Huawei Technologies has successfully navigated US sanctions, announcing a remarkable revenue of over 860 billion yuan (approximately US$118.3 billion) for the year 2024.
This figure marks a 22 percent increase from the 704.2 billion yuan reported in 2023. The robust performance underscores Huawei’s resilience and its strategic emphasis on innovation, even in the face of ongoing trade restrictions imposed by Washington.
Howard Liang Hua, the chairman of Huawei, remarked that the company’s operations aligned with expectations, fueled by growth in its consumer electronics and smart vehicle solutions sectors. While this year’s revenue did not exceed Huawei’s peak of 891 billion yuan achieved in 2020, it ranks as the second-highest in the company’s history, reflecting a consistent recovery since the sanctions were enacted.
Addressing US sanctions and R&D investments
Since being added to the US trade blacklist in 2019, Huawei has encountered stricter limitations, particularly regarding access to advanced semiconductors that depend on American technology. These restrictions have notably affected its mobile phone and global operations. In response, the technology giant has intensified its focus on research and development to diminish its dependence on foreign technology.
Despite these initiatives, the company reported a decline in net profit during the first three quarters of 2024, which fell by 13.7 percent to 62.9 billion yuan. Analysts attribute this decrease to Huawei’s heightened capital expenditures on R&D, aligning with Beijing’s efforts to achieve technological self-sufficiency. Since its establishment in 1987 by Ren Zhengfei, Huawei has emerged as a pivotal player in China’s strategy to counter US restrictions and foster domestic technological advancements.
AI Development and Industry Acknowledgment
Huawei’s aspirations in technology are progressing, particularly within the realm of artificial intelligence (AI). The company’s cloud-computing sector has recently formed a partnership with DeepSeek, enabling users to access advanced AI models via Huawei’s Ascend cloud service. The company asserts that these models deliver performance comparable to those utilizing leading global graphics processing units (GPUs), thereby enhancing Huawei’s competitive edge in the AI domain.
Chairman Liang underscored the rapid evolution of AI, noting its critical phase of adoption across various industries. His sentiments were supported by Guangdong Communist Party chief Huang Kunming, who praised Huawei’s contribution to empowering industries through digital technology. Huang emphasized that DeepSeek’s AI models have posed a significant challenge to established American technology firms with their audacious and innovative approach.
Prospects for the Future Amidst Challenges
Huawei’s capacity to achieve substantial growth in 2024, despite facing considerable global constraints, illustrates its resilience and forward-thinking strategy. By emphasizing research and development and branching into areas such as cloud computing, AI, and smart automotive solutions, the company is establishing itself as a frontrunner in China’s technology landscape.
As the global adoption of AI accelerates, Huawei’s unwavering commitment to innovation is expected to play a crucial role in influencing the future of technology, both within China and internationally.
