Exclusive | Huawei prepares for US ban by checking on suppliers and activating contingency plans

Huawei Technologies, the Chinese telecoms equipment giant that has been restricted from using US technologies, is preparing for the break by checking on its suppliers and readying contingency plans.

Huawei has been checking with its non-US suppliers to verify whether they are still able to work with the company under the ban, according to people familiar with the matter, who declined to be named as the information is private.

Three companies from Huawei’s supply chain confirmed with the South China Morning Post that representatives from the Chinese company have reached out in recent days to confirm whether their products or services contain key US technologies – a circumstance that could prohibit Huawei from further working with them after being restricted from purchasing US components and technologies.

“A Huawei representative called recently and asked whether our equipment uses key technology from US vendors. We have reported the case to our headquarters in Japan and are waiting for the reply,” said a Japanese supplier of Huawei in China, who indicated other industry players have received similar calls in recent days.

Another Chinese tech company, identified as a core supplier by Huawei, also confirmed the eligibility checks from the telecoms equipment giant, adding that its businesses with Huawei would proceed smoothly since its products are not affected by the US export blacklist.

The US government last week placed Huawei and its affiliates on a trade blacklist that restricts the Shenzhen-based company from buying services and parts from US companies without approval. US President Donald Trump also signed an executive order barring US companies from using telecommunications equipment made by firms posing a national security risk. The move was widely perceived in China as the US trying to contain the rise of its technological capabilities.