Huawei Technologies is shifting its focus on emerging markets to expand its presence outside of China. The company’s overseas operations once accounted for around 70 percent of its total revenue, which took a significant hit due to various sanctions from the US.
Earlier this year, the Chinese tech giant helped build a data center in Senegal. This site cost 70 million EUR (roughly 83 million US Dollars) and was built through a load from the Chinese government and telecom infrastructure from Huawei (Via NikkeiAsia). The company’s focus on these emerging markets arrives as the US has urged various nations to exclude the brand from their fifth generation of wireless networks (5G). The US had cited national security concerns against the company, especially to governments in the West like the UK and certain European nations.
Despite this, Huawei still has a strong presence in the emerging markets in Africa and the Middle Eastern regions. As of right now, the equipment made by the company is around 20 to 30 percent more affordable than those made by its European competitors like Ericsson and Nokia. Furthermore, the telecom equipment maker has also not given up on expanding its presence in developed nations, although, it is focusing more on emerging markets.
For those unaware, Huawei is a major player in the telecom industry and supplies its networking gear to many countries across the globe. As of 2020, it is estimated that the company has started smart city projects in over 700 cities in more than 40 nations. This includes places such as Dubai, in which the company was involved with the construction of 5G infrastructure. Meanwhile, the US is working on pressuring more developed nations like the UK, with Japan, and Australia also excluding Huawei from their 5G infrastructure.
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