Huawei could raise $2bn in new finance, despite US pressure

Published: 9 January 2020 - 5:48 a.m.
By: CommsMEA staff writer

Chinese tech giant, Huawei, is reportedly considering a move to raise $2 billion in new finance, according to reports in the Chinese press.

A report in the South China Morning Post claims that Huawei will seek to raise the money through a mixture of new loans and a series of bond sales outside of China.

Huawei has established itself as the world’s biggest provider of 5G network equipment and has signed well over 60 5G launch deals with operators around the world – many of which are due to be executed in 2020.

Huawei has found itself a victim of the US’ bitter trade war with China, which has seen US President, Donald Trump, cast aspersions over the security of Huawei’s networks. Mr Trump claims that Huawei’s networks could be more easily hacked thank those of its competitors and that they could be used to commit acts of state sponsored espionage by the Chinese government.

Huawei strongly refutes these allegations.

Despite offering no proof to corroborate its claims, the US has been ratcheting up the pressure on its allies in Europe to exclude Huawei from their 5G rollouts. To date, the vast majority of European governments have resisted US pressure and continued to work with Huawei.

Huawei has strong relationships with a whole host of international banks, many of whom will be extremely keen to offer loans to the Chinese tech giant, who continues to post strong financial figures, despite the US campaign.

Huawei is expected to reinvest the money into its product development and research & development centres, to fast track the development of new products and services.

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