Chinese tech giant Huawei said on Friday that its revenue fell in the first half of 2022, but new ventures in the auto and other industries helped offset a slump in smartphone sales under US sanctions.

Revenue fell 5.9% from a year earlier to 301.6 billion yuan ($44.8 billion) in the six months to June 30, according to the largest maker of network gear for phone and Internet carriers. It gave no profit but said its profit margin was 5%, which would be about 15 billion yuan ($2.2 billion).

Huawei Technologies Ltd., China’s first global tech brand, has been struggling ever since President Donald Trump took over the U.S. in 2019. had blocked access to processor chips and other technology. The company denies US allegations that it is a security risk and may facilitate Chinese espionage.

Headquartered in Shenzhen, near Hong Kong, Huawei has pioneered the development of network technology for autos, hospitals, mines and manufacturing. It says it is now less vulnerable to US sanctions.

“While our device business was heavily impacted, our ICT infrastructure business continued to grow,” Ken Hu said in a written statement.

The decline in sales in the first half was an improvement on the 14% decline recorded for the first three months of the year. Profit margin was up from the first quarter’s 4.3%.

Sales of Huawei’s device units, which include smartphones, fell 25.3% from a year ago to 101.3 billion yuan ($15 billion). Sales of network equipment to telecom carriers and companies increased.

Huawei reported a profit of 113.7 billion yuan ($17.8 billion) last year, but said revenue fell 28.6% from 2020.

Its auto venture has played a role in five models released by three Chinese automakers. Huawei supplies components and software for navigation, dashboard displays, vehicle systems management and other services.

Huawei, founded in 1987, says it is owned by Chinese nationals, who make up half of the 195,000 global workforce. It began announcing financial results a decade ago in an effort to address Western security concerns about the company.

Also on Friday, Huawei expressed concerns about a new US law, the “Chips and Science Act,” that promises aid to companies investing in processor chip production in the United States. It aims to reduce America’s dependence on Taiwan, which produces most of the world’s high-end chips, and China, which assembles most of the smartphones and other electronics.

Huawei said in a statement, any measure that undermines global industry cooperation, “greatly hinders scientific and technological innovation.

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