Tag Archives: Telecommunications Services (TRBC)

U.S. judge expected to rule in favor of merger of Sprint, T-Mobile: sources

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(Reuters) – A U.S. district judge is expected to rule in favor of allowing Sprint and T-Mobile to merge over the objections of a group of state attorneys general, according to two sources familiar with the matter.

A smartphones with Sprint logo are seen in front of a screen projection of T-mobile logo, in this picture illustration taken April 30, 2018. REUTERS/Dado Ruvic/Illustration

Shares of Sprint surged 69% in after hours trade and T-Mobile stock rose 8%.

U.S. District Court Judge Victor Marrero is expected to make his decision public on Tuesday, one source said.

Approval of the deal would be a high profile defeat for state attorneys general, led by New York and California, who had argued that a merger of the No. 3 and No. 4 U.S. wireless carriers would lead to higher prices, especially for customers who use prepaid plans popular with people with poorer credit.

The deal has already been approved by federal regulators.

The companies had said the deal was needed to help them build out next generation of wireless, called 5G, and better compete with sector leaders Verizon Communications Inc and AT&T Inc.

Executives from the companies, including outspoken T-Mobile Chief Executive John Legere, testified during the trial that Sprint’s business was deteriorating and would not survive if it did not merge with T-Mobile.

The two companies are expected to start talks on renegotiating the terms of their $26.5 billion merger in the next few days, two sources said.

T-Mobile parent Deutsche Telekom is keen to cut the price of the deal, arguing that Sprint’s fortunes have deteriorated since they inked their agreement, the sources added.

However, Sprint, in which Japan’s Softbank Group has a major stake, is expected to argue that T-Mobile needs Sprint in order to grow its cashflow and to boost its capacity using its spectrum, according to the sources.

There is no certainty that there will be a renegotiated deal, the sources cautioned.

The Court did not immediately respond to a request for comment. Sprint and T-Mobile both declined to comment.

One merger opponent, Gigi Sohn, a former telecoms regulator now at Georgetown Law, tweeted her displeasure with reports of the decision. “If #antitrust law doesn’t even block a 4-3 merger like this, we need to start from scratch,” she tweeted, referring to the market shrinking to three from four competitors. “I’ll have more to say tomorrow after I read the judge’s decision (through my tears).”

While a group of states decided to fight the deal in court, the federal government approved it with conditions, a decision which remain in effect.

The U.S. Justice Department approved the deal in July after the carriers agreed to sell some assets to satellite provider Dish Network Corp, which would create its own cellular network to ensure that there would still be four competitors in the market. The Federal Communications Commission signed off on the deal in October. Dish shares rose 2% after hours.

The states maintained that Dish was ill-equipped to become a competitive fourth wireless carrier.

The Wall Street Journal earlier reported that the court was expected to approve the deal on Tuesday.

Reporting by Diane Bartz in Washington and Greg Roumeliotis in New York, David Shepardson in DC and Arundhati Sarkar in Bengaluru; Editing by Shailesh Kuber, Uttaresh.V and Lincoln Feast.

Our Standards:The Thomson Reuters Trust Principles.

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Huawei CFO’s arrest at airport to be focus of Vancouver listening to

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VANCOUVER (Reuters) – Legal professionals for Huawei Chief Monetary Officer Meng Wanzhou will probably be in a Canadian courtroom on Monday to press for particulars surrounding her arrest at Vancouver’s airport practically 10 months in the past.

FILE PHOTO: Huawei’s Monetary Chief Meng Wanzhou leaves her household house in Vancouver, British Columbia, Canada, Could 8, 2019. REUTERS/Lindsey Wasson/File Photograph

Meng, 47, was detained on Dec. 1 on the request of america, the place she is charged with financial institution fraud and accused of deceptive HSBC Holdings Plc (HSBA.L) about Huawei Applied sciences Co Ltd’s [HWT.UL] enterprise in Iran. Meng, who is anticipated in court docket, has mentioned she is harmless and is preventing extradition.

The arrest has strained China’s relations with each america and Canada.

At Monday’s 10 a.m. (1700 GMT) listening to earlier than Justice Heather Holmes of the British Columbia Supreme Court docket, Meng’s protection group will request extra disclosure surrounding her detention on the airport, together with contacts between U.S. and Canadian authorities.

Meng’s attorneys argue she was unlawfully detained, searched and questioned for over three hours after she landed on a flight from Hong Kong. Below the ruse of an immigration examine, the protection claims, Canadian officers delayed her arrest and picked up proof for U.S. authorities.

Extradition proceedings in opposition to Meng ought to be halted if officers abused the method, the attorneys say. Moreover accusations of misconduct associated to her detention, they argue america is utilizing Meng for financial and political achieve, noting that after her arrest, U.S. President Donald Trump mentioned he would intervene if it might assist shut a commerce deal.

Legal professionals for Canada will reply to the demand for extra details about Meng’s arrest in court docket, in response to a Canadian Division of Justice spokesman, who added that Meng had already been supplied with “intensive disclosure, past what’s required.”

Canadian police and border officers, in response to a civil declare Meng filed earlier this yr, have mentioned they acted “lawfully and in good religion.”

Vancouver lawyer Gary Botting, who has seen a video of Meng being detained on the airport, mentioned immigration officers got here throughout as “Keystone Cops.”

“There are actual questions on whether or not her rights had been violated,” mentioned Botting, who briefed Meng’s protection group on Canada’s extradition regulation after her arrest however is not concerned with the case.

The extradition listening to itself is just not scheduled to begin till January.

Meng, the daughter of Huawei founder Ren Zhengfei, spent 10 days in jail in December however was then launched on C$10 million ($7.5 million) bail and resides in considered one of her two multimillion-dollar houses in Vancouver. She is required to put on an digital ankle bracelet and pay for safety guards.

Huawei, the world’s largest telecommunications gear maker, has been accused by america of actions opposite to nationwide safety or overseas coverage pursuits.

U.S. and Chinese language officers resumed commerce talks final week, because the world’s two largest economies attempt to negotiate a approach out of their 14-month commerce warfare.

Reporting by Karen Freifeld; Modifying by Chris Sanders and Tom Brown

Our Requirements:The Thomson Reuters Belief Ideas.

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Huawei drops lawsuit against U.S. over seized equipment: court filing

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FILE PHOTO: The Huawei logo is pictured at the IFA consumer tech fair in Berlin, Germany, September 5, 2019. REUTERS/Hannibal Hanschke

(Reuters) – China’s Huawei Technologies Co Ltd has dropped a lawsuit against the U.S. government after Washington released telecommunications equipment it had seized on suspicion of violations of export controls, according to a court filing on Monday.

Huawei [HWT.UL], which has been placed on a U.S. trade blacklist since May, had sued the Commerce Department and other U.S. government agencies for seizing its equipment in Alaska in 2017 en route back to China after a lab test in California.

Huawei said the U.S. government returned the equipment in August after confirming no export license was required and it decided to drop the suit.

It said the company was disappointed the U.S. government refused to provide a full explanation of what Huawei calls “arbitrary and unlawful” detention of the equipment for two years.

The fate of Huawei, the world’s largest telecommunications equipment maker and a national icon in China, has become crucial in an escalating trade war between Beijing and Washington.

Huawei still faces multiple criminal charges in the United States for allegedly breaking U.S. export sanctions to countries including Iran. It is trying to challenge its addition to the U.S. National Defense Authorization Act in an ongoing lawsuit, which it says had restricted its business in the United States “unconstitutionally”.

Washington says the Chinese company’s telecoms gear could be used by Beijing to spy, an allegation Huawei has denied.

The Trump administration added Huawei to the so-called entity list in May, barring it from buying needed U.S. parts and components without U.S. government approval and threatening to disrupt its operations.

Reporting by Sijia Jiang in Hong Kong; Additional Reporting by Diane Bartz in Washington; Editing by Muralikumar Anantharaman

Our Standards:The Thomson Reuters Trust Principles.

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U.S. nonetheless evaluating requests from companies to promote to China’s Huawei: officers

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FILE PHOTO: The Silicon Valley workplace of Huawei and its U.S. subsidiary Futurewei Applied sciences Inc. in Santa Clara, California, U.S., July 22, 2019. REUTERS/Lanhee Lee

WASHINGTON (Reuters) – The U.S. Commerce Division is continuous to guage requests by U.S. corporations to promote sure gear to Chinese language telecoms firm Huawei Applied sciences Co Ltd, a White Home official and Commerce Division spokesman stated Friday.

President Donald Trump earlier stated america wouldn’t do enterprise with Huawei in the meanwhile, however the White Home official stated that remark referred solely to a ban on U.S. authorities purchases of Huawei gear.

The Commerce Division course of was persevering with, stated the White Home official and the Commerce spokesman. Commerce in Could had put Huawei on a nationwide safety blacklist, successfully banning gross sales of U.S. expertise, software program and providers to the agency.

Reporting by Andrea Shalal And Roberta Rampton; Enhancing by Cynthia Osterman

Our Requirements:The Thomson Reuters Belief Rules.

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Trump roils markets with feedback on China commerce, Huawei

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WASHINGTON (Reuters) – U.S. President Donald Trump on Friday mentioned he was not able to make a cope with China and even known as a September spherical of commerce talks into query, reviving considerations on monetary markets that the bilateral dispute is unlikely to finish anytime quickly.

Trump additionally sowed confusion by saying that the US wouldn’t do enterprise with Chinese language telecoms large Huawei Applied sciences, solely to have a White Home official later make clear that he was referring to a ban on U.S. authorities purchases of Huawei gear, not requests for gross sales by U.S. firms, that are nonetheless being assessed.

“We’re speaking with China. We’re not able to make a deal – however we’ll see what occurs,” Trump informed reporters on the White Home earlier than departing for fundraisers on Lengthy Island, New York.

“China needs to do one thing, however I’m not able to do something but. Twenty-five years of abuse – I’m not prepared so quick, so we’ll see how that works out,” he mentioned.

Ties between the world’s two largest economies have deteriorated dramatically since Trump introduced on Aug. 1 that he would impose a 10% tariff on a remaining $300 billion value of Chinese language imports on Sept. 1, prompting China to halt purchases of U.S. agricultural merchandise.

America additionally this week declared China a forex manipulator after it allowed the yuan to slide beneath 7 to the greenback.

U.S. shares fell on Friday, capping every week of buying and selling that noticed huge swings and excessive quantity. All three indexes have been down greater than 1% in early buying and selling and rebounded later within the session.

The Dow Jones Industrial Common .DJI fell 90.75 factors, or 0.34%, to 26,287.44, and the S&P 500 .SPX misplaced 19.44 factors, or 0.66%, to 2,918.65.

“It has been a really risky week,” mentioned Elwin de Groot, Rabobank’s head of macro technique. “Till not too long ago, the markets’ view was that this commerce warfare will probably be resolved, however clearly now the pondering is that perhaps this isn’t the case and it might be accelerating from right here.”

The Worldwide Financial Fund on Friday mentioned China’s yuan valuation was largely in keeping with financial fundamentals, however an IMF official mentioned the fund was encouraging China to pursue a extra versatile change fee with much less intervention.

Trump stood by his administration’s forex accusation, saying that the truth that China was subsequently in a position to stem the yuan’s slide CNY=CFXS was proof of manipulation and was offsetting U.S. tariffs on Chinese language imports.

HUAWEI WAIVER PROCESS CONTINUES

Trump’s early feedback on Huawei initially dashed hopes that the U.S. Commerce Division would quickly approve some licenses for American firms to renew some gross sales to Huawei.

“We’re not going to do enterprise with Huawei,” Trump mentioned, including that it didn’t imply that will not change if a commerce deal was performed. “I actually made the choice it’s a lot easier to not do any enterprise with Huawei.”

However the Commerce Division mentioned on Friday it was nonetheless reviewing requests for particular licenses for some gross sales to Huawei. Commerce Secretary Wilbur Ross final month had mentioned choices on some licenses have been anticipated quickly.

Commerce put the telecom gear maker on a nationwide safety blacklist in Could, successfully banning gross sales of U.S. expertise, software program and companies to the agency.

Trump provided to ease a few of the restrictions throughout a gathering with Chinese language President Xi Jinping in Japan in late June in change for better Chinese language purchases of U.S. agricultural commodities whereas the 2 nations resumed commerce talks.

However a two-day assembly in Shanghai on the finish of July did not yield any important purchases by China nor progress on U.S. calls for for modifications to mental property, expertise switch and subsidy insurance policies, prompting Trump to announce his subsequent spherical of tariffs.

Trump instructed on Friday that deliberate in-person negotiations with China in Washington in September might be scrapped.

“We’ll see whether or not or not we hold our assembly in September,” he informed reporters.

FILE PHOTO: U.S. President Donald Trump speaks in regards to the shootings in El Paso and Dayton within the Diplomatic Room of the White Home in Washington, U.S., August 5, 2019. REUTERS/Leah Millis

White Home commerce adviser Peter Navarro mentioned preparations for the talks have been nonetheless happening, nevertheless.

“We proceed to plan to have the Chinese language negotiators come right here,” Navarro informed CNBC.

Reporting by Roberta Rampton and Jonas Ekblom; further reporting by Medha Singh, Eric Beech; writing by Andrea Shalal, David Lawder, and Humeyra Pamuk; enhancing by Howard Goller, Susan Thomas and Sonya Hepinstall

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Huawei unveils new OS to be used in smartphones, different units

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FILE PHOTO: A Huawei gadget is pictured within the Manhattan borough of New York, New York, U.S., July 22, 2019. REUTERS/Carlo Allegri/File Picture

DONGGUAN, China/HONG KONG (Reuters) – Huawei Applied sciences [HWT.UL] unveiled on Friday its proprietary working system to be used in smartphones and different units, as U.S. commerce curbs imposed in Could threaten to chop the Chinese language agency’s entry to essential U.S. applied sciences akin to Android.

“Concord OS is totally totally different from Android and iOS,” stated Richard Yu, head of Huawei’s client enterprise group, referring to working programs developed by Alphabet Inc’s (GOOGL.O) Google and Apple Inc (AAPL.O).

“You’ll be able to develop your apps as soon as, then flexibly deploy them throughout a variety of various units,” he advised a builders’ convention held in Dongguan in southern China, the place Huawei has constructed a lavish new campus modeled after European cities.

Concord, referred to as Hongmeng in Chinese language, is prepared to be used in smartphones however Huawei prefers to stay to Android for now to help its app builders, Yu stated, including the Honor sensible display product it plans to unveil on Saturday would be the first product utilizing the Concord OS.

He stated it could be tough for Huawei to satisfy its earlier purpose of changing into the world’s largest smartphone maker by shipments this 12 months because of the U.S. curbs.

The corporate would have been capable of ship 300 million smartphones this 12 months with out such restrictions, Yu stated.

Reporting by Sijia Jiang; Enhancing by Miyoung Kim and Muralikumar Anantharaman

Our Requirements:The Thomson Reuters Belief Rules.

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Apple faces investigation for suspected unfair competitors in Russia

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The emblem of Apple firm is seen outdoors an Apple retailer in Bordeaux, France, March 22, 2019. REUTERS/Regis Duvignau

MOSCOW (Reuters) – Apple (AAPL.O) is beneath investigation in Russia following a criticism from cybersecurity firm Kaspersky Lab and could also be abusing its dominant market place, Russia’s anti-monopoly watchdog stated on Thursday.

Watchdog FAS stated it was investigating why a brand new model of Kaspersky Lab’s Protected Youngsters utility had been declined by Apple’s working system, leading to a major loss in performance for the parental management app.

It stated Apple had launched model 12 of its personal parental management app, Display Time, which had related features to the Kaspersky program. Parental management apps enable dad and mom to regulate their kids’s cellphone and pill utilization.

Requested in regards to the Russian investigation, Apple referred Reuters to an April 28 assertion during which it stated it had not too long ago eliminated a number of parental management apps from its App Retailer as a result of they “put customers’ privateness and safety in danger.”

It stated a number of of those apps had been utilizing a “extremely invasive” expertise referred to as Cell Machine Administration (MDM) and that its use in a consumer-focused app was a violation of App Retailer insurance policies.

Kaspersky stated Apple’s App Retailer pointers allowed for a restricted use of MDM, however that it was not clear methods to get hold of Apple’s permission to take action. It additionally stated the necessities diminished the competitiveness of third social gathering builders.

Reporting by Maria Kiselyova, Nadezhda Tsydenova; writing by Tom Balmforth; modifying by Jason Neely/Keith Weir

Our Requirements:The Thomson Reuters Belief Rules.

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Samsung Electronics to launch Galaxy Fold in Sept after display screen issues

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FILE PHOTO: The Samsung Galaxy Fold cellphone is proven on a display screen at Samsung Electronics Co Ltd’s Unpacked occasion in San Francisco, California, U.S., February 20, 2019 REUTERS/Stephen Nellis

SEOUL (Reuters) – Samsung Electronics Co Ltd’s (005930.KS) first foldable smartphone, the Galaxy Fold, will go on sale from September in chosen markets after the launch was delayed by display screen issues earlier this 12 months, the corporate mentioned on Thursday.

Samsung is hoping its extremely anticipated foldable cellphone will revive flagging smartphone gross sales however its rollout has been hampered by defects in samples reported in April.

The South Korean tech big mentioned in a press release it had made enhancements to the practically $2,000 cellphone and was conducting closing assessments. Modifications included strengthening hinges which early reviewers had discovered to be problematic.

The world’s prime smartphone maker has hailed the folding design as the long run in a phase that has seen few surprises since Apple Inc’s (AAPL.O) groundbreaking iPhone was launched in 2007.

Chinese language rival Huawei Applied sciences Co Ltd has additionally introduced a folding handset, the Mate X, which is predicted to go on sale in September.

Samsung remains to be in talks with cell carriers world wide to determine on particulars of the Fold’s sale, a supply with information of the matter mentioned.

Reporting by Ju-min Park and Heekyong Yang; Modifying by Stephen Coates

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Xilinx resumes some Huawei gross sales, however decrease forecast sends shares down

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(Reuters) – Xilinx Inc (XLNX.O) mentioned it had resumed some gross sales to Huawei Applied sciences Co Ltd however forecast current-quarter income under Wall Road estimates on Wednesday, citing the affect of U.S. restrictions on promoting to the Chinese language telecommunications agency.

FILE PHOTO: A chip of Xilinx is displayed by means of a magnifying glass through the China Worldwide Import Expo (CIIE), on the Nationwide Exhibition and Conference Heart in Shanghai, China November 6, 2018. REUTERS/Aly Tune

The forecast and despatched the chipmaker’s shares down 5.78% to $125.50 in prolonged buying and selling. Xilinx makes programmable chips which might be utilized in knowledge facilities to hurry up duties like synthetic intelligence work, in addition to chips which might be utilized in 5G telecommunications base stations.

Firm executives didn’t disclose how a lot income the Xilinx derives from Huawei, however mentioned no single buyer accounted for greater than 10% of its income and that Xilinx has minimize its gross sales expectations for Huawei by greater than half.

Chief Govt Victor Peng mentioned that Xilinx stopped all gross sales to Huawei in Could when U.S. restrictions took impact. Peng mentioned that through the fiscal first-quarter ended June 29, Xilinx decided that a few of its merchandise, comparable to its older, 28-nanometer chips and a few chips not designed for 5G gear, may legally may very well be bought to Huawei.

Xilinx resumed transport these chips and has additionally utilized for licenses with the U.S. Commerce Division to renew promoting different merchandise to Huawei.

On a convention name, analysts pressed the corporate on whether or not Huawei may pace the transition to completely customized chips made by its HiSilicon unit to interchange Xilinx’s chips. Peng advised analysts he didn’t suppose that may occur shortly.

“They’re actually not going to surrender on 5G,” Peng mentioned. “They’ve architected it in sure methods. That’s not one thing that anyone may simply change on a dime.”

The corporate mentioned it expects second-quarter income of between $800 million and $850 million, under analysts’ common estimate of $852.5 million, in response to IBES knowledge from Refinitiv.

Peng advised analysts that the corporate continues to ship chips to different firms constructing out networks for 5G, the following technology of wi-fi knowledge communications, together with ZTE Corp (000063.SZ), which had beforehand been the goal of U.S. restrictions however has since had them eliminated.

Different chipmakers, comparable to Broadcom Inc (AVGO.O), have mentioned they anticipate different electronics makers to step in and ultimately fill in misplaced Huawei gross sales, however Peng advised Reuters that’s much less prone to occur available in the market for 5G gear.

“Infrastructure is simply completely different. There’s not as many individuals who can do it,” Peng advised Reuters in an interview. “It’s a well known indisputable fact that the Chinese language operators have favored the home suppliers” comparable to Huawei and ZTE, amongst others.

Flores mentioned that the corporate was “not reiterating or updating our full-year steering” for the complete fiscal 2020 yr and that its outlook was “considerably moderated by trade-related considerations.” In Could, the corporate mentioned it anticipated between $3.45 billion and $3.6 billion in income. Xilinx it’s going to give extra particulars on its full-year forecast in October.

Reporting by Munsif Vengattil in Bengaluru and Stephen Nellis in San Francisco; Modifying by Sriraj Kalluvila and Lisa Shumaker

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Huawei’s $105 billion business at stake after U.S. broadside

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HONG KONG/BEIJING (Reuters) – The latest U.S. broadside against Huawei that puts the Chinese firm on an exports blacklist threatens to rattle the global tech supply chain, linked closely to the $105 billion business of the world’s top supplier of telecoms network equipment.

The Trump administration has said it would add Huawei Technologies and 70 affiliates to its “Entity List” – a move that will likely ban the firm from acquiring U.S. components and technology without government approval, adding another incendiary element to the U.S.-China trade war.

The ban is not yet effective.

A similar U.S. ban on China’s ZTE Corp had almost crippled business for the smaller Huawei rival early last year before the curb was lifted.

Such sanctions on Huawei are, however, likely to have ramifications beyond the company itself, analysts said.

It would disrupt Huawei’s business at a minimum and all but put it out of business in an extreme, while its U.S. suppliers would also be hit, they said.

Out of $70 billion Huawei spent for component procurement in 2018, some $11 billion went to U.S. firms including Qualcomm, Intel Corp and Micron Technology Inc, and they could see that revenue disappear.

On the other hand, U.S. companies like Apple face the risk of severe retaliation from China, a key market.

“This is going to be very messy,” a China-based source at a U.S. tech company said.

It will be tough for Huawei too, the person said, noting none of its U.S. suppliers “can be replaced by Chinese ones, not within a few years, at least. By then, they are already dead”.

Revenue for the company, also the world’s second-biggest maker of smartphones, touched 721 billion yuan ($105 billion) last year, eight times ZTE’s and half the annual sales of South Korea’s Samsung Electronics Co.

But its business has come under pressure over the past year given mounting international scrutiny, led by U.S. allegations that its equipment could be used by Beijing for spying, a concern the company has said is unfounded.

Huawei’s American suppliers: tmsnrt.rs/2LO1Kxp

STOCKPILING

A range of Asian and European suppliers would also be hurt if Huawei was forced to curb production, while telecom carriers that rely on Huawei, and have largely resisted U.S. calls to bar the company, would be left scrambling just as countries race to roll out next-generation 5G mobile networks.

“Huawei being unable to manufacture network servers, for example, because they can’t get key U.S. components would mean they also stop buying parts from other countries altogether,” said an executive at a Huawei chip supplier.

“They can relatively better manage component sourcing for mobile phones because they have their own component businesses for smartphones. But server and network, it’s a different story,” the executive said.

According to brokerage Jefferies, the sanctions would mean a “nightmare for China’s 5G” too. The country, which is targeting a nationwide rollout next year, will very likely slow down its 5G push as a result, it added.

However, industry participants pointed out that Huawei had been stockpiling components such as chips to ease disruptions.

Its initial target was to build inventories of six to nine months, and it has recently been raised to 12 and, in some cases, 24 months, Jefferies said.

Shares in Huawei suppliers fell across in Asia on the news of the U.S. blacklist.

South Korea’s Samsung dropped 2.4%, SK Hynix fell 3.5%, while China’s Luxshare Precision Industry fell as much as 6.1%. Shares in ZTE also tumbled.

Huawei has said it is “ready and willing to engage with the U.S. government and come up with effective measures to ensure product security”.

Its rotating Chairman Eric Xu also told Reuters in a recent interview that “in case of unforeseen events … we definitely have our contingency plan. What we have prepared has already been used in some of our products in the Chinese market”.

Huawei has spearheaded China’s campaign to develop its own high-end technologies to reduce reliance on imports and such efforts have taken on urgency after U.S. sanctions on ZTE.

The ZTE case led to some “benefits” and “external pressures have developed into internal drivers” in China, said Wan Gang, vice chairman of China’s parliamentary advisory body.

TRADE TALKS

The pain for Huawei’s supply chain would be redoubled if the trade war put a damper on the Chinese technology industry.

“The bigger concern would be U.S. allies that used to buy Huawei’s components may not continue businesses with Huawei, because of fear of possibly upsetting the United States,” said Doh Hyun-woo, an analyst at NH Investment & Securities in Seoul.

The Trump administration’s rhetoric toward China had cooled in recent days after another round of tariffs between the world’s top two economies and a selloff on global stock markets.

Tensions escalated on Wednesday after U.S. President Donald Trump signed an executive order barring American companies from using telecommunications equipment made by firms deemed to pose a national security risk.

While the president’s order did not specifically name any country or company, U.S. officials have previously labeled Huawei a “threat”.

FILE PHOTO: Visitors walk past Huawei’s booth during Mobile World Congress in Barcelona, Spain, February 27, 2017. REUTERS/Eric Gaillard/File Photo

“The U.S. seems to have already decided to nail Huawei down,” said the China-based U.S. tech company source.

“The problem is that because there doesn’t seem to be a prospect for a trade deal in the near future, the U.S. has expedited the process of killing Huawei.”

(Story refiled to amend headline)

Reporting by Sijia Jiang in Hong Kong, Josh Horwitz in Shanghai, Ju-min Park and Heekyong Yang in Seoul, Michael Martina and Cate Cadell in Beijing, Makiko Yamazaki in Tokyo; Writing Miyoung Kim; Editing by Himani Sarkar

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