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U.S. embargo on Huawei may affect Japanese firms

By Takashi Narumi, Akiko Kato

 

NEW YORK (Kyodo) – Following a trade embargo imposed by the U.S. Trump administration on Huawei, American firms are suspending their shipments of software and electronic devices to the Chinese telecommunication giant. While the move deals a blow to the Chinese firm, it is also expected to dampen American companies’ earnings. The impact could spread to Japanese firms as well.

 

Japan’s mobile phone carriers are busy collecting information. This month NTT Docomo, KDDI and SoftBank released their summer lineups, which include Huawei handsets. But after the release the U.S. announced the decision to ban the use of foreign telecommunication products that could pose a threat to national security. The Japanese mobile carriers could be pressed to review their marketing strategies once their sales are affected. At the moment, they “decline to comment” on the matter, but a person at a leading mobile carrier said: “We can’t take action as we are not sure of how much we will be affected. We need some time to gauge whether users can continue to use [Huawei] smartphones without disruptions.” (Abridged)

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