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Washington’s unilateral sanctions have bolstered the Chinese enterprise
Tuesday, April 4, 2023
By investing a quarter of its turnover in research, the Chinese company Huawei has managed to overcome the impact of the unilateral sanctions imposed by the United States government. This allowed Huawei to produce electronic components that were previously imported. The economic war launched by Washington against China has therefore strengthened Huawei, which continues to deploy itself by allowing the peoples of Africa in particular to have access to communication technologies which will accelerate the development of our continent.
China’s Huawei Technologies Co Ltd (HWT.UL) said it was in “non-crisis mode” as it recorded a slight increase in annual revenue, adding it was making progress in replacing components affected by the sanctions thanks to the billions it spends on research.
The tech conglomerate’s revenue rose 0.9%, in line with the company’s forecast, suggesting it has reached some level of stability. It posted net profit of 35.6 billion yuan ($5.18 billion), down about two-thirds from 2021, when earnings were helped by the sale of its mid-market smartphone business. of the Honor range. The drop, however, was still severe even compared to 2020 — a drop of 44%.
Three years of arbitrary detention in Canada for a Huawei executive
Senior executives at the leading supplier of equipment used in 5G telecommunications networks told a press conference how they were pushed into “a fatal impasse” and “fought their way out” after Washington had restricted its supply of chips and chip design tools sold by American companies.
“2022 is the year we came out of crisis mode. We resumed normal operations,” said CFO Meng Wanzhou, daughter of the company’s founder.
The US has said Huawei poses a security risk, which it denies. The tension with the United States saw Meng detained for three years in Canada on charges of selling equipment to Iran in violation of US sanctions.
Charges against Meng were dismissed and she returned to China in 2021.
Huawei campus in China. China has nearly halved its carbon intensity in 15 years while successfully overcoming poverty. This is of interest to all African countries.
Huawei now designs its electronic chips
R&D spending in the year rose 13.2% to 161.5 billion yuan ($23.50 billion), equivalent to a quarter of the company’s revenue. business.
The spending has helped Huawei replace components in its products that have been hit by U.S. trade sanctions, Meng said. Founder Ren Zhengfei told a university in February that they had replaced more than 13,000 parts.
Chairman Eric Xu said he sees areas such as green development as opportunities and is investing in 5.5th and 6th generation technologies, hoping to start rolling out 5.5G products in the future. by 2025.
Xu, when asked about recent comments on breakthroughs in electronic design automation (EDA) tools for chips produced at 14 nanometer technology and above, said the company has achieved this with its partners and that this meant that Huawei could use its own EDA tools to design chips.
Like Huawei, China’s semiconductor industry has been the target of U.S. export controls and the company will support the industry’s efforts to become more self-sufficient, he said, without providing details.
$25 billion in cash
Revenue for 2022 was 642.3 billion yuan. Although this represents a slight growth in 2021, it was still well below the record of 891.3 billion yuan recorded in 2019, when it was the world’s largest supplier of Android smartphones.
Revenue for the enterprise division soared 30%, revenue for its telecommunications business edged up 0.9% while sales for its consumer electronics business fell 11.9%.
Huawei’s asset-to-liability ratio was 58.9% and it had a net cash balance of 176.3 billion yuan, or more than $25 billion.
