Corporate Revenue Drops, Huawei: We Just Want To Survive

JAKARTA – After getting pressure from the US, Huawei just wants to focus on maintaining the company's survival. This was conveyed by Eric Xu as Huawei's Rotating Chairman in announcing the company's declining revenue.

Eric Xu revealed his plans for the next five years. He has publicly stated that Huawei's strategic goal is survival. The statement was understandable after the company came under pressure from the Trump administration which then continued to the Biden leadership.

"Our goal is to survive and do it sustainably", said Eric Xu as quoted by CNBC International.

The Chinese tech giant has announced its earnings recently. From the report, it is known that their revenue decreased by about 30 percent in the first quarter of 2021. Huawei could only earn a total of 320.4 billion yuan. Down from the same period in the previous year.

Meanwhile, the company's profit margin increased by about 0.6 percent to 9.8 percent. The increase was obtained after the company increased the efficiency of overall performance as predicted by the company.

As is well known, Huawei has been blacklisted in the US since 2019. The US decision has repelled Huawei from a global business environment in which several US companies are barred from collaborating with Huawei. This has made Huawei unable to provide several important applications on its devices such as Google Maps, the Android operating system, YouTube, Gmail, Google Play Store, and so on.

The entry of Huawei into the blacklist occurred during the Trump administration. When Trump stepped down from power, Huawei got a glimmer of hope and hoped their company was removed from the black list following the election of a new president, Joe Biden. However, until now Biden has not removed Huawei's name from the blacklist.

Due to the pressure from the US, Huawei is trying to make its own operating system called Hongmeng OS or HarmonyOS to maintain the company's survival. They have also worked with a Dutch company to bring a navigation service to replace Maps.

Huawei's other business, namely the procurement of 5G network infrastructure abroad, has also experienced setbacks due to the US policy. Huawei has been accused of being a Chinese company that threatens US national security. The inclusion of Huawei in the black list has made the company step down from the ruler of the global smartphone market share.