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ECONOMY

Containment of Huawei to deal serious blow to Japanese companies

  • December 17, 2018
  • , TV Asahi
  • JMH Summary

TV Asahi reported this morning that the GOJ policy aimed at excluding Huawei products is likely to have a serious impact on Japanese companies. While major mobile carrier Softbank, which is currently conducting tests with Huawei ahead of the launch of 5G services in 2020, has said it will abide by the government’s policy and is willing to replace Huawei technology if necessary, an expert was quoted as saying that Softbank stands to suffer great losses immediately. This expert cited data by survey firms showing that nearly 60% of Softbank’s investment in new base stations in FY17 involved Huawei equipment and replacing all of it would cost a tremendous amount. Further boycotting of Huawei smartphones worldwide would also have a serious impact on Japanese companies because these smartphones use a substantial number of Japanese-made parts. A Huawei official was quoted as saying that the company procures some 600 billion yen (approximately $5.3 billion) worth of parts from Japan annually.

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