Huawei has expanded into new businesses, built its supply chain and boosted profits thanks to billions of dollars in support from the Chinese government.


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Laboratorio Linux

The Chinese technology company Huawei has been subject to various sanctions from the US government, including restrictions on sales of telecommunications equipment ,due to national security threats . Under these circumstances, Huawei has received billions of dollars in aid from the Chinese government, which has enabled it to expand into new businesses and increase profits.

The US Wanted to Knock Down Huawei. It's Only Getting Stronger. - WSJ
https://www.wsj.com/business/telecom/huawei-china-technology-us-sanctions-76462031



Since 2020, the United States has imposed strict restrictions on the sale and import of products from Chinese companies, including Huawei, citing national security threats, and has sought to exclude Chinese manufacturers from the networks of its allies.

Meanwhile, the Chinese government is working on a campaign called '

Delete A ' to remove American technology from the country. In particular, Huawei has received a large amount of support, and according to the Wall Street Journal, the Chinese government has provided Huawei with billions of dollars in support in the form of preferential purchase agreements and subsidies. In fact, Chinese government agencies, state-owned enterprises, and Communist Party agencies are introducing Huawei chips, smartphones, cloud services, and software.


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Kārlis Dambrāns

'The US government's restrictions on Huawei are inadvertently making the company more resilient ,' said Sameh Boujelbene, an analyst at research firm Dell'Oro Group.

With government backing, Huawei has also entered the electric car market in recent years and is building its own operating system, HarmonyOS , which doesn't rely on Google's smartphone operating system Android.

Huawei Luxeed S7 SUV Autonomous Driving - YouTube


However, Huawei is one step behind the cutting-edge semiconductor market, including Nvidia, due to a ban on imports of high-performance chips from the U.S. Some experts point out that 'without access to more advanced Western technology, it will be difficult for Huawei to continue innovating.'

Nevertheless, Huawei said, 'We have faced many challenges over the past few years. However, we have been able to grow as we continue to face these challenges. Huawei's survival and development are thanks to the trust and support of our customers, partners, and all sectors of society around the world. Maintaining research and development investments will be even more important in the future.' In fact, with support from the Chinese government, Huawei has reported that its revenue has doubled from 2022 to 2023, and that about two-thirds of its revenue comes from domestic clients.

Meanwhile, in the United States, supporters of Huawei's restrictions have praised the government's actions, saying, 'We have achieved our primary objective of reducing the amount of Huawei products in the networks of the United States and its military allies.' Matt Pottinger, director of the China program at the think tank Foundation for Defense of Democracies, said, 'Our goal was to protect data while preserving relationships with our allies. Even if this action puts Huawei in a difficult position, our goal is not to put Huawei out of business.'

Below is a graph comparing Huawei's revenue sources in 2018 and 2023. While Huawei's revenue is growing in China, it is reported that it is declining in EMEA , Asia Pacific, and the Americas.



The Ministry of Industry and Information Technology and the Ministry of Finance of China have not commented on the report.

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