Chinese technology giant Huawei is set to undergo a significant restructuring aimed at ensuring its survival amid increasing US sanctions. The company is expected to slash its smartphone production by 60% and focus more on its cloud and artificial intelligence (AI) businesses. Huawei has also been advised to spin-off its Honor smartphone brand, which targets younger consumers, and sell it to another Chinese consortium. Despite US pressure, Huawei enjoyed a growth of 3.2% in 2020, recording a revenue of $136.7bn. However, the company’s future remains uncertain after it was blacklisted by Washington under accusations of spying for the Chinese government, which it denies. The restructuring is part of Huawei’s five-year plan to strengthen its core businesses and boost its competitiveness. The company will also give more autonomy to its sales and marketing teams and invest heavily in research and development. Huawei is considered a global leader in 5G technology but has been increasingly marginalised since the US imposed sanctions on it in 2019, restricting its access to chips and other components.
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