Huawei’s sales drop 16.5% in the first quarter under the pressure of US-tech sanctions

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The Chinese telecom giant Huawei announced on Wednesday that its first-quarter revenue declined due to US sanctions.

Huawei has been at the center of the trade and technology competition between the United States and China in recent years, and the Donald Trump administration has accused it of potential espionage on behalf of Beijing without providing hard evidence.

As a result, in 2019 Washington blacklisted it from obtaining essential US technology for its production processes, especially chips.

The private infrastructure of the fifth generation (5G) technology has also been removed or delayed in a number of Western countries due to national security concerns, which has sparked sharp criticism from Beijing.

The United Kingdom, New Zealand and Australia banned the Huawei group from 5G networks, following US pressure.

Huawei said it achieved 152.2 billion yuan ($ 23.4 billion) in the first quarter of the year, down 16.5 percent year-on-year. It attributed this decrease to a decline in consumer revenues as a result of selling the Honor brand to a local alliance. Late last year.

“2021 will be another challenging year for us, but it is also the year in which our future development strategy will begin to take shape,” the current president of the group, Eric Shaw, said in a statement.

Huawei’s CFO is currently under house arrest in Canada and is fighting her extradition to the United States on charges of engaging in fraudulent business with Iran in defiance of international sanctions.

And the pressure exerted by Washington affected Huawei’s results last year. Other than the year 2019, the group has not yet revealed in detail the number of phones it sold in 2020.

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