By David Kirton
SHENZHEN, China (Reuters) – Huawei has identified 5G technology, cloud computing and energy efficiency as ways to strengthen its business, the company’s rotating chairman said on Tuesday.
In 2019, under the administration of Donald Trump, the United States put Huawei on an export ban list, putting the Chinese tech company’s once-powerful cellphone business under immense pressure. The US says Huawei is a security risk, which the company denies.
Huawei’s rotating chairman Ken Hu said on Tuesday the company faces an even scarier year than 2021 as geopolitics, the Covid-19 pandemic, rising commodity prices and floating exchange rates add to the company’s difficulties.
Speaking at an annual analyst meeting, Hu echoed the company’s comments a year ago that developing new, more resilient areas of business is essential to the company’s survival.
“We know in our hearts that Huawei still faces many challenges and we need to redouble our efforts,” he said, citing 5G, cloud computing and energy efficiency as growth areas for Huawei.
“Huawei was unfairly suppressed and sanctioned and we can’t get some advanced components,” he added.
Huawei’s revenue fell 29% last year to 636.8 billion yuan ($97.36 billion), while net profit rose 76% to 113.7 billion yuan, driven by the sale of the smartphone unit. low-cost Honor.
The company is under scrutiny regarding staying in Russia, as many Western companies withdrew from the country after Moscow’s invasion of Ukraine.
Huawei also faced internal pressure, as two of its British board members resigned in March after the company failed to condemn the war.
(By David Kirton)