Huawei increases annual sales despite US sanctions
The company, based in Shenzhen in southern China, has been cut off from international supply chains and technologies since 2019 due to US sanctions; US companies are not allowed to supply Huawei with components such as chips. The US accuses Huawei of spying for the Chinese state. The company rejects this.
Hu wrote in his letter that hard work had allowed the company to survive. However, there are still "serious obstacles" to overcome.
Despite the sanctions, Huawei launched the Mate 60 smartphone in the summer. The company also remained the world's number one supplier of 5G mobile networks.
The USA is putting great pressure on its partners to exclude Huawei from the construction of their 5G networks. In June, the EU Commission declared that it saw Chinese telecommunications equipment suppliers such as Huawei as a security risk.
In Germany, according to a report in the Handelsblatt newspaper on Friday, there is a dispute in the federal government about how to deal with IT components from China. According to the report, Digital Minister Volker Wissing (FDP) is opposing Interior Minister Nancy Faeser's (SPD) demand to dismantle parts from manufacturers Huawei and ZTE. Wissing argues that he does not have any security policy assessments on Huawei. Faeser's office contradicts this assertion.
According to theHandelsblatt, a key issues paper from the Ministry of the Interior lists security risks for Germany resulting from the use of components from manufacturers Huawei and ZTE in public 5G mobile networks operated by Telekom, Vodafone and Telefónica. According to the report, the Ministry of the Interior is proposing an extensive ban on critical components from the Chinese manufacturers in question. Wissing told "Handelsblatt" that he was not aware of such a paper.
The head of Deutsche Telekom, Tim Höttges, warned in the Frankfurter Allgemeine Zeitung in October that Huawei components should be removed from the German 5G mobile network. This demand was naive and showed "a complete lack of understanding of the technical complexity". This would cost "an enormous amount" and set back the expansion of 5G technology and modernization, he said.
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- Despite the ongoing US sanctions, ZTE managed to increase its annual turnover in the USA, signifying resilience in the face of adversity.
- Deutsche Telekom's CEO, Tim Höttges, questioned the feasibility of removing Huawei components from the German 5G mobile network, stating it would lead to significant costs and setbacks.
- In a disagreement within the German federal government, Digital Minister Volker Wissing opposes Interior Minister Nancy Faeser's demand to dismantle parts from Huawei and ZTE, citing lack of security policy assessments.
- Huawei's annual sales have obviously increased, even though US companies have been prohibited from supplying the Chinese tech giant with crucial components such as chips since 2019, due to US sanctions.
- The USA is emphasizing the exclusion of Huawei from its partners' 5G network construction due to security concerns, echoing the EU Commission's views on Chinese telecommunications equipment suppliers as posing a risk.
- Nancy Faeser's office contests Volker Wissing's claim, asserting that security policy assessments on Huawei are indeed available, in light of the key issues paper from the Ministry of the Interior listing potential security risks for Germany resulting from the use of Huawei and ZTE components in public 5G mobile networks.
Source: www.stern.de
