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Huawei CEO: Growth “Might Slow, But Only Vaguely” After US Restrictions

Recently, Ren Zhengfei—Huawei’s Founder and CEO—said that the development of the Chinese technology giant “might slow down, but only slightly” owing to recent US restrictions. Ren reiterated to Nikkei Asian Review, that the Chinese telecom equipment manufacturer has not infringed any law. “It is anticipated that Huawei’s development might slow, but only slightly, adding that the company’s yearly revenue development might undershoot by 20%. In recent time, Washington placed Huawei—which is one of China’s largest and most successful firms—on a trade blacklist that can make it extremely tough for Huawei to conduct business with the U.S. companies, a conclusion criticized by China, which said it would take measures to protect its companies.

The improvements surrounding Huawei came at a time of trade apprehensions amid Beijing and Washington and amid worries from the U.S. that Huawei’s network equipment and smartphones can be utilized by China to search out on Americans, accusations the company has continually denied. A similar US forbid on China’s ZTE Corporation had roughly crippled business for the minor Huawei competitor early in the last year prior to the cut was lifted. The U.S. DOC (Department of Commerce) stated that it might soon scale back the restrictions on Huawei.

Recently, Huawei was in news as Google ended ties with the Chinese technology titan. That might be a “kill switch” for the Chinese company’s international smartphone ambition. Google’s shift to stop certifying its Android mobile OS (operating system) to Huawei can deal a big blow to Huawei’s aims to become the leading player in smartphones globally. The U.S. technology conglomerate has discontinued business activity with Huawei that engages the transfer of software, hardware, and key technical services. Reportedly, Google made the move in context to obey Washington’s verdict to put Huawei on the “Entity List,” indicating American companies need to receive a license to sell goods to the Chinese firm.

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Lead Editor At ZMR News Research

Having almost 6 years of experience with ZMR News Research, Floyd Breaux also manages the Business division here. With his extraordinary talent in writing content, he also looks after training the interns here at ZMR News Research. Floyd has completed his Bachelor’s in Finance. During his free time, Floyd never leaves this chance and makes sure to utilize it with his family, who resides in a different town due to some reasons.