The Trump Administration’s sanctions appear to have hit the Chinese company Huawei hard. According to the questioned telecommunications company, its revenues have grown considerably slower so far in 2020.
Huawei Technologies Co Ltd, the world’s No. 2 telecoms company and smartphone manufacturer, reported on Monday that it reaped a meager 13.1 percent increase in revenue in the first half of the year, according to a Reuters report.
The company’s revenue, which is questioned because of its proximity to the Chinese People’s Liberation Army, rose 454 billion yuan ($64.90 billion) from January to June this year, compared to 401.3 billion yuan the previous year. However, the company’s growth rate dropped by 23.2 percent from the first half of 2019.
The report published by Huawei comes hours before UK officials order the removal of Huawei’s equipment from the European nation’s 5G telecoms networks, the Daily Mail notes.
For more than a year, the government of U.S. President Donald Trump has been warning London to reverse the installation of Huawei’s 5G network in Britain because, they say, there is strong evidence that the Chinese company poses a security risk.
In this context, British Justice Minister Robert Buckland said on Monday that his country will give “huge priority” to national security when considering Huawei’s role in the country’s 5G network.
In late June, the U.S. Defense Department determined that Huawei is owned or supported by the Chinese military, according to a BBC report.
Similarly, earlier this year three U.S. congressmen warned that working with Huawei is similar to working with the KGB during the Cold War.
The White House blacklisted Huawei in May 2019 by restricting sales to the company of United States–made goods, such as semiconductors.
U.S. officials announced new rules aimed at restricting Huawei’s ability to be self-sufficient in chips, an ability that is critical to its efforts to sell its 5G network equipment.