Logo of Phnom Penh Post newspaper Phnom Penh Post - Huawei founder says group to resume growth in 2022

Huawei founder says group to resume growth in 2022

Content image - Phnom Penh Post
Huawei CEO and founder Ren Zhengfei admitted the US sanctions had also impacted the firm’s financing. FABRICE COFFRINI/AFP

Huawei founder says group to resume growth in 2022

The founder of embattled tech giant Huawei last week said the firm’s financing from Western banks was not “very smooth”, but insisted the group would resume growth in 2022 despite biting US sanctions.

Amid a broad trade war with Beijing, Washington added the Chinese tech giant to a commerce department “blacklist” in May, imperilling the firm’s access to critical US components and software.

Speaking at a panel discussion organised by the company at its headquarters in Shenzhen, southern China, CEO and founder Ren Zhengfei admitted the US sanctions had affected Huawei’s financing.

“In the past we used to get financing from western banks, now the western bank financing pipeline has slowly been not so smooth,” Ren said.

“So we’ve changed to trying domestic banks,” he told the audience.

Huawei planned to raise up to 30 billion yuan ($4 billion) in its first domestic bond issues, Chinese business news magazine Caixin reported earlier this month.

Ren said he was not sure of the precise figure.

The tech giant is the world leader in high-speed 5G mobile communications equipment and a top smartphone producer.

The firm is ramping up production of its 5G base stations, Ren said.

“A large number of western companies have already received our products that don’t have US components in them,” Ren told academics and reporters at the forum, saying he believed customers had faith in Huawei as a supplier.

Ren said operations remained at full-throttle, but added that “there will be no huge increase” in business next year.

“By the end of next year people will see and believe that Huawei truly has survived,” he said.

“In 2022 and after everyone will see Huawei has resumed growth, they’ve resolved the difficulties and started to grow,” said Ren.

Huawei’s sales unexpectedly rose in the first half of this year, the company said in July.

The once media-shy tycoon has become more open as Huawei fights for its future.

The US has expressed fears that Huawei equipment could contain security loopholes that allow China to spy on global communications traffic.

The company has repeatedly denied the US accusations.

Ren dangled the prospect of licensing all of Huawei’s 5G intellectual property to a western telecom firm – in effect creating a potentially dangerous rival.

He said he preferred to license to a single US firm – in part because the US needed the most help in developing

5G technologies. Huawei would profit from licensing fees, he added.

Asked about the hit to Huawei’s business this year, Ren said he reckoned Washington’s sanctions would knock about $10 billion off revenue.

Last year the company crossed $100 billion in annual revenue for the first time.

The firm also faces a tough battle to maintain smartphone market share outside China.

Its new models – like its recently-launched Mate 30 – lack the Google Play Store, which provides access to hundreds of thousands of third-party apps and games as well as films, books and music.

Users will also be unable to download popular apps such as Google Maps and Youtube.

MOST VIEWED

  • First deportees of the year touch down in Cambodia

    Twenty-five Cambodian-Americans landed in Phnom Penh on Wednesday, marking the first such deportations of the year. “On Wednesday, US law enforcement authorities deported 25 Cambodian nationals that immigration judges determined had no legal basis to remain in the US,” said Arend Zwartjes, spokesperson for the US

  • Qatar Airways to connect Doha and Siem Reap town

    Qatar Airways Company QCSC has announced a new route connecting Qatar’s capital Doha with Siem Reap, a move hailed by local officials as a significant step to boost tourist numbers. A Qatar Airways representative, speaking at the Kuwait Aviation Show, announced on Thursday that

  • Sokha defence denies Tech’s claims

    ON DAY two of Kem Sokha’s treason trial, lawyers for the government said the defence had raised questions in an attempt to allow their client to make a public statement and a conclusion to the case, something his legal team denied. Ky Tech, a

  • Cambodian general visits Myanmar to enhance national defence cooperation

    Royal Cambodian Armed Forces (RCAF) commander-in-chief Vong Pisen is now in Myanmar leading a delegation that aims to improve ties, particularly in national defence, with the fellow Asean member. The timing of Pisen’s four-day visit to the Southeast Asian neighbour is highly symbolic, with

  • Probe underway after wreckage of drone with Chinese characters found

    Air Force Command spokesman Prak Sokha said on Sunday that investigations are underway regarding the wreckage of a drone that was recovered in Koh Kong province’s Koh Sdech commune in Kiri Sakor district. The wreckage has been taken to the capital for further examination,

  • Sokha’s treason trial begins

    The treason trial of Supreme Court-dissolved Cambodia National Rescue Party (CNRP) president Kem Sokha began at the Phnom Penh Municipal Court on Wednesday with the presentation of a two-minute video clip. The footage, which was the basis of the charge against him, was dismissed by