Huawei’s revenue rose for the first time in years. The organization struggled with trade bans in the United States and Europe since 2018. Earnings declined over time, but the most recent quarter was surprisingly strong.

Revenue rose to 170.6 billion yuan (about €25 billion), up 1 percent year-over-year. The increase is a milestone for Huawei, whose revenue has steadily declined since the end of 2020. The United States blacklisted the organization in the same year. Several European member states barred Huawei out of fear for Chinese state espionage.

Revenues declined, but the financial situation appears stable for now. “Our device business was heavily impacted, but the ICT infrastructure business continued to grow steadily”, Chairman Ken Hu said in a statement. “Going forward, we will leverage trends in digitization and emissions reduction to continue to create value for our customers and partners.”

Cloud revenue grew the fastest. Huawei’s ‘enterprise unit’ is responsible for business services and cloud infrastructure. The division’s revenue increased 28 percent to €7.9 billion in the past six months.

Network products remain the largest source of revenue. Huawei sells technology to providers and operators. The business generated over €20.6 billion in the past six months, an increase of 4 percent. Smartphone sales are still on the decline decline. Revenue declined 25 percent to €14.6 billion in the past six months.

Huawei trade war

Huawei seems to be on the road to recovery, but the future is uncertain. The organization suffers from the trade war between China and the United States. The problem goes well beyond the US. American politicians are lobbying in Europe for trade bans between China and European member states. Insiders say American officials are trying to restrict ASML’s exports to China, which could pressure Huawei’s supply chain.