Arm staff told they must cut all ties with Huawei - Components

Japan's Panasonic Corp yesterday said it would stop supplying some components to Huawei Technologies Co (華為), joining a growing list of companies distancing themselves from the Chinese telecoms giant after a United States ban over security concerns.

Analysts say the restrictions could be seriously damaging for the Chinese firm, with the pullback by Google and ARM likely to be "particularly troubling" for the telecoms giant.

On Monday, the US Department of Commerce issued a 90-day temporary license, effective until Aug 19, allowing "specific limited engagement in transactions involving the export, reexport, and transfer of items" to Huawei.

The removals make sense - not only will Google soon not be able to work with Huawei, but businesses probably shouldn't buy phones that might not get security updates in a few months.

Whether or not Huawei poses a security threat to the USA, the U.S. hasnt brought forth any single case or concrete proof of its claims. If business is halted, Huawei could find it hard to produce its own chips for smartphones.

The trade dispute has snowballed into a tech war, with Huawei at the epicentre of a battle for supremacy in technologies that could shape the future of the world economy, such as next-generation 5G networks in which the Chinese firm is a global leader. But now these United Kingdom carriers have announced that they are pausing pre-orders on the device. While the market has plateaued and begun to contract, Huawei has consistently gained global market share.

One former diplomat warned, "Korea is at risk once again of getting trapped between the USA and China after a dispute over a Terminal High-Altitude Area Defense battery".

"Most countries have always been highly alert to USA government acts of resorting to state power to crack down on companies in other countries, disrupt markets and obstruct mutually beneficial cooperation between other countries", Lu said.

As European countries including the UK, France, Germany, and others follow suit with the USA, enacting bans and tighter regulations on telco equipment and devices, Huawei's sales growth may take a hit. "We are still making checks whether the ban applies to our products".

According to a report by French publication 01Net, the Honor 20 Pro, which was announced earlier this week at a launch event in London, failed to complete Google's Android certification process before Trump's banhammer fell last week. "The Huawei CEO, on that at least, isn't telling the American people the truth, nor the world", Pompeo said. It also licenses graphics technology from the Cambridge-based company which is owned by Japan's SoftBank Group Corp. Some are calling this move by the USA a show of power, thus forcing the Chinese company to become more transparent.

  • Zachary Reyes