Japan’s Panasonic has taken the side of the US and halted business with Huawei in compliance with US restrictions. The ban applies to goods having 25% or more of US-originated materials, Panasonic stated in its reports. Huawei was put on the US’ list of companies that American firms cannot trade with unless they have a license. The restrictions further the US efforts to block Huawei in lieu of the trade war.
Panasonic announced that it should suspend transactions with Huawei and its 68 affiliates that were banned by the US government. There was confusion, however, when Panasonic’s Chinese website said that the company would still continue to supply Huawei.
Huawei founder Ren Zhengfei has downplayed the impact of US restrictions on Huawei, but recent signs signify a large effect. It has led to Google barring Huawei from some updates to the Android operating system. This would result in new Huawei designs not having access to some Google apps.
Japan’s Softbank and KDDI have both said they will not sell Huawei’s new handsets for now. UK-based chip designer ARM told staff it must suspend business with Huawei.