Huawei points to 'difficult' 2020 and potential Irish plant

Huawei saw revenues increase by 18pc in 2019 but is predicting 2020 will be a “difficult” year.

The Chinese giant – which is the world’s biggest maker of telecom network equipment and the number-two manufacturer of smartphones – was all but banned by the United States in May from doing business with US companies.

Huawei is thought to be considering Ireland for a new components manufacturing base, to weaken the terms of the United States ban.

The company now predicts full-year revenue of 850bn yuan (€108bn) for 2019, lower than its earlier projections, due to the US trade blacklisting.

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The US government alleges Huawei equipment poses national security risks because it could be used by the Chinese government to spy on users.

Huawei has repeatedly denied its products are a security threat.

Huawei’s rotating chairman Eric Xu revealed the numbers in a new year message to employees and customers.

He also forecast 2020 to be a “difficult year”, saying that the firm was unlikely to grow as rapidly as it did in the first half of last year.

“The external environment is becoming more complicated than ever, and downward pressure on the global economy has intensified,” said Mr Xu.

“In the long term, the US government will continue to suppress the development of leading technology – a challenging environment for Huawei to survive and thrive.”

Mr Xu also said that Huawei shipped 240 million smartphones last year, a 20pc increase from 2018.

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