Huawei, which has been facing a lot of heat from the Western market, especially the United States, is now facing a similar situation with one of the largest markets in the world and Asia’s third-largest economy — India.
According to the report from The Economic Times, Huawei Technologies has cut down its India revenue target for the on-going year by up to 50 percent. On top of it, the Chinese giant is also laying off more than half of its staff in the country.
The development comes amid growing anti-Chinese sentiments in the Indian market following the India-China border dispute about a month ago. Further, the government has also asked telecom firms to use locally-made equipment for 4G instead of Chinese.
As per the report adds that Huawei is now targeting $350-500 million in revenue from the Indian market for the year 2020. Previously, the company was aiming for around $700-800 million in revenue from India.
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The Chinese telecom equipment giant is also cutting around 60 to 70 percent of the staff in India. However, the report adds that people employed in Research & Development as well as Global Service Centre won’t be affected by this move.
Amid growing tensions with China, the Indian government has banned 59 Chinese applications in the country, including popular short-video social media platform TikTok. In response, China has alleged that the move is a violation of WTO policies.
Despite anti-China sentiments in India, Chinese smartphone brands dominate the Indian smartphone market. In Q2 2020, four out of the top five smartphone companies were Chinese, with Xiaomi at the lead position.
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