32% drop in turnover, weighed down by US sanctions

The group was blacklisted by Donald Trump’s government, a position that has not been reviewed since.

Chinese telecoms giant Huawei on Friday announced a third-to-one revenue response for the first three quarters, as a result of US sanctions. The group achieved between January and September a turnover of 455.8 billion yuan (71.3 billion euros), he said in a statement.

A year earlier in this period, Huawei had sold 671.3 billion yuan worth of goods and services. This is a drop of 32.1% of its turnover over one year. Its profit margin, on the other hand, increased by 10.2%, i.e. a performance higher than that of the same period of 2020 (8%). Consumer activities and in particular the smartphone branch were “paidby the situation, conceded the group’s current president, Guo Ping. Activities aimed at professionals, such as 5G equipment, for which the group is a world leader, have for their partmaintained“.

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US sanctions

The world’s leading supplier of network and telecom equipment, Huawei entered the mobile phone market in 2003, using Android. It was once one of the top three smartphone makers in the world, along with Korean Samsung and American Apple. And it temporarily held the number one spot, boosted by Chinese demand and sales in emerging markets. But US sanctions, which notably cut the company off from global component supply chains, have thrown its smartphone arm into uncertainty. “We won’t give up our smartphone businessGuo Ping recently assured his employees.

Huawei has been at the center of the Sino-American rivalry for several years, against the backdrop of a trade and technology war between the two leading world powers. Huawei had found itself in the crosshairs of the former Trump administration, which accused it, without however providing evidence, of potential espionage for the benefit of Beijing. In 2019, Washington thus placed the group on a blacklist to prevent it from acquiring American technologies, essential for its products.

The Biden administration has maintained those restrictions. Earlier this year, Huawei founder Ren Zhengfei called on the new US government to “an open policyafter the Trump-era blows. Based in Shenzhen in southern China, Huawei has some 197,000 employees and is present in more than 170 countries.

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Faced with pressure from Washington, the founder of Huawei, Ren Zhengfei, called at the start of the year on his employees to accelerate the diversification of the group. Thereby, “the United States will have very little control over our future development“, he judged. In the midst of a technological rivalry with China, Washington had also arrested in 2018 in Canada, the financial director of Huawei, Meng Wanzhou, on suspicion of fraud. The arrest and detention of the group’s boss’ daughter had marked the start of a diplomatic crisis between Beijing and Ottawa and the in China of two Canadians in retaliation. After nearly three years of proceedings, Meng Wanzhou was able to regain his freedom at the end of September and return to China.

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