Huawei may be out of hot water following its survival from the US tech war this year.
According to a new year's message posted by its rotating chairman Eric Xu, Huawei Technologies Co expects to report 636.9 billion yuan, which is $91.5 billion, in revenue for 2022.
In case you missed it, the struggling Chinese tech giant has been battling a tech war with the United States due to strict US sanctions. Despite Huawei's efforts to diversify its revenue streams, the flat increase underlines the growing challenges the company is facing after US sanctions severely hurt its smartphone industry and international sales.
According to South China Morning Post, in comparison to 2021, when Huawei's revenue fell 28.6% year over year, the marginal growth of 100 million yuan, or 0.00016%, represents an improvement.
Unfortunately, Huawei did not make the top five list of Chinese vendors in the third quarter, which was headed by Vivo, Oppo, Honor, Apple, and Xiaomi.
How Huawei Overcame Difficulties Amidst Tech War with US
Further elaborating on the company's standing, Eric Xu, chairman of Huawei, stated that the company had survived in the past by "overcoming great hardships" and that it will seek "quality" survival in 2023, according to ITWeb.
Xu adds that Huawei has exited its "war mode" and managed to gradually "turn peril into safety" during the course of 2022.
"We need to actively drive progress, keep inspiring passion across the organisation, and further hone our capabilities. We need to be proactive about improving the business environment and more effectively managing risks," Xu said.
Analysts and the general public, both at home and abroad, have been closely following Huawei's battle to endure US penalties. The Huawei telecommunications brand is associated with patriotism in China, and Meng Wanzhou, the daughter of Ren, was welcomed back to Shenzhen in 2021 after being placed under house arrest in Canada on suspicion of bank fraud.
This was hailed by Chinese state media as a victory for China over the US. The corporation has had to diversify into new markets, such as automotive systems, to find new sources of income.
Read Also : US-China Tech War: ASML, Lam Research Pulls American Engineers From China Amid New Chip Restrictions
US, China Tech War History With Huawei
According to HBS, Huawei's tech war with the US dates back to as early as 2019. Back then, the Chinese smartphone manufacturer was getting ready to introduce its new flagship smartphone series, the Mate 30. The company had faced difficulties during the preceding 18 months after experiencing years of rapid expansion.
However, due to pressure from regulators who raised worries about the firm assisting Chinese surveillance, Huawei's planned smartphone launch in the US failed at the beginning of 2018. In the months that followed, a trade conflict between the US and China had started, with Huawei as its focal point.
After months of pressure and limitations from the US, Huawei found its supply chain for computer hardware and software under siege by mid-2019. Numerous governments threatened to forbid the company's 5G network equipment from entering their nations.
Ren Zhengfei, the founder of Huawei, and his management team had to devise a plan for not only the successful fall launch of the Mate 30 smartphone but also for the company's long-term survival, thus leading to the current tension in the US today.
Related Article : China's Chip Imports Decline as Tech War With US Continues
