Huawei Technologies Co Ltd saw revenues fall by a third in the first nine months of the year as its smartphone business felt the impact of US sanctions.

The Chinese telecoms group reported revenue of 455.8bn yuan (GBP51.6bn) in the first three quarters to end-September, a drop of 32% compared with the same period last year.

The profit margin was 10.2%, Huawei said in a statement.

“Overall performance was in line with forecast,” said Guo Ping, Huawei’s rotating chairman. “While our B2C business has been significantly impacted, our B2B businesses remain stable.”

In 2019, former US president Donald Trump imposed sanctions that block Huawei’s access to US technology, which is affecting the Chinese group’s smartphone business.

US officials believe Huawei is a security risk that could enable Chinese spying, which the company denies, and the US government is lobbying its European allies to exclude Huawei from upgrades to their telecommunications networks.

In the UK, the government has told operators that they must limit Huawei products to 35% of their 5G networks by 2023 and removed its products completely by the end of 2027.

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