Panasonic Joins Firms Stepping Away From Huawei After US Ban

Panasonic Joins Firms Stepping Away From Huawei After US Ban

Japan’s Panasonic said Thursday it would stop Providing some components to Huawei, joining a growing list of firms distancing themselves from the Chinese telecoms giant Following a US ban on Safety concerns.

Japan’s Toshiba also announced it was temporarily halting shipments to Huawei to check whether US-made components were involved, in order to comply with Washington’s new restrictions.

The moves came a day after important British and Japanese mobile carriers said they would delay releasing new Huawei handsets, upping the pressure on the world’s second-largest smartphone maker.

In an official statement emailed to AFP, Panasonic stated it had announced in an”internal notification” it would”suspend trades with Huawei and its 68 affiliates that were banned by the US authorities”.

It declined to comment on”other transactions which aren’t prohibited by the US”.

Asked about its opinion about the news, Huawei pointed to an announcement on Panasonic’s Chinese site that said the company was supplying Huawei”normally” and doing this”strictly abiding by the relevant legislation and regulations of countries and regions in which Panasonic is present”.

Washington’s constraints affect products made entirely or partly in the USA, where Panasonic produces a number of its elements.

Toshiba meanwhile said it had temporarily stopped shipments to Huawei while it assesses if they include US-made pieces.

“We will resume shipments if we affirm our products don’t use American-made components,” spokesman Takashi Ebina told AFP.

Last week, Donald Trump declared a national emergency to bar US companies from using foreign telecoms gear deemed a safety threat.

The move appeared aimed at Huawei, though the White House said no specific company or nation was targeted.

The Commerce Department has also announced an effective ban on US companies selling or transferring US technology to Huawei.

The motions have prompted a parade of firms to resign from dealings with Huawei, including Google, whose Android operating system powers the majority of the world’s smartphones.

And on Wednesday, cellular carriers in Japan and Britain said they had been delaying releases of Huawei handsets.

“The US use of state power to exert pressure on a private Chinese company like Huawei is average financial bullying,” Wang said Wednesday in a meeting in Kyrgyzstan.

The delay will last”till we get the info and confidence and the long-term safety that our customers… are going to be encouraged”, he said.

‘Regrettable situation’ –

The team also said it would phase out the use of Huawei gear from the sensitive”core” elements of its infrastructure.

And the BBC reported British firm ARM, which designs processors used in most mobile devices, would cut ties with Huawei

Huawei said Wednesday that it recognised”the pressure” put on its suppliers, which it was”confident this regrettable situation could be resolved”.

In Japan, KDDI and SoftBank Corp, the nation’s number-two and number-three carriers respectively, said they were delaying the launch of Huawei handsets.

Along with the country’s top carrier said it could suspend pre-orders to get a new cellphone from the Chinese firm.

While Trump’s order effectively bans US businesses from selling Huawei and affiliates crucial parts, US officials provided a short reprieve this week by delaying the ban to get 90 days to prevent major disruption.

Critics say that the constraints could be severely harmful for the Chinese company, together with all the pullback from Google and ARM inclined to be”especially troubling” for the telecoms giant.

“The way the US ban on business with Huawei will affect the Chinese business’s operation is at this point unclear, but what is clear to me is the earnings will be negatively affected,” said Hiroyuki Kubota, an independent financial analyst.

Washington has long imagined deep connections between Huawei and the Chinese military, and its movements against the company come amid the churning trade dispute involving the world’s best two markets.