Chinese vendor Huawei expects to reach total revenues of CNY850 billion ($121.6 billion) in 2019, which would represent an increase of approximately 18% year-on-year, Huawei’s rotating Chairman Eric Xu said in a statement.
“These figures are lower than our initial projections, yet business remains solid and we stand strong in the face of adversity,” the executive said, referring to the ban implemented earlier this year by the U.S. government.
“Despite concerted efforts by the U.S. government to keep us down, we’ve made it out the other side and continue to create value for our customers,” he added.
In May, the Trump administration confirmed that the U.S. Department of Commerce added Huawei to its Entity List, as the U.S. government believes that the Chinese authorities use, or could use, the vendor to carry out spying activities — accusations that have been rejected by the company.
The decision by Washington effectively banned the company from buying parts and components from U.S. companies without U.S. government approval. Under the order, Huawei will need a U.S. government license to buy components from U.S. suppliers.
The Trump administration has also been urging key allies, including the U.K and Germany, not to allow the Chinese companies to take part in 5G contracts.
“In 2020, we will continue to remain on the U.S. Entity List. We won’t grow as rapidly as we did in the first half of 2019, growth that continued throughout the year owing to sheer momentum in the market. It’s going to be a difficult year for us. We will have nothing to rely on but the hard work of our people, as well as the ongoing trust and support of our customers and partners,” Xu said.
“Survival will be our first priority. To this end, we need to remain dedicated, always put our customers first, and keep creating value. Specifically, we will focus on the following four areas: sustaining growth, improving our capabilities, optimizing our organization, and controlling risks.”
The executive also highlighted that in the carrier business, the firm needs “to actively drive the global development of 5G and seize opportunities in network deployment.”
“Going forward, we remain committed to embracing and leveraging a global supply chain – including US suppliers – to hone our competitive edge. Beyond developing leading products, we need to extend our roots deep into the soil so that we can maintain supply continuity,” Xu added.
The Chinese vendor also will try to focus on the diversification of its supply chain in 2020. “We must increase supply chain diversity as this is essential to our supply security. Any risk that undermines our business continuity must be treated as a matter of life-and-death,” the executive said.
