On September 3, CNBC offered a rare positive report regarding embattled Chinese telecommunications firm Huawei. The corporation announced it had secured more than 50 contracts to establish 5G data networks across the world. As such, the conglomerate has outpaced rivals Nokia and Ericsson, which have respectively secured 45 and 24 5G infrastructure construction deals to date.
Success in Spite of Adversity
Given recent events, Huawei’s success in establishing itself as the leading provider of next-generation data services is remarkable. Since last year, the firm has found itself in a costly dispute with the United States government which has recently escalated.
In May, the Trump administration forbade U.S. companies from trading with the firm because it’s a threat to national security. Subsequently, the corporation’s American suppliers, including Intel and Google, ended their business relationships with the Sino telecom. Washington has also put pressure on its allies to keep Huawei out of its 5G network construction.
As a result, Huawei CEO Ren Zhengfei predicted his firm would lose $30 billion due to U.S. intervention through 2021.
Nevertheless, the firm’s low-priced equipment and services have allowed it to flourish internationally. The conglomerate is set to build 5G infrastructure throughout Asia and South America. Huawei has also made inroads in the West as it will be setting up next-generation data service for the United Kingdom, Switzerland, and Ireland.
Furthermore, U.S. criticism against the conglomerate has helped bolster handset its domestic revenues. In July, the firm reported revenues of $32.2 billion in the second quarter. Huawei’s brought in those record earnings due in large part to a 31 percent year-on-year increase in Chinese smartphone sales. The company’s retail partners fostered that profit surge by positioning the brand as a patriotic alternative to manufacturers like Apple.
Huawei Fights Back
Despite its 5G network success, Huawei is still hurting from the U.S. government’s campaign. Late last month, the Wall Street Journal reported American prosecutors are investigating the firm for engaging in an elaborate intellectual property (IP) theft scheme. When the story went live, the conglomerate had no response, but that changed on September 3.
On Tuesday, Huawei accused the U.S. government of attempting to disrupt its business using unethical means in a press release.
The firm alleges Washington deployed federal officers to “threaten, menace, coerce, entice and incite” its past and present workers to turn on the company. The Sino conglomerate also said the federal government has interfered in its business by denying staff visa requests, detaining its shipments, and using settled civil cases as the basis for new criminal investigations. Moreover, the organization claimed government officials have posed as its employees to facilitate the filing of new charges.
Besides, Huawei disputed the notion that its success was a result of stealing IP. “No company becomes a global leader in their field through theft,” noted the telecom.
The Wall Street Journal stated the corporation offered no proof of its various accusations. However, the publication confirmed at least three Huawei employees had been contacted by U.S. law enforcement agencies this year.
Furthermore, the corporation’s CFO Meng Wanzhou is under house arrest in Canada awaiting extradition to the United States. Last December, Canadian authorities arrested the executive on charges of money laundering, violation of U.S. sanctions, and IP theft.
As of this writing, the U.S. government did not respond to Huawei’s raft of accusations.