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Panasonic 'suspends transactions' with Huawei after US ban | Panasonic 'suspends transactions' with Huawei after US ban |
(about 4 hours later) | |
Japan's Panasonic said it was halting business with Huawei to comply with US restrictions. | |
Panasonic said the ban applies to goods having 25% or more of US-originated materials, according to reports. | |
However, there was some confusion about Panasonic's position when, later in the day, its Chinese website said the firm would continue to supply Huawei. | |
Last week the US put Huawei on a list of companies that American firms cannot trade with unless they have a licence. | Last week the US put Huawei on a list of companies that American firms cannot trade with unless they have a licence. |
The restrictions mark an escalation in US efforts to block Huawei, which it says poses a security risk. | The restrictions mark an escalation in US efforts to block Huawei, which it says poses a security risk. |
"Panasonic announced in [an] internal notification that it should suspend transactions with Huawei and its 68 affiliates that were banned by the US government," the firm said in a statement provided to the BBC. | |
Later on Thursday, Panasonic appeared to contradict that position with a statement posted on its China website that said the Japanese company was continuing to supply Huawei. | |
Panasonic did not immediately respond to BBC requests for clarity. | |
It was also not clear what transactions Panasonic was suspending, or why they were subject to US restrictions. | |
Trump blacklist | |
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 US firms without government approval. | 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 US firms without government approval. |
The firm's founder Ren Zhengfei has downplayed the impact of US curbs on Huawei, but early signs suggest the fallout could be significant. | The firm's founder Ren Zhengfei has downplayed the impact of US curbs on Huawei, but early signs suggest the fallout could be significant. |
Google has barred Huawei from some updates to the Android operating system, meaning new designs of Huawei smartphones are set to lose access to some Google apps. | Google has barred Huawei from some updates to the Android operating system, meaning new designs of Huawei smartphones are set to lose access to some Google apps. |
Japan's Softbank and KDDI have both said they will not sell Huawei's new handsets for now. | Japan's Softbank and KDDI have both said they will not sell Huawei's new handsets for now. |
UK-based chip designer ARM told staff it must suspend business with Huawei, according to internal documents obtained by the BBC. | UK-based chip designer ARM told staff it must suspend business with Huawei, according to internal documents obtained by the BBC. |
Trade tensions | Trade tensions |
The US moves come as tensions with China have escalated in recent weeks. | The US moves come as tensions with China have escalated in recent weeks. |
Earlier this month, the US reignited its trade war with China by hiking tariffs, just as both sides seemed to be nearing a deal. | Earlier this month, the US reignited its trade war with China by hiking tariffs, just as both sides seemed to be nearing a deal. |
Huawei has been at the epicentre of the US-China power struggle for months. | Huawei has been at the epicentre of the US-China power struggle for months. |
Led by the US, the firm faces a growing backlash from Western countries over possible risks posed by using its products in next-generation 5G mobile networks. | Led by the US, the firm faces a growing backlash from Western countries over possible risks posed by using its products in next-generation 5G mobile networks. |
The US argues the Chinese government could use Huawei products for surveillance. | The US argues the Chinese government could use Huawei products for surveillance. |
Huawei denies such claims and says it is independent from the Chinese government. | Huawei denies such claims and says it is independent from the Chinese government. |