Huawei is among the world’s top spenders in R&D

Huawei spent a record $13.8 billion on research and development last year, ranking the Chinese tech giant among the world’s top spenders, and projects its budget will rise to as much as $20 billion each year. The beefed-up spending is likely to fuel fears in the US administration that Chinese companies will spearhead standard-setting in next generation technologies, including networks. US concerns of snooping and state support — denied by Huawei — have seen the Shenzhen-based company effectively frozen out of the US market, unable to sell either telecoms kit or even handsets at any scale… The R&D budget, which equates to 15 per cent of sales, ranks the Chinese tech giant third among groups globally, just behind Alphabet, Google’s parent… News of Huawei’s strength comes amid fears in the White House over Chinese advances in fifth-generation (5G) high-speed data networks. The concerns prompted Donald Trump to block Broadcom’s acquisition of Qualcomm, fearing the deal would mean cost cuts and undermine the US chipmaker’s ability to compete with Huawei in 5G… The ramped up R&D spending emerged as Huawei, which is owned by employees, announced net profits of Rmb47.4 billion ($7.6 billion) last year, up 7.9 per cent year-on-year, on the back of revenues of Rmb603.6 billion. 
 
Louise Lucas

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