Huawei, world’s biggest maker of telecom network equipment and the second-largest smartphone maker was banned by Washington earlier this year from doing business with US companies, preventing its access to technology like Google’s Android operating system.
In an annual New Year’s message to employees, Huawei Technologies said its annual revenue would likely jump 18 per cent in 2019 to 850 billion yuan ($174 billion), and predicted tough times ahead as the US continued to restrict its business.
“In 2020, we will continue to remain on the US entity list,” wrote Eric Xu, Huawei’s rotating chairman, referring to a US Commerce Department list that effectively blocks US technology sales to a company.
“We won’t grow as rapidly as we did in the first half of 2019, growth that continued throughout the year owing to sheer momentum in the market.
The US Government alleges Huawei equipment poses national security risks because it could be used by the Chinese Government to spy on users. Huawei has repeatedly denied its products are a security threat.
It has urged other countries not to buy the company’s 5G mobile network equipment.
Australia is the only country to have categorically ruled out Huawei’s participation in the construction of its 5G network.
Calling difficulty the prelude to greater success, Mr Xu said the United States’ “strategic and long-term” campaign against Huawei was an opportunity to build capabilities to navigate future challenges.
“This will only be possible if we keep on top of long-term trends, keep our strategy focused, and turn crises into opportunities.”
The five-page letter exhorts employees to hone their skills and rid themselves of complacency.
Saying that survival is the company’s top priority, Mr Xu warns that mediocre managers “who have lost their enterprising spirit” will be removed faster than before.
