relations between Canberra and Beijing.

Huawei will also trim its investments in the country.

In 2018, citing national security concerns, Australia had banned Huawei from supplying equipment for its 5G mobile network.

“In simple terms the 5G ban on Huawei has cost us 1,000 high-tech and high-wage jobs from the economy,” said Jeremy Mitchell, Huawei’s chief corporate affairs officer for Australia. “We have gone from 1,200 staff to fewer than 200 and by next year it will be lower still.”

Since the ban, Huawei has cut $72.3 million (A$100 million) in research and development spending in Australia, said Mitchell.

In a development that potentially underscores headwinds facing the once Chinese giant, Huawei said it would not sponsor an Australian rugby league club due to a downturn in its business. The move comes a year earlier than expected.

Austrlia has been one of the first countries to stand up to China and has called for an independent international investigation into the source of the coronavirus pandemic, which first emerged in Wuhan, China.

China has reacted angrily to the move and has since blocked the import of Australian beef, placed anti-dumping tariffs on Australian barley and has launched an anti-dumping investigation into Australian wine, in an attempt to levy costs on Canberra.

Categories: Creativity, Economy & Finance, Entrepreneurship, Geopolitics, HR & Organization, Strategy

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