Only ‘Slight’ Impact On Growth By US Ban, Says Huawei CEO Ren Zhengfei

The Chinese tech giant and the largest manufacturer of telecommunication equipment in the world Huawei Technologies Co would not be affected much by the ban put on it in the United States, said the company’s Chief Executive Officer and founder Ren Zhengfei according ot a report in Nikkei newspaper.

“Huawei’s growth may slow, but only slightly,” Ren told Japanese reporters at the telecommunications equipment maker’s headquarters in Shenzhen, China, according to the report.

This was the first official media statement issued by Huawei since the issuing of the executive order by US president Donald Trump that effectively banned Huawei from doing business in the US following the blacklisting of the company by the US Commerce Department by placing it on the so called “Entity List” on May 15.

Ren said that there can be a drop of 20 per cent in the revenue growth of the closely held Chinese company.

Along with Huawei, its Chinese competitor ZTE Corp has also been effectively restricted to do business by Trump administration through the presidential executive order. Both the companies are now banned from selling any of their equipment in the US while the blacklisting of Huawei by the US Commerce Department has effectively prevented the company doing any business with any other US firms.

A threat to national security is posed by Huawei and its affiliate companies, said US Commerce Secretary Wilbur Ross but added that the blacklisting of the companies is has noting to do with the ongoing negotiations on trade between the US and China.

Criticizing the US restrictions, Ren said: “We have not done anything that violates the law.”   “We will not change our management at the request of the US or accept monitoring, as ZTE has done,” he said, according to Nikkei report.

The ban imposed by the US on ZTE preventing the Chinese company from purchasing critical American technology was lifted last year following an undertaking by the company of making large changes in its board and management, agree to external monitoring of its activities and after a payment of more than $1 billion to the US in fines.

The report stated that Ren said that Huawei will be “fine” despite if it is banned from purchasing chips from its traditional US suppliers, because “we have already been preparing for this.” The possibility of producing 5G equipment in the US was however ruled out by him.

“Even if the US asks us to manufacture over there, we will not go,” he said.

Huawei was indicted by the US prosecutors in January over allegations of bank fraud to obtain embargoed U.S. goods and services in Iran and additionally, the company was also charged of shifting money out of Iran through the international banking system thereby defying a US ban on Iran.

Earlier in Decleber last year, Meng Wanzhou, the Chief Financial Officer and the daughter of the founder of Huawei was arrested in Canada at the behest of the US in relation with the indictment that was later unveiled in January. She has however maintained her innocence and is contesting an extradition case in Canada. Ren has previously said his daughter’s arrest was politically motivated.

(Adapted from SCMP.com)

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s