Huawei’s sup­pli­ers un­harmed by CFO’s ar­rest, an­a­lyst says

China Daily - - FRONT PAGE - By MA SI [email protected]­nadaily.com.cn

The “un­rea­son­able” treat­ment of Huawei Tech­nolo­gies Co by the United States won’t harm the com­pany’s part­ner­ships with sup­pli­ers, as a ro­bust do­mes­tic mar­ket and its tech­no­log­i­cal com­pet­i­tive­ness will help it over­come chal­lenges, an in­dus­try an­a­lyst said on Fri­day.

Wang Yan­hui, sec­re­tary-gen­eral of the Mo­bile China Al­liance, said US in­ter­fer­ence with the global tele­com mar­ket is giv­ing Huawei a hard time over­seas, but the tem­po­rary dif­fi­culty, if prop­erly han­dled, won’t harm the com­pany’s long-term busi­ness.

“China has a huge do­mes­tic 5G mar­ket and its ef­forts to ac­cel­er­ate con­struc­tion of a na­tion­wide net­work will bring op­por­tu­ni­ties to Huawei,” Wang said.

On Thurs­day night, China said that it had of­fi­cially al­lo­cated cer­tain ra­dio fre­quency spec­tra to the coun­try’s big three tele­com car­ri­ers for the con­struc­tion of a na­tion­wide 5G net­work, a key step to quicken the roll­out of the su­per­fast tech­nol­ogy.

The move sent shares of Huawei’s Chi­nese sup­pli­ers climb­ing on Fri­day. Tongyu Com­mu­ni­ca­tion, for in­stance, surged more than 5 per­cent in Shen­zhen. An in­dex track­ing 5G-re­lated Chi­nese com­pa­nies also rose by 1.75 per­cent at the close of trad­ing on Fri­day, ac­cord­ing to fi­nan­cial in­for­ma­tion provider Wind Info.

The news came af­ter Cana­dian po­lice ar­rested Huawei’s chief fi­nan­cial of­fi­cer, Meng Wanzhou, at the re­quest of the US, on Dec 1. The two coun­tries did not spec­ify the rea­son for the de­ten­tion.

On Fri­day, For­eign Min­istry spokesman Geng Shuang said Meng is a Chi­nese ci­ti­zen, in re­sponse to for­eign me­dia ques­tions about her iden­tity.

Geng also called for more ef­fort by Japan to cre­ate a level play­ing field for Chi­nese com­pa­nies, and en­cour­aged the coun­try not to dam­age mu­tual trust and friend­ship when asked about me­dia re­ports that Japan will ban gov­ern­ment pur­chases of prod­ucts made by Huawei and an­other Chi­nese com­pany, ZTE.

On Thurs­day night, Huawei said in a let­ter to its global sup­pli­ers that the US had made some ac­cu­sa­tions against the com­pany re­cently, and Huawei has clar­i­fied many times that it strictly com­plies with all ap­pli­ca­ble laws and reg­u­la­tions in its global busi­ness oper­a­tions.

China has a huge do­mes­tic 5G mar­ket and its ef­forts to ac­cel­er­ate con­struc­tion of a na­tion­wide net­work will bring op­por­tu­ni­ties to Huawei.” Wang Yan­hui, sec­re­tary-gen­eral of the Mo­bile China Al­liance

“It is un­rea­son­able of the US gov­ern­ment to use these sorts of ap­proaches to ex­ert pres­sure on a busi­ness en­tity. They are against the spirit of a free econ­omy and fair com­pe­ti­tion. Nev­er­the­less, re­gard­less of how un­rea­son­able their ap­proach be­comes, the part­ner­ships we have with our global sup­pli­ers will stay un­changed,” Huawei said.

The Shen­zhen-based com­pany is the world’s se­cond-largest smart­phone ven­dor and a lead­ing maker of tele­com equip­ment. It has more than 2,000 com­po­nent and ser­vice sup­pli­ers, ac­cord­ing to a re­port by Gu­osen Se­cu­ri­ties.

In Novem­ber, Huawei un­veiled a list of its 92 core sup­pli­ers for the first time, 33 of which are from the US, 11 from Japan and four from Ger­many. Two Swiss com­pa­nies and two South Korean com­pa­nies are also among the sup­pli­ers.

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