Huawei ends its oldest major sports sponsorship deal over Australia ‘trade war’
- The Chinese telecoms giant will continue as one of the minor sponsors of the Canberra Raiders, as the rugby team searches for a replacement major sponsor
- China has made lifting Australia’s ban on Huawei’s participation in essential communications infrastructure a condition of turning around strained bilateral relations
Chinese telecommunications giant Huawei Technologies is ending its oldest major sporting sponsorship deal, saying on Monday that it was breaking its contract with an Australian rugby league team after nine years because of a “great trade war” between China and Australia.
Australia has barred Huawei, the world’s largest telecoms equipment maker and one of the biggest global smartphone vendors, from involvement in a crucial national communications infrastructure in recent years, while China has ratcheted up pressure for an Australian policy reversal.
“Unfortunately as everyone knows, Huawei has been caught in the middle of a great trade war and the effects on our business is greater than we expected,” Huawei Australia’s chief corporate affairs officer Jeremy Mitchell told reporters.
Huawei will end its current financial backing of the Canberra Raiders at the end of the current National Rugby League season, because of the “negative business environment” in Australia, Mitchell said. The grand final is on October 25.
Huawei will continue as one of the minor sponsors, as the team searches for a replacement major sponsor.