Forecast Shows China’s Huawei & US Chipmakers Will Lose BILLIONS From Ongoing Trade War

The United States’ ongoing battle against Huawei is taking a toll on the Chinese tech giant, and its founder now says that it will likely cost the company billions in revenue as a result.
Despite its place as the world’s largest supplier of telecom equipment, Huawei has suffered as a result of actions taken by the United States government, and the tech giant’s founder now says it will cost the company more than $30 billion dollars in the next two years.
So in the next two years I think we will reduce our capability, our revenue will be down by about 30 billion dollars lower than forecasted. So our sales forecast is 100 billion dollars in revenue this year and next year, but in 2020, we may regain our growth momentum to contribute more to human society,” said Huawei Founder and CEO Ren Zhengfei.
Zhengfei said Huawei is like a “badly damaged plane” following Washington’s decision to place it on a blacklist that requires U.S. firms to obtain government approval before selling parts to the Chinese tech giant. But he maintained that the core of that plane is still intact, and it will be repaired.
U.S. officials have repeatedly claimed that Huawei is a threat to national security. But the decision to target the company will also hit its top customers in the United States, the chip-maker Broadcom announced that it will make $2 billion dollars less in annual sales than expected—making it one of the first to quantify the financial impact of the ongoing Trade War.
Canadian Prime Minister Justin is set to meet President Trump in Washington this week, where they plan to discuss a new continental trade pact and the status of two Canadians who remain detained in China. The two men were arrested after Canada complied with requests from the US, and detained Huawei’s chief financial officer in December.
Meng Wanzhou now faces extradition to the US, and her hearing is set to begin in January 2020. Canadian Foreign Minister Chrystia Freeland claimed the decision to move forward with the extradition process was done so lawfully.
When it comes to the extradition request for, around Ms. Meng, Canada has very carefully and intentionally abided by our extradition treaty commitments. We are a rule of law country, and rule of law is not something you can pick and choose,” Freeland said.
Regarding the current tensions with Canada, a spokesperson for China’s Foreign Ministry said that “the responsibility lies entirely with Canada,” and Beijing is waiting on Ottawa to release Huawei’s CFO, and to put relations back on track between the two countries.
Now, it remains to be seen how long the trade war will continue and if its impact will be even greater than billions of dollars in revenue lost, both in China and in the United States.

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Rachel Blevins is a journalist who aspires to break the left/right paradigm in media and politics by pursuing truth and questioning existing narratives.

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