The Chinese telecoms equipment giant Huawei Technologies Co Ltd, which has been hit by US sanctions, anticipates sales to drop about 30% in 2021 and expects more hurdles in the coming year.

Rotating chairman Guo Ping stated in a New Year letter to staff on Friday that revenue for the year is likely to be 634 billion yuan ($99.48 billion).

This is a decrease of 28.9% from 2020 revenues of 891.4 billion yuan.

Guo added that while next year “would bring its fair share of obstacles,” he was pleased with Huawei’s business success in 2021.

“An unstable business environment, the politicisation of technology, and a growing deglobalization movement all present severe problems,” according to the letter, which was posted on the company’s website.

The Trump administration in the United States slapped a trade restriction on Huawei in 2019, claiming national security concerns, prohibiting the company from utilising Alphabet Inc’s Android for new handsets, as well as other vital U.S.-origin technologies.

Huawei was hampered by US sanctions, as well as lower domestic consumption owing to the coronavirus.

“We need to stick to our strategy and respond rationally to external forces that are beyond our control,” Guo said.

Huawei will continue to focus on ICT infrastructure and smart products, according to the letter.

According to Huawei’s latest earnings report, revenue plummeted 38% year over year in the third quarter. Revenue fell by over a third in the first three quarters compared to the same period last year.