Huawei Ban in US: Japanese & South Korean Brands to Also Suspend Business?

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Huawei Ban
Illustration by Alex Castro

Following Google, AMD, Intel, Qualcomm and other well-known companies ending their ties with Huawei due to the ban by the US government, Panasonic has also suspended its business with the tech manufacturer.

This comes as a surprise as Panasonic is a Japanese brand, yet it is suspending its business, which comes as another blow for the Chinese firm.

In an official statement, Panasonic spokesman Joe Flynn said:

PTCL

We’ve stopped all business transactions with Huawei and its 68 group companies … that are subject to the US government ban. Yesterday an internal instruction to fully enforce that rule was issued.

Flynn further shared that both Panasonic and Huawei’s business involved the supply of “electronic parts”, but he declined to share anything more.

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Mobile carriers in Japan and Britain have decided to postpone the release of Huawei smartphones. British telecom giant EE explained that it will phase out the equipment used made by the Chinese giant in the most sensitive “core” elements of its network infrastructure.

Japan’s telecom carriers were allocated 5G spectrum by regulators just last month which was a major milestone just ahead of the launch of the high-speed wireless service. The technology can work 20 times faster than 4G and is essential for emerging technology.

South Korean Firms to End Ties with Huawei?

It is also reported that Washington is intensifying its efforts to have the Chinese firm blacklisted by South Korean firms.

US government is wanting the South Korean firms to end all ties with the Chinese tech giant. While South Korea is a US ally, it is also China’s biggest export market.

During a meeting with a South Korean counterpart LG Uplus Corp, the US State Department reportedly said  Huawei’s equipment, should “not be allowed to serve in sensitive areas in South Korea” the Chosun newspaper reported.

LG Uplus has not received any statements or requests from either South Korea’s foreign ministry or the United States regarding our use of Huawei equipment, -an LG Uplus official 

With the US backbend on excluding Huawei, Asain suppliers will be forced to choose between Chinese telecom giants and selling to American firms.

Chinese firms account for 25 of Huawei’s 92 core global suppliers, 11 are from Japan, 10 from Taiwan, 2 from South Korea and Hong Kong and 1 from Singapore. There are 33 American firms on its list of suppliers as well.

Reportedly, the US government has also sent countless messages to South Korea’s Foreign Ministry through different diplomatic channels in order to notify them that Huawei products can cause “security threats” the Chosun reports.

Stay tuned to Brandsynario for more news and updates.

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