Huawei hit hard as US-based businesses suspend ties

Huawei hit hard as US-based businesses suspend ties

Huawei hit hard as US-based businesses suspend ties

The latest trouble for Huawei in the United Kingdom began with sanctions culminating from those mounting reports, imposed by US President Donald Trump earlier this week via executive order, preventing the company from conducting business with US technology companies.

"What we are witnessing is a potential reconfiguration of global trade as it has stood since World War II. investors should begin thinking about how sensitive their portfolios are to global supply chain-exposed shocks", Saxo Bank's head of equity strategy, Peter Garnry, wrote in a note titled: "Are you ready for a cold war in tech?"

Its move came a day after British chip designer ARM said it had halted relations with Huawei to comply with the US supply blockade, potentially crippling the Chinese firm's ability to make new chips for smartphones. "We are still making checks whether the ban applies to our products".

"No transactions with Huawei have been suspended at the moment", a Panasonic representative told Reuters.

Smartphone shipments at Huawei, the world's second-largest smartphone maker by volume, could tumble between 4% and 24% in 2019 if the ban stays put, according to Fubon Research and Strategy Analytics.

Major chipmakers from the USA are also restricting any sales of its components to Huawei.

Asked about its opinion about the news, Huawei pointed to a statement on Panasonic's Chinese Web site that said the firm was supplying Huawei "normally" and doing so "strictly abiding by the relevant laws and regulations of countries and regions where Panasonic is present". Leading Japanese telecoms firm NTT Docomo announced that it has stopped taking reservations for the phone, and is "looking into the impact of the U.S. restrictions", Docomo spokesperson Yoshikumi Kuroda said.

More pertinently, Huawei also lost support from British chip supplier ARM, forcing it to take a more serious look at using its own chip technology and accelerate work on its own operating system. The UK's biggest carrier, EE, is also delaying the introduction of Huawei's new smartphones.

Mr Allera said the company has "worked for decades with government" and "at the moment we have no instructions to change our plans", amid security fears around the use of Huawei in 5G networks.

Following Google's announcement, the United States announced it would temporarily ease the trade restrictions, allowing Huawei a 90-day license to buy usa tech, so that it can maintain existing telecoms networks and provide software updates to Huawei smartphones.

"It would be a truly Herculean effort on Huawei's part to pull it off", he said.

"We have been in touch with both companies", Rogers Communications said, adding "we will continue to share information with our customers as it becomes available".

Vodafone soon followed suit, announcing a temporary suspension of pre-orders for Huawei handsets.

And the BBC reported British firm ARM, which designs processors used in most mobile devices, would also cut ties with Huawei.

Google Now Lets You Order Food From Search, Assistant, and Maps
Kim Kardashian trademarks 'Psalm West' for future ventures