Huawei boss Kuo Pching sent a New Year’s letter to the company’s employees, according to which, in addition to the decline in sales for 2021, he also anticipates problems for the company in the coming year.
According to the document, Huawei estimates its annual turnover at 634 billion yuan (about 2.2 trillion CZK). This corresponds to a decrease of 28.9 percent from 891.4 billion yuan in the previous year, writes Reuters.
According to the letter, the company continues to face major challenges such as “unpredictable business environments, politicization of the technology sector and growing pressures to deglobalize”.
In addition to the US sanctions, Huawei’s sales were also negatively impacted by declining demand related to the Covid-19 pandemic. “We have to stick to our strategy and react rationally to external forces that are beyond our control,” said Kuo Pching.
Last year, the government of former US President Donald Trump put Huawei on the black business list. This restricted the company’s access to key American technologies, which had a major impact on its cell phone activities. Last November the company did Huawei Honor sold the cheap phones division due to US sanctions.
The US accuses Huawei of stealing technology and suspects the Chinese government. But Huawei has long denied this.