The Chinese telecom company Huawei, which is taking the US government to court over arrest of its official, vowed to “shake off outside distractions” as it announced that its telecom infrastructure business contracted slightly in 2018 due to a global American campaign to blacklist the firm over spying fears.
Huawei said net profit rose to $8.8 billion last year, up 25%.
However, its carrier business, which provides telecommunications infrastructure to much of the world, experienced an unusual decline, indicating that the pressure from Washington could be having a significant impact.
It is the leading manufacturer of equipment for next-generation 5G mobile networks that will bring near-instantaneous connectivity for smartphones, but faces resistance in some Western markets because of fears that China could acquire access to critical infrastructure. “Security concerns are having an impact on Huawei, as more and more countries place restrictions on the firm’s network gear,” Brock Silvers, managing director of Kaiyuan Capital told news agency AFP.
“Moreover, the US-led global movement has only just begun and is unlikely to quickly recede even in the event of a trade war agreement.”
The company has locked horns with the Trump administration after its chief financial officer Meng Wanzhou, daughter of company founder Ren Zhengfei, was arrested in Canada over spying charges.