Huawei, the Chinese tech giant, estimated its profits would more than double in 2023 as it accelerates attempts to recover from a year in which the company apparently violated US sanctions by releasing a premium smartphone.
The Shenzhen-based company has been at the focus of a tense dispute between China and the United States, with Washington warning that its equipment may be used for espionage by the Chinese government, which Huawei denies. Sanctions imposed in 2019 have limited the firm’s access to US-made components and technologies, requiring it to diversify its growth plan.
Huawei announced on Friday that it made a profit of 87 billion yuan ($12 billion) last year, more than double 2022’s 35.6 billion yuan but falling short of its record 113.7 billion yuan profit from 2021. Revenues also increased by 9.6 percent to 704.2 billion yuan.
Highlighting Huawei’s efforts to diversify as it is cut off by Western sanctions, the company said revenues from its smart car division more than doubled last year, totaling 4.7 billion.
Huawei’s profit climb comes after the company sparked controversy in Washington with the debut of its Mate 60 Pro smartphone last year.
It was powered by an advanced locally created chip and stirred controversy about whether the United States’ efforts to limit China’s access to semiconductor technologies were effective.
Huawei remains the world’s leading 5G equipment manufacturer, having worked on infrastructure projects in numerous nations.
The US has attempted to persuade its allies to exclude Huawei from their 5G networks, claiming that Beijing may exploit the company’s technology to monitor conversations and data flow. The European Commission ruled in June of last year that Chinese telecom equipment vendors, including Huawei, posed a security danger to the EU.
