Huawei's founder and CEO Ren Zhengfei said the impact of a <a href="https://www.wionews.com/world/huawei-delays-global-launch-of-foldable-phone-by-three-months-227120">US ban on the Chinese company</a> was more severe than expected and warned that revenue would dip to around $100 billion this year and the next.

This is the first time that Huawei has quantified the impact of the US action against the company and Ren's downbeat assessment comes after weeks of defiant comments from company executives who maintained Huawei was technologically self-sufficient.

Huawei had not expected that US determination to "crack" the company would be "so strong and so pervasive", Ren said, speaking at the company's Shenzhen headquarters on Monday.

The United States has put Huawei on a blacklist that effectively bans American companies from doing business with the Chinese firm, alleging that Huawei's products could allow China to spy on US communications.

The ban has forced companies, including Alphabet Inc's Google and British chip designer ARM, to limit or cease their relationships with Huawei.

Huawei's international smartphone shipments will drop 40%, Ren said on Monday, without specifying a period. Bloomberg reported on Sunday that the tech giant was preparing for a 40% to 60% decline in international smartphone shipments.

Huawei had reported revenue of $104.16 billion&nbsp;last year and said a few months ago it expected revenue this year to jump to $125 billion.

"We did not expect they would attack us on so many aspects," Ren said but added that he expects a revival in the business in 2021.

"We cannot get components supply, cannot participate in many international organisations, cannot work closely with many universities, cannot use anything with US components, and cannot even establish connection with networks that use such components."

Ren, however, said Huawei will not cut research and development spending despite the expected hit to the company's finances and would not have large-scale layoffs.

Huawei's founder and CEO Ren Zhengfei said the impact of a US ban on the Chinese company was more severe than expected and warned that revenue would dip to around $100 billion this year and the next.

Huawei's founder and CEO Ren Zhengfei said the impact of a US ban on the Chinese company was more severe than expected and warned that revenue would dip to around $100 billion this year and the next. This is the first time that Huawei has quantified the impact of the US action against the company and Ren's downbeat assessment comes after weeks of defiant comments from company executives who maintained Huawei was technologically self-sufficient. Huawei had not expected that US determination to "crack" the company would be "so strong and so pervasive", Ren said, speaking at the company's Shenzhen headquarters on Monday. The United States has put Huawei on a blacklist that effectively bans American companies from doing business with the Chinese firm, alleging that Huawei's products could allow China to spy on US communications. The ban has forced companies, including Alphabet Inc's Google and British chip designer ARM, to limit or cease their relationships with Huawei. Huawei's international smartphone shipments will drop 40%, Ren said on Monday, without specifying a period. Bloomberg reported on Sunday that the tech giant was preparing for a 40% to 60% decline in international smartphone shipments. Huawei had reported revenue of $104.16 billion last year and said a few months ago it expected revenue this year to jump to $125 billion. "We did not expect they would attack us on so many aspects," Ren said but added that he expects a revival in the business in 2021. "We cannot get components supply, cannot participate in many international organisations, cannot work closely with many universities, cannot use anything with US components, and cannot even establish connection with networks that use such components." Ren, however, said Huawei will not cut research and development spending despite the expected hit to the company's finances and would not have large-scale layoffs.

Huawei CEO says underestimated impact of US ban, sees revenue dip

Huawei Technologies unveiled an open lab for next-generation 5G wireless network in South Korea on Thursday but kept the launch low-key given its recent blacklisting by the United States, a key security ally of the Asian nation.

The Chinese tech giant, the world's top producer of telecoms equipment, said it planned to invest about $5 million in the lab in the Junggu district of Seoul. It did not provide any more details on the location and did not invite media to the launch.

"Based on the philosophy of "In Korea and for Korea" and the strength of its own 5G network, Huawei will build a 5G ecosystem through cooperation with a number of South Korean ICT companies and especially small-and-medium enterprises," Huawei's Korea office said in a statement.

The event was, however, overshadowed by the US&nbsp;decision earlier this month to ban American tech and telecom firms from doing business with Huawei. Washington has also been urging its allies to bar the Chinese company from their 5G networks.

Huawei had initially considered inviting the press to the launch in South Korea, but after the US&nbsp;ban it decided to keep the event low-key, a person with knowledge of the matter said.

"Huawei wanted to promote the launch to as many Korean small-and-medium enterprises as possible, but it decided to keep the press out after the ban to avoid any damage to its Korean partners in case they are shown in media," the person said, declining to be named due to the sensitivity of the matter.

Huawei said the heads of South Korean enterprises attended the event, but did not disclose any names.

The move underlines Huawei's commitment to South Korea from where it purchases components such as chips and screens.

The US&nbsp;campaign against Huawei, and the broader US-China trade war, have landed export-driven South Korea in a familiar bind, caught between its crucial security ally and biggest trading partner.

The lab in South Korea is Huawei's first open 5G services development centre in the world that will allow other companies to test their platforms, according to the company.

South Korea rolled out 5G services in April, hoping the next-generation wireless technology will spur breakthrough in fields such as autonomous cars.

Currently, Huawei provides its 5G network equipment for a small South Korean carrier LG Uplus. LG Uplus has said it does not plan to remove Huawei gear, but promised to step up security checks.

The two bigger carriers, SK Telecom and KT, do not use Huawei gear.

Huawei Technologies unveiled an open lab for next-generation 5G wireless network in South Korea on Thursday but kept the launch low-key given its recent blacklisting by the United States, a key security ally of the Asian nation.

Huawei Technologies unveiled an open lab for next-generation 5G wireless network in South Korea on Thursday but kept the launch low-key given its recent blacklisting by the United States, a key security ally of the Asian nation. The Chinese tech giant, the world's top producer of telecoms equipment, said it planned to invest about $5 million in the lab in the Junggu district of Seoul. It did not provide any more details on the location and did not invite media to the launch. "Based on the philosophy of "In Korea and for Korea" and the strength of its own 5G network, Huawei will build a 5G ecosystem through cooperation with a number of South Korean ICT companies and especially small-and-medium enterprises," Huawei's Korea office said in a statement. The event was, however, overshadowed by the US decision earlier this month to ban American tech and telecom firms from doing business with Huawei. Washington has also been urging its allies to bar the Chinese company from their 5G networks. Huawei had initially considered inviting the press to the launch in South Korea, but after the US ban it decided to keep the event low-key, a person with knowledge of the matter said. "Huawei wanted to promote the launch to as many Korean small-and-medium enterprises as possible, but it decided to keep the press out after the ban to avoid any damage to its Korean partners in case they are shown in media," the person said, declining to be named due to the sensitivity of the matter. Huawei said the heads of South Korean enterprises attended the event, but did not disclose any names. The move underlines Huawei's commitment to South Korea from where it purchases components such as chips and screens. The US campaign against Huawei, and the broader US-China trade war, have landed export-driven South Korea in a familiar bind, caught between its crucial security ally and biggest trading partner. The lab in South Korea is Huawei's first open 5G services development centre in the world that will allow other companies to test their platforms, according to the company. South Korea rolled out 5G services in April, hoping the next-generation wireless technology will spur breakthrough in fields such as autonomous cars. Currently, Huawei provides its 5G network equipment for a small South Korean carrier LG Uplus. LG Uplus has said it does not plan to remove Huawei gear, but promised to step up security checks. The two bigger carriers, SK Telecom and KT, do not use Huawei gear.

Huawei launches 5G lab in South Korea, but keeps event low-key after US ban

The Trump administration on Thursday officially added <a href="https://www.wionews.com/world/us-should-stop-incorrect-action-on-huawei-to-avoid-additional-harm-to-china-us-economic-and-trade-relations-china-219157">China's Huawei Technologies Co Ltd</a> to a trade blacklist, immediately enacting restrictions that will make it extremely difficult for the telecom giant to do business with US companies.&nbsp;

The Commerce Department issued a rule, promised on Wednesday, putting <a href="https://www.wionews.com/world/unreasonable-restrictions-infringe-on-its-rights-huawei-responds-to-us-ban-219064">Huawei </a>and 68 affiliates in more than two dozen countries on its so-called Entity List, a move that bans the company from buying parts and components from American firms without US&nbsp;government approval.

Obtaining such approval will not be easy. The US&nbsp;government will review license applications under a "policy of presumption of denial," according to a posting on the Federal Register.&nbsp;

The order takes effect immediately, a Commerce Department spokesman said, although it will not be formally published in the Federal Register until Tuesday.&nbsp;

Huawei, the world`s largest telecommunications equipment maker, did not immediately respond to a request for comment.

The action comes as the world`s two largest economies ratchet up tariffs in a battle over what US officials call China`s unfair trade practices.&nbsp;

In a one-two punch, the order came a day after President Donald Trump signed an executive order declaring a national emergency and barring US companies from using telecommunications equipment made by firms posing a national security risk.

The United States believes Huawei’s smartphones and network equipment could be used by China to spy on Americans, allegations the company has repeatedly denied.

The Commerce Department first gave notice on Wednesday that it was adding Huawei to the list.

Huawei has been "involved in activities contrary to the national security or foreign policy interests of the United States," the order says.&nbsp;

As an example, the order cites a criminal case pending against the company in federal court in Brooklyn, New York, over allegations Huawei violated US sanctions against Iran. Huawei has pleaded not guilty in the case.

It notes that the indictment also accuses Huawei of ”deceptive and obstructive acts."

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Members of Congress and administration officials said the move would make it difficult for Huawei to sell many products because of its dependence on US&nbsp;suppliers.

Collateral damage?

Washington lawyer Douglas Jacobson, a trade expert, said there would be collateral impact on the US companies that sell to Huawei.&nbsp;

"While the intent is to punish Huawei, ultimately US&nbsp;companies are also being penalized," Jacobson said.

Analysts cut price targets on several microchip companies, including Xilinx Inc. Shares of Xilinx closed down 7.3 per cent, while those of rival chipmaker Qualcomm Inc fell 4 per cent.

Given the order, the likelihood that Commerce will grant licenses to allow sales is negligible, Jacobson said.

Still, history shows the government could offer reprieves. In 2016, Huawei`s smaller rival ZTE Corp was added to the entity list over allegations it organised an elaborate scheme to hide its re-export of US&nbsp;items to sanctioned countries.&nbsp;

US companies were prohibited from selling parts and components to ZTE for about two weeks, before the Commerce Department issued a series of temporary general licenses that allowed the company to continue to do business with US&nbsp;suppliers until it agreed to a plea deal a year later.

The saga of ZTE did not end there. In April 2018, the Commerce Department slapped a ban on American companies selling components to ZTE after accusing it of breaking an agreement, leading ZTE to cease major operations until it struck a new deal last summer.

The Trump administration on Thursday officially added China's Huawei Technologies Co Ltd to a trade blacklist, immediately enacting restrictions that will make it extremely difficult for the telecom giant to do business with US companies.

The Trump administration on Thursday officially added China's Huawei Technologies Co Ltd to a trade blacklist, immediately enacting restrictions that will make it extremely difficult for the telecom giant to do business with US companies. The Commerce Department issued a rule, promised on Wednesday, putting Huawei and 68 affiliates in more than two dozen countries on its so-called Entity List, a move that bans the company from buying parts and components from American firms without US government approval. Obtaining such approval will not be easy. The US government will review license applications under a "policy of presumption of denial," according to a posting on the Federal Register. The order takes effect immediately, a Commerce Department spokesman said, although it will not be formally published in the Federal Register until Tuesday. Huawei, the world`s largest telecommunications equipment maker, did not immediately respond to a request for comment. The action comes as the world`s two largest economies ratchet up tariffs in a battle over what US officials call China`s unfair trade practices. In a one-two punch, the order came a day after President Donald Trump signed an executive order declaring a national emergency and barring US companies from using telecommunications equipment made by firms posing a national security risk. The United States believes Huawei’s smartphones and network equipment could be used by China to spy on Americans, allegations the company has repeatedly denied. The Commerce Department first gave notice on Wednesday that it was adding Huawei to the list. Huawei has been "involved in activities contrary to the national security or foreign policy interests of the United States," the order says. As an example, the order cites a criminal case pending against the company in federal court in Brooklyn, New York, over allegations Huawei violated US sanctions against Iran. Huawei has pleaded not guilty in the case. It notes that the indictment also accuses Huawei of ”deceptive and obstructive acts." × Members of Congress and administration officials said the move would make it difficult for Huawei to sell many products because of its dependence on US suppliers. Collateral damage? Washington lawyer Douglas Jacobson, a trade expert, said there would be collateral impact on the US companies that sell to Huawei. "While the intent is to punish Huawei, ultimately US companies are also being penalized," Jacobson said. Analysts cut price targets on several microchip companies, including Xilinx Inc. Shares of Xilinx closed down 7.3 per cent, while those of rival chipmaker Qualcomm Inc fell 4 per cent. Given the order, the likelihood that Commerce will grant licenses to allow sales is negligible, Jacobson said. Still, history shows the government could offer reprieves. In 2016, Huawei`s smaller rival ZTE Corp was added to the entity list over allegations it organised an elaborate scheme to hide its re-export of US items to sanctioned countries. US companies were prohibited from selling parts and components to ZTE for about two weeks, before the Commerce Department issued a series of temporary general licenses that allowed the company to continue to do business with US suppliers until it agreed to a plea deal a year later. The saga of ZTE did not end there. In April 2018, the Commerce Department slapped a ban on American companies selling components to ZTE after accusing it of breaking an agreement, leading ZTE to cease major operations until it struck a new deal last summer.

China's Huawei restricted from using US suppliers

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Huawei CEO says underestimated impact of US ban, sees revenue dip

Huawei launches 5G lab in South Korea, but keeps event low-key after US ban

China's Huawei restricted from using US suppliers