Huawei to see ‘serious challenges’ in 2022 amid tech policy

US sanctions have hit Huawei hard, and the company has warned it will face “serious challenges” in 2022 amid the “politicization of technology” and further “de-globalization.”

The Chinese conglomerate expects 634 billion yuan ($ 99.45 billion) in revenue in 2021, a decrease of 28.88 from 891.4 billion yuan in 2020.

In a New Year’s letter to employees, Huawei’s rotating chairman Guo Ping said its carrier business had remained “stable” and its business unit had grown.

“An unpredictable business environment, the politicization of technology and a growing de-globalization movement all present serious challenges,” Ping said.

“In this context, we must stick to our strategy and respond rationally to external forces that are beyond our control,” he added.

US President Joe Biden signed a law in November that banned Chinese tech companies like Huawei and ZTE from obtaining approval for licensing of network equipment in the country.

Last year, the U.S. Federal Communications Commission (FCC) named Huawei and ZTE as national security threats to communications networks, making it difficult for U.S. companies to purchase equipment.

Ping said Huawei will continue to focus on infrastructure and smart devices, and will seek to respond to customer needs faster with shorter “management chains”. This involved creating “integrated teams” and “domain-specific subsidiaries,” ZDNet reports.

He said that in 2022, Huawei would seek to streamline its business decision-making processes by giving more autonomy to local offices.

He added that Huawei would increase its investment in HarmonyOS and EulerOS.

EulerOS is touted as Huawei’s infrastructure platform that supports cloud computing and on-premises services. It works on the Huawei version of the Linux operating system.

HarmonyOS currently supports more than 220 million Huawei devices, and more than 100 million devices developed by third-party vendors currently run on HarmonyOS, according to Huawei.

FCC Commissioner Brendan Carr said, “Once we determine that Huawei or other equipment poses an unacceptable risk to national security, it makes no sense to allow the purchase and inclusion of this same equipment in our communication networks as long as federal dollars are not involved. The presence of these insecure devices in our networks is the threat, not the source of funding used to purchase them ”.


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(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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