Huawei to raise USD 1.5 bln to finance in-house development
Jul 12, 2019 (China Knowledge) - Chinese tech giant Huawei Technologies is planning to raise USD 1.5 bln to finance in-house development of parts and software. The move is Huawei's first major bond float since the United States officially put Huawei on its "Entity list" and adopted a series of repressive measures.
The U.S recently indicated that it would ease up on the restrictions, and some companies will be permitted to sell to Huawei. But Huawei’s future access to American supplies remains uncertain.
Huawei CEO Ren Zhengfei expects the U.S. sanction to cause the company to lose USD 30 bln in revenue in 2019 and 2020. The company intends to develop in the next two years to ensure it can remain afloat in spite of whether the ban remains in place.
Huawei looks to launch its own smartphone operating system as early as this fall to replace Android OS, which Google may be barred from supporting under the U.S. restrictions. The system, called Ark, is being developed to connect all objects synchronously.
But developing alternatives to materials that Huawei buys from American suppliers will be difficult, as non-U.S. companies are also restricted when selling products to Huawei when they include similar American items.
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