The Chinese telecom giant, Huawei, warned Tuesday that 2020 will be the most difficult year ever for them, due to US trade restrictions and a blow to its overseas sales in 2019, expecting that the Chinese government will respond to those restrictions imposed by America.
The “Huawei” warning comes in conjunction with its announcement of the lowest annual profit growth in 3 years, according to Reuters.
“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,” she said.
Eric Shaw, Chairman of the Board of “Huawei” told reporters during the launch of the company’s annual report: “The Chinese government will not only stand by while Huawei” is being slaughtered, why the Chinese government does not prohibit the use of the fifth generation chips, stations, smart phones and other smart devices produced by American companies For reasons related to Internet security? ”
And Shaw expected that 2020 will be the most difficult year for “Huawei” ever, due to the US measures, warning that imposing more export restrictions could destroy global supply chains in the technology sector.
Huawei said that the net profit for the year 2019 amounted to 62.7 billion yuan ($ 8.9 billion), an increase of 5.6%, in the weakest growth rate in 3 years, and down from a jump of 25% in the previous year.
It is noteworthy that the Chinese company “Huawei” was placed on the “black list” of the United States of America because of the allegations of America that the Chinese company is carrying out activities that violate national security, to announce later the American President, Donald Trump, about easing the restrictions imposed on it.
In July 2019, the Chairman of the Huawei Board of Directors Lianghua said that the blacklisting of the US Department of Commerce of the company could affect the company’s operations worldwide, and it might cause direct damage to American companies, so Huawei requests that The United States to completely exclude it from the corresponding restrictive list.
“The US authorities have blacklisted our company, and we oppose that, because there is no actual basis for these measures, and it will cause harm to American companies, including companies cooperating with Huawei,” Lianghua said.
Meanwhile, Liang Hua described the U.S. decision as completely inappropriate, as it may affect the provision of service to Huawei customers in more than 170 countries.
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