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Huawei reports 30% revenue growth despite best efforts by US to derail Chinese tech juggernaut

Huawei reports 30% revenue growth despite best efforts by US to derail Chinese tech juggernaut
Chinese telecom giant Huawei recorded better than expected revenue growth in the first half of 2019, up 30 percent year-on-year. The strong results come despite the Chinese firm being put on Washington’s trade blacklist.

The company’s revenue jumped almost 40 percent in the first quarter of the year compared with the same period of 2018 – to 180 billion Chinese yuan ($26 billion).

Huawei announced last week that it signed 50 5G commercial contracts, with 28 coming from mobile operators in Europe. The company’s rotating chairman Ken Hu said in April he anticipated that the faster-than-expected rollout of 5G networks would fuel double-digit growth for its carrier division in 2019.

Also on rt.com Huawei dominates global race to 5G, inking over 50 contracts despite US crackdown

Huawei’s founder and CEO Ren Zhengfei warned in June that various US restrictions would take $30 billion off its top-line over the next two years. He said that revenue was expected to decline to about $100 billion this year.

Since 2018, the Shenzhen-based firm has faced pressure from the United States while being accused by Washington of spying for the Chinese government. Both Beijing and Huawei deny the charge. Huawei was barred from doing business with American companies that supply it with necessary parts and technology.

The Trump administration has also been pressing allies to ban Huawei from 5G rollouts. The pressure has eased recently, with Washington having relaxed sanctions on the company.

Some countries like Australia and Japan have barred Huawei, while others, including India, are yet to decide whether to permit its 5G rollouts. The UK and Spain have already launched 5G commercial networks powered by Huawei base stations. This month, Brazil said it will not stop the Chinese technology company from operating within its borders.

Also on rt.com Huawei lays off 70% of American research unit staff amid ongoing US crackdown on Chinese firm

In June, Huawei helped to launch the 5G commercial network in Saudi Arabia. It has also stepped into the Russian market, announcing an agreement with one of Russia’s leading internet and mobile providers, MTS, to develop 5G networks. The Chinese giant has also approached several Russian tech firms to create joint ventures and use their technology.

For more stories on economy & finance visit RT's business section

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