The US fears that the Beijing government will gain access to sensitive data - and has imposed trade restrictions on Huawei. Nevertheless, the Chinese technology group was able to increase its sales significantly in the first nine months of 2019. The revenue would have increased by almost 25 percent to 611 billion yuan (78.3 billion euros), said the world's largest network equipment supplier.
In the third quarter, they even improved by 27 percent. As a reason, Huawei called the growing demand for its smartphones. So far, 185 million devices have been sold, which would mean an increase of 29 percent. However, according to experts, the strong numbers are driven by the sale of devices that were introduced before the US ban. The long-term prospects, however, are bad.
US President Donald Trump blacklisted Huawei in mid-May for fear of espionage. As a result, the Group will no longer be able to receive contracts for telecom equipment to build the new 5G mobile communications standard in the United States and will not purchase components from US companies without specific permission.
Huawei praises Germany's open door
The US trade sanctions had sparked patriotic sentiment among the Chinese. Supported by expressions of solidarity in the social networks, Huawei sold its devices increasingly in the home market. Huawei rejects the spy allegations that US officials have so far failed to provide tangible evidence of a backdoor in China hardware.
Huawei has also responded positively to the signal from Germany, not to exclude a provider from the expansion of the German 5G network. The safety-critical catalog creates a level playing field for all providers, a spokesman for the dpa news agency said. "This fact-based approach is exemplary in addressing global cybersecurity challenges." It is good that the door remains open, a high Huawei staff was relieved.
Apart from the US, however, the EU Commission recently warned against allowing companies such as Huawei to participate in the mobile communications infrastructure. Under the new German rules, suppliers must provide a statement of trustworthiness and assure that they do not forward confidential information abroad. A central role is played by the Federal Office for Information Security (BSI), which checks the components used. At the end of the year, the regulations, which are also controversial in Germany, are to be resolved.
However, the trade war between the US and China not only affects the 5G infrastructure business, but also hampers the smartphone business. Huawei had worked its way up to second place in the smartphone market behind Samsung in recent years, overtaking iPhone maker Apple.
According to the specifications of the US government, new models such as the Mate 30 Pro may no longer be delivered with the services of Internet giant Google, which is considered indispensable, at least for many users in Western countries. Huawei's top management is hoping for a comprehensive deal between Washington and Beijing. The last partial agreement reached left this point open.
