BEIJING — Chinese telecommunications giant Huawei said Friday it expects revenue for this year will come in at 634 billion yuan ($99 billion), a 28.9% drop from a year ago.

U.S. sanctions have caused the company to suffer, as well as a shortage in semiconductors and a worldwide slump in smartphone demand.

Huawei has lowered its revenue estimate for 2021 to 313.6 billion Yuan in the second half, compared with 320.4 billion.

The company reported 891.4 billion yuan in revenue in 2020, up 3.8% from the previous year.It’s much less than the 19.1% annual increase in revenue for 2019, at 858.8 million yuan.

Friday’s publication was made possible by Guo Ping, Huawei Rotating Chairman. He wanted employees to continue pressing forward.

Although the reasons were not specified, the letter noted the “serious difficulties” posed by an “unpredictable business environment”, the “politization of technology and growing deglobalization. CNBC was able to see the English version.

Guo said that the carrier business was stable and robust, while our enterprise business saw solid growth. Guo also stated that our device business expanded quickly into new areas.

Guo indicated that Guo’s company has a number of goals for next year. These include increasing its efforts to build up and attract talent• Developing automotive-related technologies.

Huawei made an announcement last week the first electric car with its HarmonyOS operating system would likely begin deliveries in late February.

Huawei usually releases their more in-depth annual reports in March.

The first half 2021 figures showed that the two biggest business segments, carrier and consumer, experienced sharp declines year over year. The much smaller business segment, known as the enterprise business has seen a significant increase in its size. central to Huawei’s growth strategyIt grew to 6.6 trillion yuan.

Trump administration placed Huawei on a blacklist in 2019 that prohibited American firms from selling technology to China. This was due to national security concerns. Huawei claims it does not pose a security threat.

These restrictions aren’t being lifted, but other tensions have been created between Huawei and U.S. governments.

CFO Meng Wanzhou, daughter of founder Ren Zhengfei, returned to work at the company’s headquarters in ShenzhenAfter reaching an agreement regarding wire fraud, this fall was marked by the signing of a memorandum with the U.S. government.

Meng was fighting extradition from Vancouver to the U.S., and she was detained in December 2018. The majority of her time under house arrest was spent in the past three years. 10 million Canadian dollar ($7.9 million) bail conditionsShe was allowed to leave during the day, with security tracking.