(ConservativeHub.com) – President Joe Biden has spent a considerable amount of time reversing many of the “America First” policies of former President Donald Trump. However, there is one area where the two men appear to agree — America’s no-nonsense approach to dealing with China and its aspiration to become the world’s leading economic power.
On Friday, August 6, reported figures showed Chinese tech company Huawei’s revenue dropped 29.4% year-on-year in the first six months of 2021. In dollars, revenue fell to $49.6 billion in the first half of 2021 from $70.2 billion in 2020. Reports say lagging smartphone sales in the United States led to this dramatic loss in revenue.
Chinese telecommunications giant Huawei reported its biggest ever revenue drop in the first half of 2021 https://t.co/yC3jujBNcZ pic.twitter.com/LCtrwyZ28g
— Reuters (@Reuters) August 6, 2021
The Trump administration cut Huawei’s access to US technology and services in 2019 due to concerns the company posed a security risk to the United States. Officials were particularly worried the tech giant could facilitate Chinese spying efforts. As a result, Huawei lost its ability to source many components from US vendors, which impacted its ability to make chipsets.
Huawei’s handset business took a major hit, and the company ended up selling off its Honor branded budget handsets in November 2020. For now, Huawei is attempting to shift its US sales to software and other product lines, not at risk of US sanctions.
Huawei’s current rotating chair Eric Xu told reporters the company’s “aim is to survive” in the wake of the latest revenue report. According to him, Huawei has laid out its strategic goals through 2026.
However, with the Biden administration following through on Trump’s China policies and Congress considering new limitations on Chinese tech companies, there could be revenue stream issues still to come for Huawei.
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