Huawei expects to see impact for new U.S.-China trade skirmish
On Monday, Huawei’s CEO announced that damage to the company would be ‘inevitable’ due to the recent rise in U.S. - China trade tensions. Yahoo Finance’s Akiko Fujita joins The Final Round panel to discuss the latest from Huawei.
Video Transcript
JEN ROGERS: That last week, we talked a lot about these rising tensions between China and the US, the trade war flaring up again. And, Akiko Fujita has been all over that story for us. She's got some news. Today, Huawei, who's been really the target of some of these changes, just had their analyst day overnight. What are the new developments, Akiko?
AKIKO FUJITA: Yeah, Jen, I have to say, in all the years of covering this company, this was the most downbeat I have heard them, and we heard from the rotating Chairman Guo Ping, who essentially said, any kind of damage to the company is inevitable. He said, we're still trying to figure things out, and here's the key line. He said, survival is the key word for us right now.
So that tells you what dire straits the company is in right now, and they realize the impact of this latest measure coming down from the Commerce Department, which essentially shuts down all foreign semiconductors. And Huawei's just looking to source from them. We had a chance to speak with the CTO Paul Scanlon, who was on the Move earlier today, who said that, yes, in fact, 5G deployment now will be delayed.
It was already considered to be delayed as a result of the coronavirus. He says, this will extend the delay even further, and here's an indication, I think, of where the company stands right now. They are in de-spend at a time when they have really seen a dramatic slowdown in business. It went up roughly 30% last year. This is a company that is really trying to become more and more self-reliant, because they see those doors shutting more and more as a result of the US measure.
