Panasonic Joins Firms Stepping Away From Huawei Following US Ban

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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 in the Chinese telecoms giant Following a US ban over security Issues.

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

The moves came a day following major Japanese and British cellular carriers said they’d delay releasing new Huawei handsets, upping the pressure on the planet’s second-largest smartphone manufacturer.

In an official announcement ascribed to AFP, Panasonic stated it had announced in an”inner telling” it would”suspend trades with Huawei and its 68 affiliates which were banned by the US authorities”.

It declined to comment on”other transactions that are not prohibited by the US”.

Asked about its opinion about the information, Huawei pointed to a statement on Panasonic’s Chinese website that said the firm was providing Huawei”normally” and doing so”strictly abiding by the relevant laws and regulations of countries and regions in which Panasonic is current”.

Washington’s constraints affect products made fully or partly in the United States, where Panasonic manufactures some of its elements.

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

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

Economic bullying’

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

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

The moves have prompted a parade of companies to step back from dealings with Huawei, including Google, whose Android operating system powers most of the world’s smartphones.

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

China’s Foreign Minister Wang Yi denounced the US moves and said Beijing would”fight to the end” in its own trade war with Washington.

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

Telecoms giant EE, owned by BT, had been due to bring Huawei’s first 5G telephone, the Huawei Mate 20X, to Britain, but chief executive Marc Allera said Wednesday the company had”paused” the launching.

The delay would last”until we get the info and confidence and also the long-term security our clients… are likely to be supported”, he said.

‘Regrettable situation’ –

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

Vodafone soon followed suit, announcing a temporary suspension of pre-orders to get Huawei handsets.

Along with the BBC reported British company ARM, which designs processors used in most mobile devices, could cut ties with Huawei

Huawei said Wednesday that it recognised”the pressure” put on its providers, and that it was”certain this regrettable situation can 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 nation’s top carrier said it could suspend pre-orders to get a brand new cellphone from the Chinese company.

While Trump’s order effectively prohibits US companies from selling Huawei and affiliates critical components, 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 damaging for the Chinese firm, with the pullback by Google and ARM likely to be”particularly troubling” for the telecoms giant.

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

Washington has long suspected deep connections between Huawei and the Chinese army, and its movements against the firm come amid the churning trade dispute involving the world’s top two economies.

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