Earlier this year, the U.S Commerce Department designated Huawei to a blacklist which enforced all American companies to end trade relations with the Chinese coportation. The ban was based on allegations that the networking equipment developed by Huawei has hidden back doors which can be used to steal sensitive user data when compelled by the Chinese government. Even though Huawei has not been proven guilty, however, if this turns out true, these equipment could pose a serious threat to national security claims the U.S.
Morevover, the U.S has been asking its allies to not purchase equipment from the company otherwise it would punish them in some manner. Clearly, this move has had a negative impact on Huawei’s smartphone business which despite running Android do not support Google services.
Surprisingly, Huawei’s aggregate revenue jumped 24.4% in first three quarters of 2019 when compared to last year. Besides, Huawei CEO Ren Zhengfei has made yet another unanticipated statment that the “the U.S ban has helped the company positively”. He explained that Huawei employee’s who are afraid of the company’s death, have started working even harder and their efforts are the reason that company managed to increase revenue despite tough times.
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Falling in line with his current statement, Huawei CEO had previously said that the 90 day window provided by the U.S “doesn’t make much sense, we are ready.”. This means that Huawei has accepted that the ban imposed on it is unlikely to be lifted in the future. Henceforth, it will reiterate its business strategies and product portfolios to continue growth and render the ban irrelevant.
As we have previously said multiple times, Huawei is dealing with this tricky situation in a bold and postive manner which supposedly is the only way out.
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