Huawei warns that China will respond to the restrictions imposed by America

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Huawei logo in a photo from Reuters archive

SHENZHEN, China (Reuters) – The telecom giant warned Huawei on Tuesday that 2020 would be the most difficult year ever for them due to US trade restrictions that hit its overseas sales in 2019 and expected the Chinese government to respond to those restrictions imposed by the United States.

The warning came as the world’s largest telecom equipment maker announced the lowest annual profit growth in three years.

She said that Beijing may respond to the US measures, which included restricting the sale of chips to it, by restricting sales of American products in China and switching to rely on alternative suppliers in China and South Korea.

“The Chinese government will not only stand by and Huawei slaughter … Why does the Chinese government not prohibit the use of 5G chips, terminals, smartphones and other smart devices produced by US companies for reasons related to Internet security?” Huawei Chairman Eric Shaw told reporters during the launch of the company’s annual report.

The United States claims that the Chinese government can use Huawei’s communications equipment for espionage purposes, which the company rejects.

Shaw expected 2020 to be the most difficult year for the company because of the US measures, and warned that further export restrictions could destroy global supply chains in the technology sector.

Huawei said net profit for 2019 was 62.7 billion yuan ($ 8.9 billion), an increase of 5.6 percent, the weakest growth rate in three years, and a decrease from a jump of 25 percent in the previous year.

Prepared by Salma Negm for the Arab Bulletin – Edited by Moataz Mohamed

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