Chinese Economics Thread

[Hendrik_2000]

Even after the most intense vilification campaign, Huawei still grow 30% for the first half of 2019

Please, Log in or Register to view URLs content!

Huawei first-half revenue up about 30% despite U.S. ban: Bloomberg
Reuters 12 hours ago

(Reuters) - Huawei Technologies Co Ltd's revenue grew roughly 30% in the first half after select teams secured critical supplies to keep production going despite U.S. technology export restrictions, Bloomberg reported on Tuesday, citing people familiar with the matter.

The United States has put Huawei on an export blacklist citing national security issues, barring U.S. suppliers from selling to the world's largest telecommunications equipment maker and No.2 maker of smartphones, without special approval.

Huawei's revenue growth of 30% in the first half is a slowdown from 39% in first three months of 2019, but is up sharply from 2018, Bloomberg said.

Huawei has so far managed to boost revenue by aggressively securing contracts for fifth-generation networking equipment, Bloomberg said.

The company is said to have rewarded a number of employees for helping it accelerate revenue despite U.S. ban, Bloomberg added.

Huawei declined to comment on the Bloomberg report.

Huawei last month cut revenue expectations for the year, with its founder and CEO Ren Zhengfei saying the company had taken a harder-than-expected hit from the U.S. ban.

The firm has denied its products pose a security threat.

(Reporting by Bhargav Acharya in Bengaluru and Sijia Jiang in Hong Kong. Editing by Jane Merriman)

 

[localizer]

I'm waiting for 100% boost next year. Then 500% boost when they can design and manufacture their own chips.

 

[siegecrossbow]

Even after the most intense vilification campaign, Huawei still grow 30% for the first half of 2019

Please, Log in or Register to view URLs content!

Huawei first-half revenue up about 30% despite U.S. ban: Bloomberg
Reuters 12 hours ago

(Reuters) - Huawei Technologies Co Ltd's revenue grew roughly 30% in the first half after select teams secured critical supplies to keep production going despite U.S. technology export restrictions, Bloomberg reported on Tuesday, citing people familiar with the matter.

The United States has put Huawei on an export blacklist citing national security issues, barring U.S. suppliers from selling to the world's largest telecommunications equipment maker and No.2 maker of smartphones, without special approval.

Huawei's revenue growth of 30% in the first half is a slowdown from 39% in first three months of 2019, but is up sharply from 2018, Bloomberg said.

Huawei has so far managed to boost revenue by aggressively securing contracts for fifth-generation networking equipment, Bloomberg said.

The company is said to have rewarded a number of employees for helping it accelerate revenue despite U.S. ban, Bloomberg added.

Huawei declined to comment on the Bloomberg report.

Huawei last month cut revenue expectations for the year, with its founder and CEO Ren Zhengfei saying the company had taken a harder-than-expected hit from the U.S. ban.

The firm has denied its products pose a security threat.

(Reporting by Bhargav Acharya in Bengaluru and Sijia Jiang in Hong Kong. Editing by Jane Merriman)

A lot of people probably bought it just to see what the fuss was all about.

 

[Equation]

Even after the most intense vilification campaign, Huawei still grow 30% for the first half of 2019

Please, Log in or Register to view URLs content!

Huawei first-half revenue up about 30% despite U.S. ban: Bloomberg
Reuters 12 hours ago

(Reuters) - Huawei Technologies Co Ltd's revenue grew roughly 30% in the first half after select teams secured critical supplies to keep production going despite U.S. technology export restrictions, Bloomberg reported on Tuesday, citing people familiar with the matter.

The United States has put Huawei on an export blacklist citing national security issues, barring U.S. suppliers from selling to the world's largest telecommunications equipment maker and No.2 maker of smartphones, without special approval.

Huawei's revenue growth of 30% in the first half is a slowdown from 39% in first three months of 2019, but is up sharply from 2018, Bloomberg said.

Huawei has so far managed to boost revenue by aggressively securing contracts for fifth-generation networking equipment, Bloomberg said.

The company is said to have rewarded a number of employees for helping it accelerate revenue despite U.S. ban, Bloomberg added.

Huawei declined to comment on the Bloomberg report.

Huawei last month cut revenue expectations for the year, with its founder and CEO Ren Zhengfei saying the company had taken a harder-than-expected hit from the U.S. ban.

The firm has denied its products pose a security threat.

(Reporting by Bhargav Acharya in Bengaluru and Sijia Jiang in Hong Kong. Editing by Jane Merriman)

That's just insane. It's unbelievable. At first we were talking about Huawei losing 40% of its market and rescinding back into the Chinese market to draw strength for research before it re-emerges with brand new indigenized products. Then Ren said he's expecting the loss from the ban to more or less cancel out with the natural growth speed. And that would be seen as a major thumb in America's eye. Now it's just pure growth, at a faster rate then before the ban? Huawei just continues to blow away all expectations. Trump and his gang are so badly outclassed by Ren Zhengfei that if this was a boxing match, they just got punched so hard in the face that they don't remember where they are, how they got there and what they're doing in a ring.

 

[Hendrik_2000]

That's just insane. It's unbelievable. At first we were talking about Huawei losing 40% of its market and rescinding back into the Chinese market to draw strength for research before it re-emerges with brand new indigenized products. Then Ren said he's expecting the loss from the ban to more or less cancel out with the natural growth speed. And that would be seen as a major thumb in America's eye. Now it's just pure growth, at a faster rate then before the ban? Huawei just continues to blow away all expectations. Trump and his gang are so badly outclassed by Ren Zhengfei that if this was a boxing match, they just got punched so hard in the face that they don't remember where they are, how they got there and what they're doing in a ring.

The result is so good that they increase the hiring in China and pay top graduate student 150 to 200 thousand US $ per year remember this is newbee
While at the same time they fire 600 of their Silicon valley subsidiary So much for increasing employment in US
They give 300,000 USD bonus for outstanding employee who beat the embargo by securing chip somewhere else. so much for strangling Huawei

Huawei laying off more than 600 people in US
Chinese technology giant continues to struggle
By Jordan Valinsky, CNN Business
Posted: 12:22 PM, July 23, 2019Updated: 12:22 PM, July 23, 2019

Please, Log in or Register to view URLs content!

Ethan Miller/Getty Images

• Please, Log in or Register to view URLs content!
  is laying off more than 600 workers in the
  Please, Log in or Register to view URLs content!
  as the Chinese technology giant
  Please, Log in or Register to view URLs content!
  from the Trump administration.
  
  The layoffs, announced Tuesday, will take place at Futurewei, which is Huawei's US-based research and development subsidiary. The company blamed the layoffs on a "curtailment of business operations" caused by the US' restrictions.
  
  
  Please, Log in or Register to view URLs content!
  
  RELATED CONTENT
  
  Please, Log in or Register to view URLs content!
  
  
  Please, Log in or Register to view URLs content!
  
  
  Please, Log in or Register to view URLs content!
  
  "Decisions like this are never easy to make," Hauwei said in a statement. "Futurewei will continue to operate in strict compliance with US local laws and regulations."
  
  
  Please, Log in or Register to view URLs content!
  that the pressures placed upon it by the Trump administration would result in the loss of US jobs, and the
  Please, Log in or Register to view URLs content!
  last week that layoffs were imminent for Huawei employees based in the United States.

 

[Quickie]

" The move comes as the company aims to cut more than 600 jobs at US subsidiary Futurewei Technologies. "

Please, Log in or Register to view URLs content!

Huawei offers US$300,000 salaries to top tech talent in bid to stay ahead

• The Chinese telecoms giant plans to hire from 20 to 30 ‘top-notch’ recruits to reinforce its army of researchers
• The move comes as the company aims to cut more than 600 jobs at US subsidiary Futurewei Technologies

That development comes as the privately held Chinese firm announced on the same day more than 600 job cuts at its US research and development subsidiary, Futurewei Technologies.


On its new recruitment drive, Huawei said the first batch of special hires would include eight fresh graduates with doctorate degrees, each of whom will receive an annual salary of between 896,000 yuan and 2.01 million yuan (US$130,000 and US$292,000), according to the email signed by Ren.

“Huawei needs to win the technology and commercial battles in the future,” Ren was quoted as saying in the email. He said recruiting “leading talent” to benefit the organisation requires “top-notch challenges and remuneration”.

That initiative will be expanded each year in line with the company’s efforts to build up its “combat capabilities”, according to the statement.

A Huawei employee, who declined to be identified, said internal discussions about the lofty remuneration package were quite heated. A company spokesman declined to comment.


Meanwhile, Bloomberg reported on Wednesday that Huawei Technologies quickened revenue growth to roughly 30 per cent in the first half after select teams secured critical supplies to keep production going despite US technology export restrictions, citing people familiar with the matter.

Two months into a Trump-administration ban that cut Huawei off from American suppliers, China’s largest technology company is starting to feel the pinch.


Still, while revenue growth of 30 per cent marks a slowdown from 39 per cent in 2019’s first three months, it was up sharply from 2018, the people said, asking not to be identified discussing a private matter. Executives told staff they were relieved it hadn’t been worse, one of the people said.

The stakes are high for Huawei to bolster its operations because the US trade ban was earlier estimated to wipe out US$30 billion of sales growth.

Huawei, which is expected to announce its financial performance for the first six months of this year on July 30, was put on a trade blacklist – known as the Entity List – in May
by the US Department of Commerce, citing national security concerns. That has effectively barred the firm from buying hardware, software and services from its American hi-tech suppliers.
While the US government recently said it will allow American companies to sell their products
to Huawei so long as it would not pose a threat to national security, chief executive Ren has said the US decision will not have much impact on the company.
The company blamed the “curtailment of business operations” at Futurewei, which is incorporated in Texas, on the trade blacklist, according to the statement on the US lay-offs.

“Decisions like this are never easy to make,” Huawei said. “Eligible employees will be offered severance packages, including both pay and benefits. Futurewei will continue to operate in strict compliance with US local laws and regulations.”

Despite the US trade blacklist, Huawei estimated it will ship 270 million smartphones globally this year , up 30 per cent from 2018, Ren said in a recent interview with Yahoo Finance.
Huawei has also secured 50 commercial 5G mobile network equipment contracts
worldwide, of which 28 were signed in Europe, Chen Lifang, president of the firm’s public affairs and communications department, said in Brussels last week.

 

[antiterror13]

A lot of people probably bought it just to see what the fuss was all about.

free huge ads for Huawei

 

[Hendrik_2000]

Impressive interview Ren Zhengfei with Akiko Fujita excerpt

Please, Log in or Register to view URLs content!

'That will leave the U.S. behind': Huawei CEO Ren Zhengfei speaks with Yahoo Finance
Akiko Fujita and Krystal Hu 6 hours ago

6:21Huawei, the tech giant at the center of the U.S.-China trade war, has been under suspicion for its ties to the Chinese government and concerns that its telecom equipment can be used to spy.

Back in 2012, the U.S. banned companies from using Huawei networking gear, and in May 2019 Huawei was blacklisted from U.S. communications networks along with being added it to the U.S. Department of Commerce’s Bureau of Industry and Security Entity List. This follows an executive order from President Donald Trump.

Huawei CEO Ren Zhengfei sat down with Yahoo Finance’s Akiko Fujita in an exclusive interview from his company's headquarters in Shenzhen, China. He argued that the U.S. decisions to shut out his company is actually a grave mistake that will backfire.

“The U.S. is abandoning 5G,” Ren said. “Even if they have supercomputers and super-large-capacity connections, the U.S. might still fall behind because they don't have super-fast connections. All three of these things are indispensable. That’s the reason a new breaking point will appear. That will leave the U.S. behind. Shutting Huawei out today is the start of the U.S. falling behind.”

Huawei CEO Ren Zhengfei speaking with Akiko Fujita of Yahoo Finance.
Below is a translated transcript of the conversation, which has been condensed and edited for clarity.

—

Akiko Fujita, Yahoo Finance: Let's talk about what played out between the U.S. and China a few weeks ago at the G20 summit, where President Trump and President Xi met. One of the points of discussion between them was to allow for some licenses so American suppliers could begin selling to Huawei again. What shipments have resumed since then?

Ren: I don't think we were fully prepared for being added to the Entity List. So we faced some pressure. However, after we tried to sort out our internal problems, we found that we are fully capable of shaking off our reliance on the U.S. for our core products and depending on ourselves to survive. But we also have many other products that cannot do without U.S. components. So we cut some of these products to reduce the pressure. Over 80,000 members of our technical staff are working hard to fix other “holes” in the development of our company. From what we’re seeing today, we've made pretty good progress.

Read also:

Please, Log in or Register to view URLs content!

The remarks made by Trump at the G20 Summit have had no substantial impact on Huawei yet. His remarks indicated the U.S. is no longer trying to strike blindly at Huawei. When they added us to the Entity List, even McDonald's in Mexico stopped selling to us. This suggested that the U.S. had no idea which products were actually not important and whether their supply to Huawei could be continued at that time. Trump's remarks have helped many small and medium-sized enterprises (SMEs) in the U.S. Resuming supply to us has boosted their sales. Of course, his remarks also allowed us to resume production for part of our products. Overall, as long as the U.S. shows a friendly attitude, we will continue to buy components from this country. We believe the world will ultimately collaborate for shared success.

Akiko Fujita, Yahoo Finance: You mentioned some SMEs have resumed shipments, can you tell us which specific companies?

Ren: I am not that clear about the details. To my knowledge, the supply of the vast majority of less critical components has resumed. This is a good thing. It can help some U.S. companies change their business performance. But the U.S. has not made any decisions on the supply of critical components yet. I estimate that they need around two more weeks to make a decision. If they don't make a decision, we will.

Read also:

Please, Log in or Register to view URLs content!

Akiko Fujita, Yahoo Finance: What the U.S. Commerce Department has said is if these are components that are readily available, they will grant licenses to supply Huawei, but those that have national security will not. I'm wondering, there's a lot of confusion in the U.S. What is your understanding? What constitutes national security in terms of the components that you take in? Which component is considered a national security risk, therefore not being able to be sold to Huawei?

Ren: I don’t know what the national security concern is to the U.S. We don't have any networks in the U.S., nor do we intend to sell our 5G products there anyway, so there's no way we can pose a threat to the U.S. I think the U.S. is too apprehensive. At the end of the day, collaborating for shared success is the only way forward. The U.S. is the most powerful and the most technologically capable nation in the world. It should have more confidence in its ability to ad

 

[localizer]

Trump warns China may delay trade agreement to after US election

Please, Log in or Register to view URLs content!

President Donald Trump has warned that China may not strike an agreement to end the more than year-long trade war between the two economic powers until after the US presidential election in November 2020.

“I think that China will probably say, ‘let’s wait’,” Mr Trump said on Friday, as his negotiators prepared to fly to China for the first trade talks since he reached a truce with Xi Jinping, Chinese president, at last month’s G20 in Osaka.

“When I win, like almost immediately, they’re all going to sign deals,” Mr Trump said in the Oval Office.

Rest of the article just mentions how people want him to resolve the trade war.

 

[localizer]

I hope you guys realize what he's doing here. He's dangling the prospect of a trade deal in front of his voters.