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Huawei sees £23.8bn hit to revenues from US bans over the next two years

Huawei's founder has predicted the company's revenue will take a $30bn (£23.8bn) hit over two years from US restrictions on its business.

Ren Zhengfei told a panel discussion the technology firm had downgraded its targets but said research and development spending was protected.

The company was effectively blacklisted in the US last month as the Trump administration seeks to protect its interests from, what it sees as, the threat of spying and forced technology transfers by the Chinese state as the two nations fight a trade war.

Huawei, which is the global leader in 5G technology, has repeatedly denied accusations that laws imposed by Beijing require corporate entities to cooperate if information is required.

Mr Ren said: "We never thought that the US's determination to attack Huawei would be so strong, so firm."

He told the discussion at the company's HQ in Shenzhen that it was now forecasting global revenues of about $100bn globally for the next two financial years though he hoped domestic growth in mobile phone sales would offset some of the predicted weakness.

It admitted overseas smartphone sales could be 40% lower - largely a result of the US action.

Washington has also been trying to shore up the pressure against Huawei through lobbying allies, including the UK, on the 5G issue. The UK government is reviewing its position.

President Donald Trump claims that Huawei infrastructure would be a national security risk.

Mr Ren told delegates there were no so-called backdoors in its equipment that anyone could access, and that Huawei is willing to enter into a no-spying agreement with any nation that wants one.

He said of the restrictions: "I think both sides will suffer. No one will win."


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