Huawei, a Chinese telecom equipment vendor, also engaged in manufacturing smart electronics such as smartphones, has seen its revenues going down by almost 30% in 2021. The challenges of the company aren’t going to get any lesser or easier even in 2022. According to a Reuters report, Huawei’s rotating chairman, Guo Ping, sent a New Year letter to the employees on Friday where the company’s expected annual revenues mentioned was 634 billion yuan ($99.48 billion). Compared to 2020, it is a decline of almost 28.9% in revenues from 891.4 billion yuan.
Chairman Satisfied With Company Performance Despite Dipping Revenues
Ping mentioned in the letter that Huawei’s business performance in 2021 is satisfactory despite the fall in revenues. At the same time, the rotating chairman of the company said that 2022 would come with its fair share of challenges.
Ping noted that the politicisation of technology, an unpredictable business environment, and a growing de-globalisation movement all present serious challenges for Huawei.
Being a Chinese company, Huawei has had to face a lot of challenges in multiple parts of the world. It all started back in 2019 when the Trump administration imposed a trade ban on Huawei in the United States (U.S.), citing a threat to national security. Followed by this move from the U.S., other countries also started backing out on conducting business with Huawei.
Even the Indian government has indicated that it doesn’t want the presence of Chinese companies in the country for future generation networks. Huawei’s business in India in 2021 fell significantly. Huawei wasn’t even included in the ongoing 5G trials by the telcos. Despite playing a major role in the rollout of all the legacy networks, Huawei’s alleged ties with the Chinese government are posing a threat to the company’s business in the global markets. Even European countries are avoiding doing business with Chinese companies citing security threats.