Huawei founder says to cut output by US$30 billion in 2019-20

Publish date: Mon, 17 Jun 2019, 04:36 PM
SHENZEN, China: The founder of Huawei said Monday the embattled Chinese telecom giant would slash production over the next two years as it grapples with a US push to isolate the company internationally.
 
"In the coming two years, the company will cut production by US$30 billion," Ren Zhengfei said during a panel discussion at corporate headquarters in Shenzhen.
 
Huawei earned just over US$100 billion in revenue in 2018.
 
But Ren, who compared Huawei to damaged aircraft, added that he expected the company to get back on its previous trajectory by 2021.
 
"In 2021, we will regain our vitality and (continue to) provide services to human society," he said.
 
Huawei has emerged as a key bone of contention in the wider China-US trade war that has seen tit-for-tat tariffs imposed on hundreds of billions of dollars worth of goods.
 
President Donald Trump's administration has essentially banned Huawei from the huge US market and barred American tech companies from supplying the Chinese company with vital components without permission from Washington.
 
Washington fears that systems built by Huawei, the world's leader in telecom equipment and the number two smartphone producer, could be used by China's government for espionage.
 
The Trump administration also is pressuring other countries to ban Huawei equipment from their networks, particularly in the coming rollout of super-fast 5G networks, a project in which Huawei had been expected to play a leading role.
 
The US campaign has already spurred a number of major technology companies, including major semi-conductor suppliers and brands such as Facebook and Google, to suspend cooperation with Huawei.
 
 - AFP
 
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stockmkt101

$30 billion over 2 years for technology independence from foreign suppliers? It's well worth the price!

2019-06-19 18:30

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