The UK’s decision to blacklist Huawei has slashed sales and profits for the controversial Chinese tech giant, new figures show.
Accounts from Huawei Technologies, the company’s UK subsidiary, show revenue fell 27.5% to £ 913.3million in 2020. Profit before tax fell from £ 48million to £ 36m. £ 5million.
Last year, the government banned Huawei from building the UK’s 5G network due to national security concerns.
Network operators have until 2027 to withdraw all existing Huawei kits – a process that is expected to cost billions of pounds and slow the rollout of the next-generation mobile system.
The company has also been the subject of a fierce crackdown by the United States under Donald Trump, who has called for a ban. Huawei’s revenue has also been affected by the ban on using Google apps on its phones, forcing the company to develop its own operating system.
President Joe Biden continued the crackdown on Chinese companies, ordering a review of apps with links to Beijing.
Huawei said UK legislation is likely to impact its revenue and operations over the next few years, but said it is confident it can handle that by scaling back its business in that country and introducing new products.
The UK company paid a dividend of £ 90million to its parent company in 2020, up from £ 55million the year before.
“The political decisions have not only had a real impact on our UK business, the people we employ and our customers, they will delay the rollout of 5G and put Britain on the slow digital lane,” Huawei said in a statement.
“Huawei’s global business has proven to be resilient and our priority in the UK remains to work with our customers and partners to ensure that the country’s networks remain reliable. “