John Paul M. Joaquin Tech 12.30.2022 06:Dec AM EST

Huawei Revenue Stabilizes, ‘Back to Usual Business’ Following US Sanctions

Huawei is back on its feet.

The China-based tech giant has recently announced its revenue has more or less stabilized following the decline it saw in late October due to the ongoing trade war between the US and China.

You may remember that the US recently banned the sale and import of Huawei and ZTE tech due to the national security concerns they present, per BBC.

Huawei Revenue Recovery Details

Eric Xu, Huawei's current chairman, said in his New Year's message to employees that it had exited its "crisis mode" following the latest US restrictions, with the company noting growth in its telecom-infrastructure business and flat overall revenue for 2022, per the Wall Street Journal.

Xu added that the restrictions the US placed on the company are now its "new normal," and that he expects that Huawei will end 2022 with an annual revenue of 636.9 billion yuan ($91.5 billion), an amount that is mostly the same as the company earned in 2021.

According to Reuters, Huawei's revenue hit 636.8 billion yuan in 2021.

Additionally, The Washington Post reports that Xu said in its message that Huawei also achieved "rapid growth" in its cloud business.

Although the company didn't disclose a breakdown of its business lines or provide an annual profit figure, the growth and retention are the company's latest signs that it has found its footing.

This fact is especially crucial following the sanctions the US placed under the Trump administration that affected its revenue, particularly its smartphone business.

However, Huawei's revenue for 2022 remained well below its $122 billion record, which it attained in 2019. During that time, it was the top Android smartphone vendor globally for some time before US sanctions decimated it.

The Many Sanctions And Bans The US Placed On Huawei

The US' sanctions on Huawei began during the Trump administration when government officials deemed the company to be a national security threat.

According to a previous report from CNET, the US government at the time released a 10-count indictment alleging that Huawei conspired to steal intellectual property from T-Mobile.

The US government also deemed it a Communist Chinese military company operating in the US due to it allegedly being "owned, controlled, or affiliated with China's government, military, or defense industry," per TIME.

As a result, the US placed sanctions on the company to limit the company's growth and deprive China of advanced technologies, such as microchips, per Wired.

The country also encouraged others, including the UK, Canada, and Australia, to place similar restrictions on the company.

Huawei gradually felt the effects of these sanctions. However, this flatline and slight growth may be the beginning of the end of the company's decline.

In the meantime, though, Xu said that Huawei's plan for 2023 will be to maintain the company's heavy investment in research and development, along with converting its cloud business to be the "foundation in driving growth.