Chinese Huawei expects business back to normal as impact of ‎US sanctions recedes

Estimates of the Chinese giant Huawei Technologies Corporation indicated today, Friday, that its revenues for 2022 will remain unchanged from the previous year, and that the decline in sales due to US sanctions has stopped.

Although sales recorded only a marginal increase of 0.02 percent, Huawei’s rotating president, Eric Xu, expressed optimism in the company’s annual New Year’s message, in which he revealed the figure.

According to Reuters, Shaw wrote in the letter addressed to the employees and distributed to the media, “American restrictions have become the normal situation for us now, and business will return as usual.”

Revenue for the year is expected to be 636.9 billion yuan ($91.53 billion), according to Xu.

This represents a slight increase from 2021, when revenue reached 636.8 billion yuan and a decrease in sales of 30 percent year on year, as US sanctions took effect on the company.

Shi’s letter did not mention Huawei’s profits. The company usually discloses its full annual results in the first quarter of the following year

Revenues for 2022 are still well below the company’s record of $122 billion, which it set in 2019. At that time, the company was at the height of its brilliance as the best seller of Android smartphones globally.

Also in 2019, the administration of former US President Donald Trump imposed a trade embargo on Huawei, citing national security concerns, which prevented the company from using Google’s Android system in its new smartphones, along with other important American-origin technologies.

The sanctions have caused sales of its mobile devices to plummet. The company continues to generate revenue through its networking equipment and cloud computing divisions, and invests in electric vehicles and green technology.