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Huawei urges US to drop ‘loser’s attitude’ as the carrier of business revenue slips

HONG KONG (Reuters) – China’s Huawei Technologies has called on Washington to be the “loser attitude” and once again rubbished AMERICAN allegations in the gear can be used by Beijing to spy, as the network business has weakened amid mounting global scrutiny.

An employee stands next to the logo of Huawei in Shenzhen, Guangdong province, China March 29, 2019. REUTERS/Tyrone Siu

“The U.S. government has a loser attitude. It wants to lubricate Huawei, because it can’t compete against Huawei,” Guo Ping, rotating chairman of the world’s largest manufacturer of telecommunications equipment and No. 3 maker of smartphones, said on Friday.

“I hope that the USA can adjust the attitude,” Guo said at a press conference that was attended by more than 100 journalists from all over the world.

The AMERICAN embassy in China declined to comment.

Huawei recorded a slower pace of earnings growth for 2018 if the network was the first decline in sales in two years, making a robust 45 percent jump in the smartphone unit.

Huawei’s outlook has come under a cloud over the past year with the United States voicing concerns that the equipment may be used for spying. Washington has also urged its allies to ban Huawei building of the next generation 5G mobile networks.

The latest blow to the company came on Thursday when Britain and scolded him for not to solve long-term security flaws in its mobile network equipment, and revealed new “major technical problems”.

For 2018, the Shenzen-based company reported a net profit of 59.3 billion yuan ($9 billion), an increase of 25 percent compared to a year ago, compared to 28 percent increase in 2017. The proceeds of its carrier business fell 1.3 percent to 294 billion yuan, which is the the fault on the telecommunications industry investment cycles.

However, the increase of the consumer business sales for a record 348.9 billion yuan, driven by the demand for the premium models of smartphones such as the P series and Mate series, helped the global sales of more than $100 billion for the first time.

The total turnover rose by almost 20 percent to about 721 billion yuan, marking the fastest pace of growth in two years.

The performance of the consumer, the business was in line with what Huawei highlighted in January, when it also said it may be the world’s best-selling smartphone vendor this year.

Guo said that he expects that all three business groups – consumer, the carrier and the enterprise – post double-digit growth this year, although he is not up to a certain number.

The company has previously said it was targeting total revenue of $125 billion this year, a record high.

“Moving forward, we will do everything to shake off the distractions of the outside, improving the management and making progress towards our strategic goals,” Guo said.

Huawei has “prepared some stocks for uncertainties” that has a reduction in the net cash position, Guo added, without giving all the details.

SPYING WOULD BE “SUICIDE”

To fight global concern about the gear, Huawei has launched an unprecedented media blitz by opening up its campus to the journalists, and parading his usually low-key, the company’s founder Ren Zhengfei, in front of the media.

It strengthens the campaign in the past few months after Meng Wanzhou, Huawei chief financial officer and Ren’s daughter, was arrested in Canada in December in the US request at the expense of the bank and wire fraud in violation of U.S. sanctions against Iran. She denies misconduct.

The company has said that the spying concerns are unfounded.

“Spying would be equal to suicide,” said Song Liuping, Huawei’s chief legal officer.

“We have not intended to commit suicide.”

Slideshow (4 Images)

Huawei derived 48.4% of the activities of the overseas markets in 2018, compared to 49.5 percent a year earlier.

The company is the fastest growing region of Europe, the Middle East and Africa with a growth of 24.3 percent, followed by America with a growth of 21.3 percent.

A top company said earlier this week that the AMERICAN campaign against Huawei had little impact on the sale and that it was unlikely many countries would listen to the AMERICAN call for a ban on the gear.

Reporting By Sijia Jiang and Anne Marie Roantree; Editing by with the ipad has Himani

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