Huawei Hit by COVID-19 Fallout, Rushes to Assure "No 5G Supply Disruptions"
[Asia Economy Reporter Joselgina] Chinese telecommunications equipment company Huawei hastily sought to draw a line, stating that there will be no disruption in the supply of 5G equipment due to the COVID-19 pandemic. Despite US sanctions, Huawei, which has expanded its presence based on its home market in China, was expected to be hit hard across its business, from smartphone sales to telecommunications equipment sales, due to the COVID-19 crisis.
According to major foreign media, Yang Chaobin, head of Huawei's 5G division, attended a 5G-related event in London, UK, on the 20th (local time) and said, "Some time has passed since the outbreak, and all of Huawei's factories have resumed production." He added, "Currently, 5G equipment is being produced at Huawei's own factories," and "there is no impact on supply."
This statement is interpreted as a concern that the COVID-19 outbreak, which started in Wuhan, China, and spread globally with a rapid increase in infections and deaths, might negatively affect Huawei's overall business. The world's largest telecommunications and mobile exhibition, Mobile World Congress (MWC) 2020, in which Huawei had invested billions and put great effort, was also canceled due to the COVID-19 threat.
Despite US sanctions, Huawei showcased its lead in 5G commercial contracts on the day. Ryan Ding, head of the Carrier Network Business Group, announced, "91 5G commercial contracts have been signed." This far exceeds the 81 contracts announced last week by Ericsson. Among these, the European market, which Huawei recently targeted, accounted for more than half (47 contracts). Asia accounted for 27 contracts.
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Major foreign media interpreted that despite US sanctions and pressure, Huawei is leading in 5G commercial contracts, which is likely to provoke US President Donald Trump. Huawei also announced plans to invest $20 million over the next five years in the UK's 'Partner Innovation Program' on the same day.
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