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China’s Huawei sees little impact on the sales of AMERICAN broadside

SHENZHEN/HONG KONG (reuters) – The U.S. campaign against the chinese Huawei has little impact on the sales of the company and it is unlikely that many countries follow the United States in a ban on Huawei from building the next generation of mobile networks, the rotating President Eric Xu said.

FILE PHOTO: Eric Xu, CEO of Huawei, addresses the media at the Cebit, the world’s largest computer and software trade fair in Hanover, Germany, March 14, 2016. REUTERS/Nigel Treblin

“Recently we have seen a large number of countries make their own decisions,” Xu said during an interview at Huawei Technologies headquarters in Shenzhen.

While Australia has banned Huawei of 5G networks over security concerns, eu-countries, such as Germany and France have indicated that they are likely to ignore the US call to close on the telecom giant.

“Perhaps it’s just Australia,” Xu told Reuters reporters after a tour of the campus.

Xu confirmed Huawei’s sales jumped 36 percent over the first two months of the year 2019 and 15 percent of the annual peak of $125 billion, underlining strength in the smartphone business and sale of computer and communication networks.

Huawei has been facing with the assembly of research, led by the United States, in the midst of the cares of the equipment may be used by Beijing for spying. The company, however, says the objections are unfounded.

Xu said he does not expect the United States to bolster its attack on the company by blocking the sale of AMERICAN components Huawei, a movement that almost his compatriot ZTE Corp out of business, last year before the AMERICAN President Donald Trump lifted the ban.

Huawei is the world’s third-largest buyer of computer chips, many of which are of AMERICAN companies, and a sales ban would disrupt the global tech industry, Xu said.

Xu’s remarks come at a time when Huawei has sued the U.S. government over a law that restricts access to the market.

In Canada, lawyers for Huawei CFO Meng Wanzhou, the daughter of founder Ren Zhengfei, have sued the government over its Dec. 1 arrest in command of the United States. She was charged with bank and wire fraud and to violate U.S. sanctions against Iran.

CAMPUS TOUR

Huawei, a private company that offers little information about the internal management, has in recent months offered interviews with the media and journalists invited to tour the facilities as part of a counter-attack against the accusations of espionage.

Reuters reporters were invited on Monday to peruse the files in Huawei’s “share registry room” where it keeps a register of tens of thousands of workers-shareholders.

The ownership structure gives the Chinese government has no interest in the company and that the 74-year-old founder Ren is the owner of slightly more than 1 percent of the company.

Many of the global review of Huawei stems from Ren background with China’s People’s Liberation Army, where he was a civil engineer for almost a decade, until his departure in 1983 after the construction of the communication network.

Reuters also toured Huawei’s new campus in Dongguan, near Shenzhen, which boasts buildings on the example of European cities, including Paris and Heidelberg, joined by a special train imported from Switzerland.

However, there was little activity on the campus, which is designed for the house of 18,000 employees, save a few black swans flitting over a lake.

In contrast, another Huawei facility in the vicinity bustled with workers assembling smartphones on automated production lines.

NEW GROWTH

Huawei’s growth is primarily driven by its booming smartphone business and sale of computer and communication networks of the government and business customers.

Future growth will also “primary” of this, Xu said, with a sale of equipment by the telecom providers is growing in single digits.

Huawei is the world’s largest producer of telecommunication equipment and the second-largest maker of smartphones.

On Huawei’s semiconductor activities, HiSilicon, Xu said the unit produced more than $7.5 billion worth of chips last year. That compares with an estimated $21 billion chips that Huawei acquired from external suppliers.

HiSilicon produces chip designs for Huawei equipment especially, with the production handled by the so-called “foundry” companies such as taiwan’s TSMC.

Slideshow (20 Images)

They sell chips to others for use in video cameras, tv set-top boxes, and a number of low-cost internet-connected devices, Xu said.

Huawei will report its 2018 financial results at a press conference on Friday, more than a hundred journalists are expected, much more than in past years.

“The United States must take a large part of the credit for creating ads for Huawei,” Xu joked.

Reporting by Jonathan Weber in Shenzen and Sijia Jiang in Hong Kong; Editing by with the ipad has Himani

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