Washington's decision to blacklist Huawei has repercussions around the globe, with British and Japanese companies deciding to cut off their trade links with the Chinese company, as Panasonic announced today.
Panasonic breaks ties with 69 companies
After the sledgehammer blow dealt by Google and other American technology companies, such as Qualcomm and Intel, disrupting all business with Huawei, it is Panasonic's turn to take a decision with serious repercussions for the Chinese economy.
The Japanese group's spokesman, Joe Flynn, said, "We have stopped our transactions with Huawei and its 68 affiliates that are subject to the US government's ban."
Stopping deliveries, but not all of them
Panasonic Corp has decided to suspend the delivery of certain components, without specifying which ones, to Huawei and its 68 affiliated companies. Other components will continue to be delivered to the Chinese company, at least that is what the Japanese smartphone component manufacturer has stated on its Chinese site.
We do not know at the moment on what type of components are allowed through, and will of course keep you informed of developments.
The list goes on and on
It doesn't look very good for Huawei, which is seeing its list of trading partners shrink more and more. Indeed, the day before, four British and Japanese operators announced that they would suspend the marketing of Huawei smartphones. The reason? If these smartphones no longer have American technology on board (Google, Qualcomm chips), they lose value and popularity.
ARM, which develops and licenses the ARM architecture used in the processors of virtually all smartphones on the market, also broke off its commercial relationship with the Chinese manufacturer this week.
This follows the postponement of the launch of Huawei smartphones, announced the day before by Japanese and English telephone operators.