Technology company Huawei has increased its turnover considerably in the first half of the year. The maker of, among other things, mobile telephones and network equipment is, however, concerned about the consequences of American sanctions. They could affect the pace of growth in the short term, the company warned.
Huawei’s sales increased by 23 percent to 403.1 billion yuan, around 52.6 billion euros. The company sold almost a quarter more mobile phones despite being banned in some countries.
Because of alleged security risks, a number of countries such as the United States, Japan, Australia and New Zealand do not purchase 5G network equipment from Huawei either. Turnover at the network equipment branch continued to grow, but considerably less rapidly.
In addition, American sanctions are imposed on the company, which means that it is no longer allowed to buy important components from American companies. They only started in May, so they had few consequences in the first half of the year. Huawei founder Ren Zhengfei said last month that the sanctions would cost his company $ 30 billion over the next two years. That would erase the growth of Huawei.
Abaigael Schlomski is an accomplished economist and financial journalist with over a decade of experience in the industry. He is a regular contributor to EconomicInform, where he provides in-depth analysis and expert commentary on the latest economic trends and events. With a keen understanding of the financial markets and a talent for breaking down complex economic concepts for a general audience, Maurice is a trusted and respected voice in the field.
