Published: Fri, May 24, 2019
Tech | By Constance Martin

Panasonic Denies Cutting Off Ties With Huawei Amid US Pressure Campaign

Panasonic Denies Cutting Off Ties With Huawei Amid US Pressure Campaign

"How the U.S. ban on business with Huawei will impact the Chinese firm's performance is at this point unclear, but what is clear to me is that its sales will be negatively affected", said Hiroyuki Kubota, an independent financial analyst. That prompted Google and other U.S. firms to begin suspending dealings with Huawei, and is now spurring effects for non-US companies.

Japan's Panasonic on Thursday said it would stop supplying some components to Huawei, joining a growing list of firms distancing themselves from the Chinese telecoms giant after a USA ban over security concerns.

Flynn said Panasonic's business with Huawei involves the supply of "electronic parts", but declined to provide further details.

An export ban against Huawei imposed by the administration of U.S. President Donald Trump has unfolded to involve a wide range of companies.

"We value our close relations with our partners, but recognise the pressure some of them are under, as a result of politically motivated decisions", Huawei said in a statement on Wednesday.

After the order, the Department of Commerce also placed the Chinese tech company on a "black list" that prevents US businesses from selling to Huawei without federal approval, which experts say is unlikely. USA chip producers, such as Intel and Qualcomm, have also reportedly cut their ties with Huawei.

Arm Holdings issued its statement after the BBC reported that the firm had told staffers to suspend dealings with Huawei.

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"We need to check whether our customers will be able to safely use Huawei smartphones amid concerns over Google's (future) move", said a SoftBank spokesman. Her government had already concluded that such a ban would be illegal.

The US government has been intensifying its efforts to encourage ally nations to cease using Huawei products in 5G infrastructure. Now, two major United Kingdom carriers have dropped Huawei from their 5G launch plans.

But Mr Howett thinks that a ban on Huawei could be problematic, not just for EE but for all the UK's operators, because it is in a significant part of their networks.

A similar story goes for Germany-based Infineon Technologies which says some of its supplies come from the US.

In a statement in response to questions, the US National Cyber Security Center said that "Huawei's presence in the United Kingdom is subject to detailed, formal oversight". But the list of such companies is getting bigger and bigger as we speak.

Huawei has been at the epicentre of the US-China power struggle for months. "It is a hard time for Huawei", Fu said.

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