Huawei founder says company could face $134 billion CAD revenue loss due to Trump ban

Huawei'south founder Ren Zhengfei says his company expects revenue of $100 billion ($134 billion CAD) this year and the next as a event of U.S. President Donald Trump'due south ban, adding that the ban could hit revenue by $30 billion USD (about $40 billion CAD).

Reuters reported this would be the first fourth dimension the company has released a budgetary impact report related to the ban.

Trump signed an executive order in May that would put several companies, including Huawei, on an Entity List if they posed a national security threat to the country. As a result, U.S. companies are not immune to do business with Huawei, and they accept until August to detect alternative arrangements should they be doing business with the company.

News of a revenue dip also comes several weeks after Huawei said information technology would survive despite a ban.

Without specifying a time frame, Ren also said that smartphone shipments will drib by 40 percent.

In 2018, the company reported a acquirement of 721.2 billion yuan ($139.6 billion CAD).

"We cannot get components supply, cannot participate in many international organizations, cannot work closely with many universities, cannot use annihilation with U.S. components, and cannot even establish connexion with networks that employ such components," Ren said.

"We did not await they would assail the states on and then many aspects."

He did notation that the company doesn't plan to cut research and development spending.

In Canada, the company is nonetheless under review and a decision on whether or non it will participate in Canada's 5G rollout.

The company'south Canadian sectionalisation has been functioning regularly as it continues its 4G LTE expansion in the north with a partnership with mobile network operator and telecom visitor Ice Wireless.

Source: Reuters