Huawei's life span under sanctions

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Huawei's life expectancy under sanctions

Huawei will be able to operate in the current environment for at least three years. This is reported by the South China Morning Post.

The journalists of the publication refer to the statement of the founder of Huawei Ren Zhengfei. He said that the company is under sanctions, but it can work normally for at least three years, maximum five years. The entrepreneur explained that by the “normal operation” of the enterprise, he understands the preservation of the structure of the corporation and the timely payment of salaries to employees. Zheng Zhengfei admitted that hundreds of Huawei employees have volunteered to accept the demotion in order to save money for the company, “This shows that we have a very good team.”

SCMP also referred to Will Wong, an analyst at IDC research firm, who assessed Huawei's lifespan and the likelihood of selling a portion of the business. Wong noted that the sale of the flagship divisions of Mate and P will not solve the company's problems, but indicated the likelihood of getting rid of the assets of the company. “This opportunity will be used by Huawei only as a last resort,” the expert emphasized.

The IDC specialist admitted that the sale of a well-performing business line to Huawei will not only not solve the problems, but will also lead to the loss of the main source of income. “The Mate and P brands, as well as the HiSilicon line of chips, are the pillars of the corporation's strength and credibility,” concluded Will Wong.

In November, Ren Zhengfei addressed Huawei employees, where he said that the US intends to kill the company with its sanctions. “Faced with a new wave of US attacks, we finally realized that American officials were not trying to fix us. They wanted to kill us, ”said the businessman.

Information that Huawei is negotiating the sale of its flagship smartphone business came to Reuters on January 25. According to sources, the company intends to get rid of the Mate and P lines and focus on the production of budget phones. Huawei has been under sanctions since May 2019.

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