USA lawmakers want to help rural telecoms replace Huawei, ZTE equipment

USA lawmakers want to help rural telecoms replace Huawei, ZTE equipment

Its move came a day after British chip designer ARM said it had halted relations with Huawei to comply with the US supply blockade, potentially crippling the Chinese firm's ability to make new chips for smartphones.

A Huawei spokesperson said: "We value our close relationships with our partners, but recognise the pressure some of them are under, as a result of politically motivated decisions".

EE and Vodafone spokespersons told Mobile News they will pause the launch of 5G smartphones: the Huawei Mate 20 X 5G and the foldable Mate X.

Arm Holdings said it was "complying with the latest restrictions set forth by the United States government".

US President Donald Trump has said Huawei could be part of a trade deal between the US and China, despite branding the telecoms firm "very dangerous". That prompted Google and others to begin suspending dealings with the firm.


Huawei has vigorously denied the assertions of spying and the Trump administration allegation that the Chinese government exerts undue influence on Huawei.

Huawei faces a growing backlash from Western countries, led by the USA, over possible risks posed by using its products in next-generation 5G mobile networks.

Vodafone said in a statement that it's "pausing pre-orders" for the Mate 20X, Huawei's first phone for 5G networks, as "a temporary measure while uncertainty exists regarding new Huawei 5G devices".

The US argues the Chinese government could use Huawei products for surveillance.

Last week, the Trump administration added Huawei - the world's second largest smartphone maker - to its "entity list", which bans the company from acquiring technology from U.S. firms without government approval.


"How the USA 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 guidance needs to come from them", he said.

Mr Flynn said Panasonic's business with Huawei involves the supply of "electronic parts", but declined to provide further details. Huawei said it imports about 30% of its components, or about $11 billion annually, from American companies. "It is a hard time for Huawei", Fu said.

Furthermore, on the hardware part, the chips that run inside these laptops are made by Intel or AMD both of which are United States companies.

China has retaliated with its own levies on USA imports, but it was Washington's subsequent move against Huawei that took the trade war into a new phase, stoking fears about risks to global growth and knocking financial markets.


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