BIZUPDATE
Tuesday July 30, 2019 B3 Company remains resilient in face of US sanctions
Huawei H1 revenue seen higher
By Song LinChinese technology giant Huawei is
scheduled to release its first-half fi-
nancial statements on Tuesday, and
both domestic and foreign analysts
have estimated a 30 percent increase
in revenue though US government
has placed the company on a black-
list.
Fu Liang, a Beijing-based indepen-
dent industry analyst, told the Global
Times on Monday that the company
has “an abundant business operation
system, which could help it to diver-
sify its risks and obtain continuous
revenue growth.”
Revenue growth was mainly sup-
ported by Huawei’s strongly expand-
ed consumer business, especially in
China, which was not affected by the
US ban, Fu noted.
According to the Xinhua News
Agency, Huawei’s core business used
to be its mobile network business,
which meant selling gear to mobile
carriers, but in recent years its con-sumer businesses -- selling smart-
phones and other devices -- directly to
the general public expanded strongly.
In 2018, the company’s consumer
business sales grew 45.1 percent year-
on-year, accounting for almost half of
the company’s total revenue.
Huawei itself has hinted at a
promising performance. The com-
pany on Monday said on its WeChat
account that the data is all ready for
the upcoming release and the public
could pay attention.
The light-hearted notice also de-
scribed its financial management
system. Its global financing control
center can settle accounts for its hun-
dreds of subsidiaries each day and
has achieved real-time visibility of
global accounting with a traceable
process.
According to Xinhua on Thursday,
Huawei’s press conference on Tues-
day will have the theme “Resilience:
Huawei Maintains Robust Opera-
tions in the First Half of 2019.”
As a global telecom giant, Hua-
wei’s development has drawn wideattention. The US imposed export
controls over Huawei, banning it
from purchasing technology or parts
from US companies, citing so-called
national security reasons.
Ren Zhengfei, founder and CEO
of Huawei, has played down the im-
pact of US sanctions in recent inter-
views.
He estimated that the company’s
overall yearly revenue will decline by
about $30 billion, which is not a big
deal.
“Huawei saw the risk of techno-
logical reliance on few entities, es-
pecially when ZTE was hit by a US
crackdown, and it started to prepare,”
Fu said.
The company built up inventories
in case of possible supply cut-offs and
stepped up efforts to improve its tech-
nology independence and expand its
supply chain, Fu noted.
Besides, Huawei has taken the
leading position in 5G technology,
which could bring the company enor-
mous growth in the future, even
though it takes years of investment.Tesla brings openings
to car parts makers
By Xie JunMass production of the Tesla Model 3 in Shang-
hai will offer opportunities to China’s auto parts
manufacturers, including expanding Tesla’s sup-
ply contracts with the carmaker’s existing Chi-
nese suppliers or finding new local partners, but
the effects won’t be strong, experts said.
“The impact of Tesla’s Shanghai-based assem-
bly line will be smaller than some people might
imagine, and it won’t save China’s car parts in-
dustry from its downturn,” Wu Shuocheng, a
Shanghai-based independent automobile analyst,
told the Global Times on Monday.
Domestic news portal yicai.com recently cited
an executive from Tesla as saying that the Tesla
Shanghai plant might start mass production at
the end of this year, and that the Shanghai plant
would strive for the best industrial chain alloca-
tion among Chinese car parts suppliers. Tesla
didn’t respond to interview request as of press
time.
Tesla said that construction work on the plant
has “exceeded normal expectations” and that it
will be capable of making cars by the end of this
year, according to a report by thepaper.cn in mid-
July.
According to Wu, Tesla’s mass production in
Shanghai might push it to update orders with
existing domestic suppliers, such as those with
Shanghai Baolong Automotive Corp.
Ningbo Tuopu Group, which became a Chi-
nese supplier for Tesla in 2016, didn’t reply when
contacted by the Global Times on Monday.
Glass manufacturer Fuyao Glass, which is
based in East China’s Fujian Province, recently
revealed that it is researching and developing
equipment needed for Tesla’s mass production,
but the products’ supply needs further confirma-
tion from Tesla. A Fuyao Glass public relations
representative declined to disclose further details
on Monday.
However, the impact of Tesla’s localization on
China’s car parts industry will be limited, particu-
larly for core parts including the electric motor,
battery and the electric controller, according to
experts.
“Tesla’s requirements for intelligent parts
can’t be met by most domestic suppliers because
of technical bottlenecks,” car industry analyst Jia
Xinguang told the Global Times on Monday.
Wu also said that it often takes years for a car-
maker to develop new core parts suppliers. “Also,
because it’s hard to estimate the expansion of
Tesla’s production, many local suppliers would
think twice about supplying the US brand, which
is a newcomer to the Chinese market,” he said.SASAC refutes rumors Chinese high-speed trains pose radiation safety risks
Electromagnetic radiation on
Chinese high-speed trains is
within a safe range, said the
State-owned Assets Supervi-
sion and Administration Com-
mission (SASAC) on its official
WeChat account on Sunday, re-
futing rumors that such radia-
tion poses a health hazard.
“Such slander appeared
on the internet in 2013, with
highly similar content claimingthat Chinese bullet trains have
radiation safety concerns,” said
the SASAC.
All electric appliances emit
radiation. That includes mobile
phones and razors, which are
used in daily life. Radiation will
not affect people within a safe
range, said the SASAC.
The safety standard for elec-
tric field radiation is less than 5
kilovolts per meter, according
to the International Commis-sion on Non-Ionizing Radia-
tion Protection. The radiation
level of Chinese bullet trains is
within the range of 0.011-0.021
kilovolt/meter in high-speed
railway cars, the connections
of cars and the cabs of different
models, according to data mea-
sured by the Beijing Bureau of
China Rail, the SASAC said.
“The amount is far below
the international standard,
which is unlikely to harm hu-man beings,” said the SASAC.
“The electromagnetic ra-
diation mainly comes from the
traction motor at the bottom of
the carriage,” said Jiang li, an
expert of China Railway Rolling
Stock Corp (CRRC), the SA-
SAC reported.
Jiang said that the metal
shells of domestic carriages
have a shielding effect, and the
thickened metal plate under the
seat can block radiation.An anonymous source at
CRRC Qingdao Sifang Rolling
Stock Research Institute Corp
confirmed the remarks.
“Your chemistry teacher will
cry you a river,” commented the
SASAC when responding to a
rumor that France’s high-speed
train, the TGV, uses lead sulfide
as an isolation layer to reduce
radiation.Global TimesEARNINGS
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[email protected] Imports on show
Imported goods from a dozen countries like Japan, Spain, Canada and the UK are showcased at the Hongqiao
Import Commodity Exhibition and Trade Center in East China’s Shanghai Municipality on Sunday. The 100-day
countdown began on Saturday for the second edition of the China International Import Expo (CIIE). Photo: IC