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Marketplace Morning Report

U.K. warns of Brexit shortages

Aug 19, 2019

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Marketplace Morning Report
Huawei

Huawei obstacles go global following U.S. blacklisting

Scott Tong May 23, 2019
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A Huawei logo is displayed at a retail store in Beijing on May 23, 2019.
FRED DUFOUR/AFP/Getty Images

Huawei, the Chinese telecom and tech titan blacklisted by the U.S. government on national security grounds, is facing hurdles elsewhere in the world. The company stands to lose further key international partners.

The British chip designer ARM, owned by Japanese conglomerate SoftBank, told employees in an internal memo to halt relations with Huawei, according to the BBC.

ARM makes semiconductor design technology that is critical to Huawei’s supply chain for phone and server chips.

Separately, two mobile carriers in Japan and two in the U.K. announced they would temporarily halt sales of Huawei-branded smartphones. Huawei leapfrogged Apple last year to become the world’s number two handset seller, trailing Samsung.

Huawei calls the moves “politically motivated” but says it can continue sales and service.

Analyst Paul Triolo of the Eurasia Group predicts the pressure will force Huawei to negotiate with Washington. Last year, the Chinese telecom firm ZTE faced similar supply-chain bans and cut a deal with the U.S. government to pay more than $1 billion in fines. ZTE also agreed to monitoring by the United States.

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