Huawei reports bumper 2018 sales despite setbacks in West
Rotating chairman says treatment of Chinese technology giant unfair, but will drive it on
Chinese technology giant Huawei Technologies Co. said it expects 21% revenue growth for 2018 despite having spent much of the year fighting cybersecurity challenges by the U.S. and its allies. In a new-year message titled “Fire is the Test of Gold,” rotating chairman Guo Ping said the company expects its sales to reach $108.5 billion this year, fueled by the shipment of 10,000 5G base stations and 200 million smartphones. The world’s largest maker of telecommunications equipment and its No. 2 global smartphone vendor has faced an extraordinary few months. It has been under intensified scrutiny from officials in the U.S., Australia and other allies, who want to block the use of Huawei’s equipment in 5G networks set to begin rolling out over the next year. U.S. officials have long feared that Huawei’s equipment could be used to spy on Americans or disrupt telecom networks, a charge that Huawei disputes and on which it has challenged authorities to provide hard evidence. In the letter, Mr. Guo said it had signed 26 commercial contracts for 5G with leading global carriers. “5G markets that choose to not work with Huawei—they will be like an NBA game without star players: the game will go on, but with less deftness, flair, and expertise,” he said. His comments echo those of colleague Ken Hu, of one of Huawei’s four deputy chairmen, who told reporters Dec. 18 in an unusual media gathering that foreign officials need to back up claims that the company poses a cybersecurity threat. The private Shenzhen-based company, self-declares selected earnings, but didn’t release any other forecasts in the new-year address. Mr. Guo didn’t directly mention the Dec. 1 arrest of Meng Wanzhou, Huawei’s chief financial officer and daughter of its billionaire founder. Ms. Meng was detained in Canada at the behest of U.S. authorities seeking her extradition to face fraud charges for allegedly misrepresenting Huawei’s relationship with a company that had dealings in Iran. Two banks that helped power the Chinese company’s rise, HSBC Holdings and Standard Chartered PLC, subsequently decided not to provide it with any new banking services or funding after deciding the company was too high risk, the Journal reported Dec. 20. “We must not be discouraged by malicious incidents or temporary setbacks,” Mr. Guo said in his letter. “Setbacks will only make us more courageous, and incredibly unfair treatment will drive us to become the world’s number one.”