The politico-economic sanctions of the US government against Huawei still impact the annual balance sheet of the Chinese giant.
Despite the departure of Donald Trump and the inauguration of Joe Biden, Huawei is not out of the woods. One would think that the new American government would be more lenient towards the Chinese giant. In fact, the sanctions against it continue to impact its annual turnover. According to a forecast made official by CEO Guo Ping in his greetings to company employees, Huawei therefore estimates a loss of nearly 30% of its income over the year 2021.
A big blow for the company. If this is obviously not enough to bury it, Huawei thus predicts a turnover of “only” 634 billion yuan ($ 99.75 billion), while in 2020, the firm validated its tax balance sheet at 891.4 billion yuan, or just over 140 billion dollars. Even if it evokes a financial report “satisfactory”, Guo Ping believes, however, that 2022 is already on the way. “With its fair share of challenges”. A situation made particularly uncertain because of a “Unpredictable business environment, politicization of technology and a growing de-globalization movement” can we read in the internal letter reported by Reuters.
The consequences of the Trump administration?
As early as 2019, Donald Trump and his government had made Huawei an example of Sino-American relations, by imposing heavy trade restrictions on the company. Accused of using its products for political espionage on behalf of the Chinese government, the firm is now banned from Android, and must also evolve without several American technologies. A situation whose repercussions had extended well beyond American borders: in Europe, Huawei at the time approached to ensure the development of 5G infrastructure, was ultimately taken out of the equation.
Coupled with an unprecedented pandemic, Huawei has held a complicated position throughout the year. However, the company has confirmed that it wants pursue its efforts in the technological infrastructure market and smart products.