Beijing — The Chinese tech company Huawei has reported rising profits of over 75.9%, even with falling 2021 sales due to U.S. sanctions. These sanctions followed after the state of Canada released Meng Wanzhou, the company’s CFO, back to China half a year ago. Now however, Huawei seems to be exiting its financial problems.
The main source of the tension between Washington and Huawei comes from accusations that the global tech brand is enabling Chinese spying in America. Huawei strongly denies this claim.
Meng Wanzhou told reporters in Shenzhen that the sanctions placed on them by their pacific neighbor “significantly affected [huawei’s] business.” The country had to pull many of its products from the global market after they were barred from using critical American technologies, including Google services.
“For Huawei in 2021, we may have perhaps passed through the black zone of this catastrophe.”
In 2018 Wanzhou was arrested in Canada, by order of the U.S., after Washington charged her with lying to Hong Kong banks regarding dealings with Iran. As a result, a global standoff took place, leading the Chinese to arrest two Canadians overseas.
In September Wanzhou was released after a negotiation deal between the U.S., Canada, and China where charges against her were dropped. The two Canadian citizens were also released.
Sanctions got worse in 2020 after the U.S. barred foreign nations from utilizing American technology in making Huawei chips. Since then the company has shifted its focus to less U.S.-dependent products, such as industrial and medical technologies. It sold its low-cost Honor phone brand that same year to try and keep up with the rising financial issues. They are now catching up and making profits yet again.
“Our overall financial resilience is strengthening,” Wanzhou told reporters. “The company is more capable of dealing with uncertainty.”
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