Huawei says business as usual after overcoming multiple US restrictions

Huawei Technologies Co. posted its third consecutive quarter of growth and declared a return to normal after overcoming a host of US restrictions this year.

The company’s revenue rose 7.2 percent to Rs . Revenue in 2022 was CNY 636.9 billion (about Rs. 7.59,520 billion), the Shenzhen-based company said, a slight year-on-year increase.

Huawei seeks to open up new markets and deals after US tech export restrictions eroded its smartphone business – briefly the world’s largest – and restricted sales of advanced gear in developed markets. Those trade restrictions include a ban on contract makers of chips that make Huawei-designed semiconductors, effectively bringing the HiSilicon design business to its knees.

Rotating chairman Eric Xu warned of macroeconomic uncertainty in 2023 in an annual New Year’s message to staff, but made no mention of China’s abrupt reversal of Covid policy. This reversal has raised concerns about the impact on economies of a subsequent surge in infections.

But Xu said the longer-term demand for technology remains intact. He didn’t specify how the company might overcome export restrictions, but Huawei has spent much of the past three years developing, researching, and sourcing alternatives to American components.

“In 2022 we successfully pulled ourselves out of crisis mode. US restrictions are now our new normal and we’re back to business as usual,” Xu said. “The macro environment may be full of uncertainty, but we can be sure that digitization and decarbonization are the way forward and future opportunities lie therein.”

Huawei also sought alternative revenue streams by selling patents, technology services, and wireless equipment to new customers, ranging from automakers to coal mines and industrial parks. It started collecting royalties from the biggest smartphone brands in the world, including Apple and Samsung.

The Chinese company has signed more than 20 patent license agreements this year, covering smartphones, connected cars, networking and the Internet of Things, according to Alan Fan, the company’s Global Head of IP.

“We managed to keep our heads above water because we fought together, united as one,” Xu wrote. “2023 will be the first year we return to normal business operations with external restrictions still in place.”

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