Huawei Risk Report

⚖️ Legal & regulatory

Huawei is currently facing significant legal and regulatory challenges that impact its business operations. The company has been subjected to U.S. sanctions, and there have been multiple legal threats and regulatory disputes involving both the United States and China. These tensions affect Huawei’s ability to produce and distribute its products globally.

• The U.S. imposed worldwide restrictions on the use of Huawei's AI chips, deeming it a violation of export controls 🗓 2025-05-15.
• On 🗓 2025-05-21, China warned of legal action against U.S. enforcement on Huawei AI chips, amplifying international tensions.
• The continuous struggle for Huawei to overcome sanctions illustrated as it gears toward challenging Nvidia despite hurdles 🗓 2025-06-05.

👥 Labor & workforce

Huawei has experienced a slight decrease in headcount over the past months. This reduction indicates potential workforce challenges, though there is no confirmation of layoffs or salary cuts.

• Over the last 6 months, Huawei's headcount declined by 2.01%.
• Over the past year, there was a 2.89% decrease in the number of employees.

🏗️ Operational & business continuity

Huawei's ability to maintain smooth operations is impacted by operational risks primarily due to sanctions and global market challenges. These risks necessitate strategic adaptations to ensure business continuity in a competitive tech landscape.

• The U.S. crackdown heavily disrupts Huawei's AI technology development as they strive to regain market position 🗓 2025-06-06.
• Ongoing AI chip challenges highlight the operational hurdles Huawei faces in its attempt to innovate and compete globally 🗓 2025-06-09.

📜 Innovation & r&d

Despite operational challenges, Huawei continues to focus on innovation, introducing new products and solutions. Investments in R&D are seen as critical for the company’s comeback strategy in the tech war landscape.

• Huawei launched the Pura 80 smartphone series, marking a step forward in its effort to reclaim market share in China 🗓 2025-06-11.