Huawei Retrenches in the US After Years of Criticism

Advertisement
By Reuters | Updated: 18 April 2018 10:01 IST
Highlights
  • Huawei is viewed with suspicion in Congress as a potential threat to US
  • Company has laid off five employees at its Washington office
  • It has also slashed lobbying expenditures

China's Huawei Technologies Co, viewed with suspicion in Congress as a potential threat to US national security, has laid off five employees at its Washington office and slashed lobbying expenditures, according to sources familiar with the matter and government filings.

Huawei, the world's third-largest smartphone maker, let go its vice president of external affairs Bill Plummer and four other people in the Washington office, sources said. The New York Times was first to report the shake-up.

The company also slashed lobbying expenditures to $60,000 (roughly Rs. 40 lakh) in 2017 from $348,500 (roughly Rs. 2.3 crores) in 2016, according to Huawei filings.

Advertisement

"Like every company, we continually evaluate our organisation and align our resources to support our business strategy and objectives," a Huawei spokesman said. "Any changes to staffing size or structure are simply a reflection of standard business optimisation."

Advertisement

The retrenchment comes amid a steady drip of bad news for the Chinese telecommunications company prompted by concerns by US national security experts and China hawks who are loath to see equipment made by a Chinese firm installed in the US telecommunications network.

In February, two Republican US senators introduced legislation that would block the government from buying or leasing telecommunications equipment from Huawei or China's ZTE Corp, citing concerns that the companies might use their access to spy on US officials.

Advertisement

Such concerns have extended to handsets. In January, AT&T was forced to scrap a plan to offer its customers Huawei handsets after some members of Congress lobbied against the idea with federal regulators.

The United States this week banned American firms from selling parts and software to ZTE for seven years. Washington accused ZTE of violating an agreement on punishing employees after the company illegally shipped US goods to Iran.

Advertisement

Despite being hampered in getting a foothold in the US market, Shenzhen-based Huawei saw net profit rise to CNY 47.5 billion ($7.3 billion) in 2017, sharply up from a 0.4 percent increase in 2016. The rise was partly the result of a 85 percent drop in net financing expenses and partly due to higher revenue.

© Thomson Reuters 2018

 

For details of the latest launches and news from Samsung, Xiaomi, Realme, OnePlus, Oppo and other companies at the Mobile World Congress in Barcelona, visit our MWC 2025 hub.

Further reading: Telecom, Huawei, US, China
Advertisement

Related Stories

Popular Mobile Brands
  1. OnePlus 15T Details Revealed; New Telephoto Lens, Bigger Battery Confirmed
  2. Here's When the Oppo Find X9 Ultra Will Be Launched Globally
  3. iQOO Z11x 5G Will Launch in India on This Date
  4. iPhone 17e Launched in India With MagSafe, 48-Megapixel Camera: See Price
  5. Here's When the Oppo K14 5G Will Launch in India: See Expected Specs
  6. Nothing Phone 4a Will Go on Sale in Bengaluru at a Drop Event on This Date
  7. iPad Air (2026) With M4 Chip Launched in India at This Price
  8. iQOO 15R Goes on Sale in India Today: Know Price and Offers
  9. Samsung 'Holi Hai' Sale Brings Offers on Bespoke AI Appliances
  10. Poco X8 Lineup, Poco C85x 5G Appear on Flipkart Ahead of Launch
  1. Aspirants Season 3 OTT Release Date Announced: When and Where to Watch it Online?
  2. Samsung Announces ‘Holi Hai’ Sale With Cashback on Bespoke AI Appliances
  3. Kiss of the Spider Woman OTT Release Date: Know When and Where to Watch it Online
  4. Vanchana OTT Release: When and Where to Watch the Courtroom Drama
  5. Xiaomi 18, Xiaomi 18 Pro, Xiaomi 18 Pro Max Early Leak Reveals Rear Camera Details
  6. Meta AI Reportedly Testing Personalised Shopping Recommendations to Compete With ChatGPT, Gemini
  7. Oppo Find N6 Reportedly Appears at MWC 2026; Company Confirms March Launch in China
  8. Resident Evil Requiem Becomes Highest User Rated Game of All Time on Metacritic
  9. MWC 2026: Tecno Camon 50 Ultra 5G Unveiled With 6,500mAh Battery, 50–Megapixel Camera
  10. Vivo Y21 5G With Dimensity 6300 Chip Listed on Cellular Operator’s Website Ahead of Launch
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.