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Huawei’s smart city business will hardly be affected by US sanctions
Huawei Technologies’ government liaison activities are not as well-known as base stations or smartphones. It was she, nevertheless, that last year formed more than 10% of all Huawei’s revenue, and under the conditions of sanctions it may turn out to be the type of business that will suffer the least from them.
Image Source: Nikkei Asian Review
The division has 6,300 employees, it is the largest in the area of work with corporate clients. As the head of the division Edwin Diender admitted, this year, due to the development of the ecosystem of smart cities, Huawei’s revenue will increase by double-digit percent, next year the growth will be slightly higher, albeit below the forecast value due to the pandemic and “trade war “between the United States and China.
This year and next, Huawei will implement more than 700 projects for the development of urban infrastructure in 700 settlements in 40 countries of the world. None of the projects were canceled due to sanctions against Huawei, although in some cases the timing of their implementation had to be revised. Huawei’s business in this area in Western Europe should face a decrease in revenue, but the company’s promising regions include Africa, the countries of the Middle East, Eastern Europe and Southeast Asia, as well as Russia and China.
Huawei technologies will be used to build a new international financial center in the UAE, the largest hospital in the Netherlands and infrastructure development for Indonesia’s largest private Internet service provider. In addition, Huawei pays attention to the development of public safety systems, the demand for which has grown during the pandemic. The problem of supplying components due to US sanctions for this type of Huawei activity is not so acute, since the company is not faced with the task of using only components of its own production. It should be borne in mind that Huawei managed to form a certain stock of components before the last phase of US sanctions came into force. The profile division of the company continues to hire specialists and expands international cooperation.