Panasonic Continues Shipping Supplies to Huawei

Panasonic Corp (OTC: PCRFY) said on Friday that it has not stopped shipping components to Huawei Technologies, a day after the Company originally called for a halt of transactions in line with the U.S. blacklist bank, according to Reuters.

“No transactions with Huawei have been suspended at the moment,” a Panasonic representative told Reuters. “We are still making checks whether the ban applies to our products.”

Panasonic originally told employees on Thursday to halt transactions with Huawei and its 68 affiliates subject to the U.S. ban.

Last week, the U.S. government placed Huawei under a blacklist, restricting trade with a list of American companies, unless they had a government approved license.

BBC reported that Panasonic would abide by the laws and regulations, however, as of now, the Company has not halted its operations and trade with Huawei.

The Nasdaq Composite was pressured throughout the week following the ban. In particular, the chip sector and tech giants faced weakness after the U.S. government’s decision amid escalating tensions with China.

Another tech giant that cut off ties with Huawei was Google’s parent Alphabet (NASDAQ: GOOGL). Google announced that it would restrict access to a variety of Google services such as the Android system, Google Play Store, and popular apps such as YouTube and Gmail.

Huawei is a Chinese tech giants that manufacturers telecommunication equipments and also sells consumer electronics like smartphones. The severed ties with Google could potentially affect the Company’s consumer electronics business considering many of its phones run on an Android operating system.

Essentially, Huawei’s phones would be missing key apps on its phone following the Google’s decision.

However, Huawei mentioned to CNBC that it could have its own operating system for its smartphones and laptops for use in China by the fall this year. Huawei stressed that it would create its own operating system if the Company was completed prohibited from using Google’s of Microsoft’s (NASDAQ: MSFT) systems.

“Today, Huawei, we are still committed to Microsoft Windows and Google Android. But if we cannot use that, Huawei will prepare the plan B to use our own OS,” Richard Yu, Chief Executive Officer of Huawei’s consumer business, told CNBC on Thursday.

1 Comment
  1. Zia Marcus 5 months ago
    Reply

    I believe the ban does apply to their products, Panasonic is playing with fire.

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