Panasonic suspends its business with Huawei after US ban
In a statement, Panasonic said it had sent an internal instruction to suspend transactions with Huawei and its 68 affiliates that were banned by the US government.
Japanese electronics firm Panasonic said on Thursday it has halted the shipment of some components to China’s Huawei and has stopped all business transactions with the firm following the imposed ban from the United States (US) on the Chinese telecoms equipment maker.
In a statement, Panasonic said it had sent an internal instruction to suspend transactions with Huawei and its 68 affiliates that were banned by the US government.
The firm said the ban applies to goods that contain 25% or more US-based technology, software or materials. Panasonic supplies electronic parts to Huawei, according to a report from AFP.
Panasonic said there will be limited impact on its earnings due to the Huawei ban.
Shares of Panasonic were lower by 0.63% or 6 Japanese Yen, at 899 Japanese Yen at around 10.20am Tokyo time on Thursday.
Huawei deals with a slew of setbacks
The US blocked Huawei from buying American goods last week and global markets were thrown in a loop on Monday when Google said it would sever ties with Huawei to comply with the US ban.
Late on Monday, the US commerce department said it would postpone the implementation of its ban for 90 days to prevent a sudden disruption to businesses and to allow for companies to adjust to the changes.
Earlier in the week, British chip designer ARM said it had halted its business with Huawei to comply with the US ban. The firm would stop licensing essential technology to Huawei.
News outlets reported that the US administration was looking at imposing similar sanctions faced by Huawei on Chinese video surveillance firm Hikvision.
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