Huawei Confident Of Survival Despite Curbs

The founder of Chinese tech giant Huawei said on Tuesday that he expects no relief from US export curbs because of the political climate in Washington but expressed confidence the company will thrive because it is developing its own technology.

Ren Zhengfei also said he doesn't want relief from US sanctions if it requires China to make concessions in a tariff war, even if that means his daughter, who is under house arrest in Canada on US criminal charges, faces a longer legal struggle.

In an interview with The Associated Press, the 74-year-old Ren said Huawei expects US curbs on most technology sales to go ahead despite Monday's announcement of a second 90-day delay. He said no one in Washington would risk standing up for the company.

The biggest impact will be on American vendors that sell chips and other components to Huawei, the biggest maker of network gear for phone companies, he said.

Washington has placed Huawei on an "entity list" of foreign companies that require official permission to buy American technology.

"Whether the 'entity list' is extended or not, that will not have a substantial impact on Huawei's business," said Ren. "We can do well without relying on American companies."

Huawei Technologies, China's first global tech brand, is at the centre of a battle over trade and technology that threatens to tip the global economy into recession. American officials accuse the company, also the No 2 global smartphone brand, of stealing technology and facilitating Chinese spying. Huawei denies those accusations.

Huawei's chief financial officer, who is also Ren's daughter, is fighting extradition from Canada to face US charges related to possible violations of trade sanctions on Iran. Beijing arrested two Canadians in a possible attempt to force her release.

Ren looked relaxed and confident throughout the two-hour interview at a palatial new building in neoclassical European style where Huawei entertains customers. The atmosphere was a striking contrast from a June 17 news conference at which Ren compared the company to a "badly damaged airplane" and warned US sanctions would cut Huawei's projected smartphone sales by US$30 billion over the next two years.

President Donald Trump has suggested controls on Huawei might be lifted if Beijing agrees to a deal on trade and technology disputes that led to US tariff hikes on Chinese imports.

Ren rejected that. He said Huawei couldn't ask for favours that might hurt the interests of China's poor majority.

"I couldn't take it if those poor people sacrificed their own interests for the benefit of Huawei," said Ren. "Maybe my daughter will suffer more. But I would rather do that instead having the poorer people in China sacrifice for Huawei's survival and development."

The May announcement of export curbs prompted warnings that sales of Huawei smartphones and other products that use US chips and other technology could be devastated. The curbs also mean a loss of billions of dollars in potential annual sales for American vendors.

Even before the announcement, Huawei was working on developing its own chips, software and other technology that might reduce reliance on American vendors. The company spent US$15 billion last year on research and development, more than Apple or Microsoft.

Huawei reported sales in the six months through June rose 23.2 percent over a year earlier. Its chairman, Liang Hua, said in July that Huawei was reviewing its core products to make sure they all could be delivered to customers without American components.

"At a strategic level, the US entity list is helpful to Huawei," said Ren. He said the company has responded by eliminating "marginal, unimportant businesses or products" and focusing resources on "major products."

"The whole company can focus more on our most competitive products," he said.

This month, Huawei unveiled its own smartphone operating system it said can replace the popular Android system from Alphabet's Google. Huawei's phones still use Android but Google is blocked from supporting maps, music and other services. (AP)