Chinese tech company Huawei is heavily burdened by US sanctions. Recently, the company has seen its turnover continue to decline. Sales of Huawei’s consumer arm fell by almost half in the first half of 2021.
The United States has banned the use of Huawei technology in communication and network equipment, among other things. Huawei has long been accused of espionage by the US. The company itself has vehemently denied the allegation.
The sanctions cause great damage to the company. Previously, the company competed with tech companies Apple and Samsung in the field of smartphones and with Ericsson, among others, in the rollout of 5G networks.
Then there is also the legal battle over whether or not to extradite financial director Meng Wanzhou to the United States. That process will resume this month. Meng was arrested in late 2018 when she was transferring to Vancouver airport. She is one of the vice presidents of Huawei and the daughter of founder Ren Zhengfei. Huawei is suspected of violating US sanctions against Iran, and the US has requested her extradition.
As a result of the sanctions, which are mainly hindering the smartphone division and the progress of the chip division, Huawei is increasingly focusing on other areas. This includes electric cars, solar parks and cloud software.
“These have been challenging times,” said Huawei rotating chairman Eric Xu. “Our goal is to survive and to do that in the future.” Huawei’s sales fell for the third consecutive quarter. In the past quarter, there was a sharp drop of 38 percent on an annual basis to 168 billion yuan. This contraction follows a drop in turnover of 17 percent and 11 percent in the two previous quarters.