Huawei reports robust 2018 revenue, profit growth

Huawei reports robust 2018 revenue, profit growth

Chinese telecom giant Huawei vowed on Friday, March 29, to "shake off outside distractions" as it announced that its telecom infrastructure business contracted slightly in 2018 amid a global U.S. campaign to blacklist the company over espionage fears.

A British government report issued Thursday detailing security risks posed by Chinese firm Huawei confirms US government warnings of security risks associated with the telecom giant, according to a USA official. Huawei is reporting a 28% increase of net profits at $8.8 billion for 2018 versus only a 0.4% increase in 2017 over 2016s profits.

"Moving forward, we will do everything we can to shake off outside distractions, improve management and make progress towards our strategic goals", he told reporters on Friday.

"Moving forward, we will do everything we can to".

The issue of the New Zealand government's draft refusal to allow Huawei equipment into the New Zealand 5G network is likely to arise as Huawei has become a bellwether issue in US-China trade and intellectual property tensions.

By contrast, the core carrier business shrank 1.3%, to RMB294 billion ($43.8 billion), accounting for just 41% of total sales. "We understand these concerns and take them very seriously".

A British review of Huawei's 5G networking equipment concluded that it poses "significant" security issues, noting that "underlying defects" could make the software easy for attackers to exploit.

Huawei said it allocated 14 percent of its revenue to research and development and boasted about the 5,400 patent applications to the World Intellectual Property Organization during the year, making it globally the company with the most filings.

Huawei also noted that according to the World Intellectual Property Organization, the Chinese giant filed 5,405 patent applications in 2018, more than any other corporation globally.

Huawei denies that its equipment could be used to facilitate spying and Chinese authorities have accused Washington of exaggerating security concerns to limit competition with Western vendors.

The watchdog said Huawei had made "no material progress" in addressing security flaws identified in last year's report and raised serious doubts about the Chinese company's ability to deliver a $2bn programme to address the concerns previously raised by the United Kingdom watchdog.

Each year, the HCSEC board issues a report on how that scrutiny is going, and the latest report came out Thursday.

Chinese officials and some industry analysts have suggested the Trump administration might be exaggerating security concerns to hinder a competitor to USA tech brands.

"We are confident that companies that choose to work with Huawei will be the most competitive in the 5G era".

He reiterated claims that Huawei would not accede to any government request to monitor private communications, and that no third party held any shares in the privately held company.

"We welcome the European Union's attitude", said Mr Guo.

Huawei is already a major player in Britain's 4G network, prompting the British government to set up a system to detect the risks and deter the threat, rather than push the company out the door.

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