Chinese tech giant boosted its spending with US firms last year, despite being placed on a White House blacklist prohibiting it from doing business with US companies, according to a senior Huawei official.
Huawei’s chairman, Eric Xu, told reporters from the Financial Times that Huawei spent $18.7 billion with US firms in 2019, up from $11 billion in 2018.
Huawei was placed on the US’ banned entities list in May 2018, effectively prohibiting US firms from doing business with it.
The US also lobbied its allies in Western Europe to ban Huawei from their domestic 5G rollout plans. While these requests were largely ignored in Europe, many European governments did impose certain restrictions on Huawei.
Xu acknowledged that the US’ campaign had had a negative impact on the company’s financials for the year, with Huawei missing its projected revenues for the year by $12 billion, posting full year revenues of $123 billion when it had aspired to $135 billion.
Xu warned that the US’ campaign against Huawei could have ramifications for US firms further down the line.
“The Chinese government will not just stand by and watch Huawei be slaughtered. I believe it would take countermeasures. Why would the Chinese government not use similar cyber security concerns to ban the use of US 5G chipsets… in the Chinese market,” said Huawei chairman, Eric Xu.
Huawei chairman warns US that China will not allow his company to be ‘slaughtered’
Published: 31 March 2020 - 12:44 p.m.