On Friday, the 23rd of August 2019, Chinese tech conglomerate, Huawei Technologies, headquartered in Shenzhen, China, told that the impacts of a US sanction barring it from buying products from US suppliers would be much lower than the company initially feared, nonetheless, the sweeping US sanction on China’s Huawei could axe it’s smartphone unit’s revenue by $10 billion this year.
In point of fact, the Chinese tech conglomerate’s $100 billion worth of business has been rammed hard since May 10th this year, when US President Donald Trump had added an additional 25% levy on $200 billion worth of Chinese imports and blacklisted Huawei, the world’s second largest smartphone vendor behind South Korea’s Samsung Electronics, aimed at cutting off supplies of its essential US technology and tech components.
Followed by the US blacklisting of Huawei Technologies over national security concerns, Huawei founder and Chief Executive, Ren Zhengfei had been quoted saying earlier in June that the US blacklisting could hurt the Chinese company’s revenue as much as $30 billion this year.
Nonetheless, adding that Huawei was expecting a loss of around $10 billion stemming out of a sweeping US sanction, much-lower than expected a couple of months earlier, Huawei’s Deputy Chairman, Eric Xu said in a news conference at Huawei’s Shenzhen headquarter on Friday (August 23rd), “It seems it is going to be a little less than that. But you have to wait till our results in March. ”