SHENZHEN, China (AP) — Huawei’s founder likened his company to a badly damaged plane Monday and said revenue will be $30 billion less than forecast over the next two years.
The Chinese telecom giant will reduce capacity, but U.S. moves to restrict its business “will not stop us,” Ren Zhengfei, who is also the CEO, said on a panel at company headquarters.
He said the company expected revenue of about $100 billion annually for the next two years, compared to $105 billion in 2018. In February, he said the company was targeting $125 billion in 2019.
In May, the United States put Huawei on a blacklist, meaning that U.S. companies that want to sell parts to Huawei will need approval from the Department of Commerce.
U.S. officials have accused Chinese technology companies such as Huawei of stealing trade secrets and threatening cybersecurity, at the behest of the ruling Communist Party.
The action comes as Huawei and competitors prepare to launch next-generation 5G mobile networks.
Ren said there are no backdoors in its equipment to which anyone could gain access, and that Huawei is willing to enter into a no-backdoor agreement with any nation that wants one.
He said it never occurred to Huawei that the U.S. government would be so determined to take such a wide range of extreme measures against the company.
“I think both sides will suffer,” he said. “No one will win.”