Huawei reports 13.1% rise in first-half revenue, as British PM mulls banning Huawei from 5G

Record ID: 1562125

  • Title: Huawei reports 13.1% rise in first-half revenue, as British PM mulls banning Huawei from 5G
  • Date: 13th July 2020
  • Summary: MATE XS ON DISPLAY
  • Embargoed: 27th July 2020 16:42
  • Keywords: Boris Johnson Britain set to ban Huawei from 5G Britain's National Security Council Huawei Huawei reports 13.1% rise in first-half revenue Huawei revenue reports NSC
  • Location: BARCELONA, SPAIN / LONDON, ENGLAND, UNITED KINGDOM
  • City: BARCELONA, SPAIN / LONDON, ENGLAND, UNITED KINGDOM
  • Country: Various
  • Topics: Company News Markets,Economic Events
  • Reuters ID: LVA003CMN7SST
  • Aspect Ratio: 16:9
  • Story Text: Huawei Technologies Co Ltd, the telecoms firm and No.2 smartphone maker, on Monday (July 13) reported a 13.1% rise in revenue in the first half of the year, showing slower growth as U.S. officials continue to pressure the company's suppliers and customers.
    The Chinese technology company posted the rise even as American officials have put increased pressure on the company's suppliers and customers.
    Revenue rose 13.1% to 454 billion yuan ($64.90 billion) in the first half of the year, compared to 401.3 billion yuan the year before. However, the company's growth rate was down from 23.2% in the first half 2019. Huawei said net profit margins were 9.2%, up from 8.7% in the first half 2019.
    Prime Minister Boris Johnson is set to ban Huawei from Britain's 5G network in a landmark decision that will anger Beijing but win plaudits from President Donald Trump as the United States grapples with China's rising economic and technological clout.
    The United States has pushed Johnson to reverse his January decision to grant Huawei a limited role in 5G, while London has been dismayed by a crackdown in Hong Kong and by the perception that China did not tell the whole truth over coronavirus.
    Britain's National Security Council (NSC), chaired by Johnson, will meet on Tuesday (July 14) to discuss Huawei and Media Secretary Oliver Dowden is expected to announce a decision to the House of Commons later in the day. It is unclear how far Johnson will go.
    Telecoms firms have already had to cap Huawei's role in 5G at 35% by 2023. Reducing it to zero over an additional two to fours years is now being discussed, although operators have warned that going too fast could delay key technology and disrupt services.
    In May, U.S. officials announced new rules aimed at constricting Huawei's ability to self-supply chips, an ability that is critical to its efforts to sell 5G networking gear.
    The United States says Huawei, the world's biggest producer of telecoms equipment, is an agent of the Chinese Communist State and cannot be trusted.
    Huawei denies it spies for China and has said the United States wants to frustrate its growth because no U.S. company could offer the same range of technology at a competitive price.
    (Production: Tara Oakes, Tanya Lezaic)
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