Panasonic insists it has not suspended business with Huawei despite earlier statement saying US ban would be enforced
- Panasonic’s business with Huawei involves the supply of ‘electronic parts’
- The global market for components used by Huawei is worth US$70 billion
“Currently Panasonic Corp is still supplying for Huawei. The reports from online media about being out of stock are simply untrue,” the statement said.
“Huawei has always been an important partner with Panasonic Corp. We will continue to sell commodities and provide service to our Chinese clients like Huawei, according to the law and regulations of the country and region which Panasonic Corp is located. By helping China, we will help our business grow in China too.”
My way or Huawei: how US ultimatum fell flat in Southeast Asia
Huawei also released a statement thanking Panasonic for its “consistent support”.
“Panasonic is an important partner of Huawei and the two sides work closely together in various fields,” it said. “All business cooperation between Panasonic and Huawei remains in continuous and normal progress. Thanks to Panasonic for its consistent support to Huawei.
“At the same time, we would like to thank all the global supplier partners who have supported Huawei’s business development over the long time.”
However, an earlier statement from a Panasonic spokesman indicated the US ban on the Chinese firm had forced Panasonic’s hand.
“We’ve stopped all business transactions with Huawei and its 68 group companies … that are subject to the US government ban,” Panasonic spokesman Joe Flynn said. “Yesterday an internal instruction to fully enforce that rule was issued.”
Flynn said Panasonic’s business with Huawei involves the supply of “electronic parts” but declined to provide further details.
British telecoms giant EE, owned by BT, also said it would phase out the use of Huawei equipment in the most sensitive “core” elements of its network infrastructure.
Trump’s Huawei ‘ban’ gives Asian tech firms 70 billion reasons to worry
The technology, which can provide data speeds at least 20 times faster than 4G, is seen as essential for emerging technologies from self-driving cars and smart cities to AI and augmented reality. However, If underlying technology is vulnerable, it could allow hackers to exploit such products to spy or disrupt them.
In one incident, a US State Department official said in a recent meeting with a South Korean counterpart that local telco LG Uplus Corp, which uses Huawei’s equipment, should “not be allowed to serve in sensitive areas in South Korea”, the Chosun newspaper reported. The official added Huawei needs be eventually driven out of the country, if not immediately.
While South Korea is a US ally, China is its biggest export market. China took in nearly a quarter of South Korea’s total exports in the first four months of this year, according to South Korea government data.
Major Asian suppliers include Sony, Murata Manufacturing, Toshiba Memory and Fujitsu from Japan; Korea’s Samsung and SK Hynix; Taiwan’s Nanya Technology and Taiwan Semiconductor Manufacturing Company; and Singapore’s Flextronics.
The US government has repeatedly sent the message to South Korea’s Foreign Ministry through various diplomatic channels that using Huawei products could cause security problems, the Chosun reported, citing an unnamed diplomatic source in Seoul.
The US Embassy in Seoul did not immediately respond to request for comment. South Korea’s Ministry of Foreign Affairs did not have an immediate comment.
“LG Uplus has not received any statements or requests from either South Korea’s foreign ministry or the United States regarding our use of Huawei equipment,” a LG Uplus official said on Thursday.
Additional reporting by Reuters