Huawei Technologies Co founder Ren Zhengfei expects US sanctions to curtail its revenue by about $30 billion over the coming two years, wiping out the networking giant’s growth by withholding critical American technology.
Sales at China’s largest technology company will likely remain stagnant at about $100 billion in 2019 and 2020, the billionaire said during a panel discussion, quantifying for the first time the hit from a plethora of Trump administration restrictions. Huawei however will aim to maintain its research and development budget and refrain from layoffs or major asset sales. The sale of a majority slice in Huawei Marine — announced in June — was a business decision that was unrelated to America’s campaign against the company, the 74-year-old chief executive officer added.
Ren has conceded that Trump administration curbs will cut into a two-year lead it’s painstakingly built over rivals like Ericsson AB and Nokia Oyj.