Panasonic suspends dealing with China's Huawei following U.S. ban

24, May. 2019

TOKYO, NNA - Japanese electronics firm Panasonic Corp. will suspend supplying certain products and components to Huawei Technologies Co. after the Trump administration blacklisted the Chinese telecommunications giant and its affiliates.

The Osaka-based company said in a statement read to NNA on Thursday that it “has notified relevant internal divisions that we will stop transactions of products and components that are banned by the U.S. government.”

Panasonic would not discuss details but Japanese news reports said the components are for smartphones. Japanese mobile carriers have postponed sales of Huawei handsets, news reports said.

An electronics industry official who declined to be named told NNA that the suspension of business with Huawei is likely to have “only a limited impact” on Panasonic, as the volume of transactions of components and other products that fall under the ban is limited.

According to one of the news reports, Huawei procured roughly 700-billion-yen ($6.3 billion) worth of goods from Japanese companies last year. It said the products appear to include Sony Corp’s image sensors and memory chips from Toshiba Memory Corp.

The U.S. Commerce Department last week placed Huawei and 68 affiliates in China and other countries on its Bureau of Industry and Security Entity List, effectively blocking the Chinese telecom giant from accessing American technologies.