Technology

Instant Expert: The Huawei ban explained

Share
US delay to Huawei ban gives tech sector time to adjust

Japan's Panasonic said it was halting business with Huawei to comply with USA restrictions, dealing a fresh blow to the Chinese telecoms firm.

"That's just false. To say that they don't work with the Chinese government is a false statement". Vodafone said that it may be a temporary measure as they are reviewing the "uncertainty" surrounding new Huawei devices and probably Huawei itself.

After scrutinising whether it was in breach of U.S. sanctions by continuing to operate with Huawei, Panasonic announced it would trade as normal with the Chinese company.

The Osaka-based company does not have a major production site for components in the United States, but it said the ban applies to goods having 25% or more of us -originated technologies or materials.

South Korea was not the first country that the U.S. pressured into abandoning Huawei.

The Department of Information and Communications Technology of the Philippines said that there was no incident of a national security breach from the local telecommunication network using Huawei equipment.

With the use of state power, Washington's groundless crackdown on Chinese private company Huawei is typical "economic bullying", Chinese State Councilor and Foreign Minister Wang Yi said.

Huawei is allowed to buy USA goods until August 19 to maintain existing telecoms networks and provide software updates to its smartphones.

Such an egocentric approach by the United States will not win the recognition and support of the worldwide community, said Wang.

The US recently intensified its pressure on China's Huawei accusing it of installing backdoors in hardware to enable espionage and cyberattacks on behalf of Beijing, something that the tech giant denies.

As Huawei is deeply embedded in the global supply chain, "there might be other manufacturers that will be caught up in it", Foad Fadaghi, an Australian technology analyst and managing director of Telsyte, was quoted by local media as saying.

Huawei commands almost 30 percent of the global market according to industry tracker IDC, and shipped 208 million phones a year ago, including half to markets outside China. According to the company's Chinese website, Panasonic is continuing to supply Huawei as usual.

Huawei phone sales have surged in Canada over the past two years thanks to competitive pricing, a popular camera and other high-end features, said IDC Canada mobility senior analyst Steve Yang, adding that Huawei's market share jumped to about 6 per cent from less than 3 per cent over the period.

The firm's founder Ren Zhengfei has downplayed the impact of U.S. curbs on Huawei, but early signs suggest the fallout could be significant.

Share