Jun 18, 2019 (China Knowledge) - As pressures by the Trump administration mounts on Huawei Technologies, the Chinese technology giant cuts its sales expectations for the next two years by USD 30 bln. Huawei is lowering its expected sales revenue in 2020 to roughly USD 100 bln.
The bitter trade war between China and U.S. has inadvertently caused a heavy toll on Huawei. Ren Zhengfei, Huawei’s founder and CEO is expecting fall in sales over the two years from 2018 during an interview on China Global Television Network (CGTN) on June 17, 2019.
"It didn’t occur to us that the Trump Administration would take such as wide range of measures to limit and restrict Huawei," said CEO Ren Zhengfei on CGTN. As a result, he will restructure Huawei and cut back its production scale in response to the constraints on supplies.
Ren Zhengfei remains optimistic about its smartphones business in China and is confident that it will remain strong. However, he is expecting its international smartphone shipments to fall by 40%.
Despite the setbacks faced by Huawei, Ren insisted that he will not sell or spin off a business, cut back its research and development spending. Huawei is planning to invest over USD 100 bln over the next five years in R&D on telecommunications infrastructure and abiding to European data protection standards.
Ren Zhengfei is upset with the situation brought about by politicians. Not only key U.S. suppliers were affected, but ties with universities and other institutions were also affected as well.
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