Huawei says US ban hurts more that expected, may whack $30bn

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Huawei says US ban hurts more that expected, may whack $30bn

On Monday, the 17th of June 2019, founder and CEO of the world’s No. 1 telecom equipment manufacturer, Huawei Technologies, Ren Zhengfei said that the company had been experiencing a heavier-than-anticipated hit over a US ban aimed to cripple the China’s telco gear maker’s supply chain, while the company founder had also slashed its revenue forecast for 2019 amid a terrible trade battle against US all over the world.

First downbeat comment in public from Huawei founder came as a surprise to many, as Huawei had been claiming its technology to be self-sufficient over the recent weeks, however, on Monday’s commentary, Ren had been quoted saying that the US ban on Huawei would likely to evaporate about $30 billion in yearly revenues.

In fact, earlier on May, shortly after adding 25 percent punitive tariff on $200 billion worth of Chinese imports, United States had put a ban on China’s Huawei as well citing national security issues, barring it from buying supplies from US suppliers, which would likely to handicap its entire global business.

However, on Monday (June 17th), citing a strong US intent to crack the Chinese company, Ren said at his Shenzehen headquarters, “Huawei had not expected that U.S. determination to “crack” the company would be “so strong and so pervasive.

We did not expect they would attack us on so many aspects. We cannot get components supply, cannot participate in many international organizations, cannot work closely with many universities, cannot use anything with U.S. components, and cannot even establish connection with networks that use such components”.

Huawei, the world’s No. 2 smartphone vendor, behind South Korea’s Samsung electronics. had been expecting a revenue of $100 billion this year and the next, slashing an initial growth target between $125 billion to $130 billion.