Huawei vows to 'shake off' pressure as network business takes a hit

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Huawei vows to 'shake off' pressure as network business takes a hit.

Chinese telecom giant Huawei vowed on Friday to"shake off outside distractions" as it announced that its telecom infrastructure business contracted slightly in 2018 amid a global US campaign to blacklist the company over espionage fears.But its carrier business, which supplies telecom infrastructure to much of the world, posted a rare decline, suggesting that the US pressure could be having an impact.

"Security concerns are having an impact on Huawei, as more and more countries place restrictions on the firm's network gear," said Brock Silvers, managing director of Kaiyuan Capital. Huawei also is grappling with the December arrest by Canada of chief financial officer Meng Wanzhou, daughter of company founder Ren Zhengfei, on US charges that she and Huawei circumvented sanctions against Iran.

He also hinted that Huawei's market dominance made it a crucial player in the global 5G rollout that could not be sidelined. He said Huawei signed more than 30 commercial contracts for 5G in 2018 and shipped more than 40,000 5G base stations to markets around the world. Washington has long considered Huawei a potential threat due to the background of founder Ren, a former Chinese army engineer.

 

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