Huawei counts cost of Western bans as UK business withers

"Huawei's business in Britain has dwindled in the half-decade since the UK acquiesced to demands from the US to ban the Chinese networking giant from local telco networks. In its latest profit and loss accounts for the year ended December 31, 2024, Huawei Technologies UK generated just £188.2 million ($159.6 million) in revenues versus £1.26 billion ($1.7 billion) in 2019. Sales peaked in the prior year at £1.28 billion."

""Revenue in 2024 decreased by 18 percent, primarily due to planned downsizing of the business following UK and US restrictions," Huawei said in the report filed at Companies House last month. Anti-Huawei sentiment began in earnest stateside in 2019 when President Donald Trump declared a national emergency by signing an executive order that effectively prohibited the use of Chinese telecom gear by US corporations. Pressure was then placed on allies to follow suit."

"Huawei, which previously agreed to annual checks on its products by GCHQ, the British intelligence and security agency, has consistently denied allegations of spying for the Chinese Communist Party. Its software development practices were criticized by the Huawei Cyber Security Evaluation Centre, though backdoors in its hardware were not identified. Nevertheless, the business that once flew high in Britain shut down its Enterprise tech operations - servers, networking, and storage - in the country and has since been reduced to servicing network products still in use and selling lines of consumer tech."

Huawei Technologies UK reported revenues of £188.2 million for 2024, down sharply from £1.26 billion in 2019 and a prior peak of £1.28 billion. Revenue fell 18 percent year-on-year in 2024, driven by planned downsizing after UK and US restrictions. The UK Telecommunications (Security) Act outlawed purchase of Huawei 5G kit and mandated removal of Huawei equipment from 5G infrastructure by 2027. Huawei previously agreed to annual GCHQ product checks and denies allegations of spying for the Chinese Communist Party. The company closed its Enterprise tech operations in Britain and now focuses on servicing existing network kit and consumer lines.

Read at Theregister