According to numbers revealed Friday, Chinese telecoms giant Huawei’s second-quarter revenue fell 38%, with smartphone sales suffering from US sanctions and the unloading of its bargain brand Honor.

Huawei is at the center of a heated economic and technology rivalry between the United States and China, following concerns raised by former President Donald Trump’s administration that the business could be used for spying.

The US has produced no evidence of espionage but has prevented Huawei from purchasing critical technologies such as microchips and has barred it from using Google’s Android operating system.

Huawei’s total revenues for the first half of the year were 320.4 billion yuan ($49.6 billion), a 29 percent decrease year on year, according to the Shenzhen-based company.

Its net profit margin was 9.8 percent, slightly higher than the same period the previous year.

Huawei’s consumer products division, which includes smartphones, reported first-half sales of 135.7 billion yuan, a 47 percent decrease from the previous year.

According to a corporate spokesperson, the reduction is due in part to the loss of Honor, which Huawei sold late last year to enable it keep access to components and survive.

Huawei’s difficulties have led it to quickly pivot into other business lines such as enterprise computing, intelligent vehicle technologies, and software.

“Our goal is to survive,” stated rotating chairman Eric Xu in an accompanying statement.

“These have been difficult times, and all of our employees have shown incredible determination and strength,” he remarked.

Huawei is the world’s largest supplier of telecom network equipment and, along with Apple and Samsung, was previously a top-three smartphone manufacturer.

However, as a result of US pressure, it has plummeted far down the smartphone rankings, according to industry watchers.

Its networking equipment has also been removed or postponed in a number of Western countries due to national security concerns.

In the first half of 2021, revenue for that segment of the firm was 136.9 billion, a 14.2 percent decrease year on year.

According to a business spokeswoman, Huawei has no plans for layoffs or stock sales.

Another source of concern for the company is the issue of chief financial officer Meng Wanzhou, the daughter of CEO and founder Ren Zhengfei, who is now fighting extradition to the United States.

Meng is accused of defrauding HSBC by falsely disclosing its ties to a company that sold telecoms equipment to Iran, putting the banking giant in violation of US sanctions against Tehran.

China imprisoned two Canadians on espionage charges just days after Meng’s arrest, which Ottawa interpreted as revenge for Meng’s incarceration.

Both Canadians have been tried, but the results of their trials are yet unclear.

The US campaign against Huawei was initiated by Trump, but the current government, led by Joe Biden, has stated that there would be no relenting.