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Update | Huawei’s US market dreams ‘harmed again’ after AT&T walks away from smartphone pact

Decision scuttles Huawei’s immediate plans for the competitive US market because many American consumers buy smartphones through carriers

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Richard Yu, CEO of Huawei’s Consumer Business Group, presents the new Huawei Mate 10 high-end phone in Munich, Germany, on October 16, 2017. Now the Chinese firm has to find a new US carrier to partner with. Photo: AFP
Li Taoin Shenzhen
Huawei Technologies confirmed that a deal to distribute its smartphones through US telecommunications carrier AT&T has been called off, a further setback to the Chinese company’s plans to enter the world’s largest economy and the second time this year that a US deal by a Chinese firm has been rejected over apparent national security concerns.

“We have been harmed again,” Huawei’s consumer business unit chief executive officer Richard Yu said in a text message to the South China Morning Post.

The abrupt cancellation of the deal is the latest sign of tensions between China and the US over trade and investment, with Washington calling for trade actions against China and tightening screening of Chinese companies, especially in the hi-tech sector.

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A former Chinese commerce official said the collapse of the deal will threaten Sino-US cooperation on trade and investment, and that Beijing should consider taking countermeasures if the situation escalates.

The Shenzhen-based Huawei had been widely expected to announce its partnership with AT&T during CES in Las Vegas on Tuesday – in what would have been its first alliance with a major US carrier.

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But the company, currently the third largest smartphone vendor globally after Samsung and Apple, has cancelled a round table with media scheduled for Tuesday at CES in Las Vegas.
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