As Trump escalates US-China trade war, suppliers cut ties with Huawei: Page 2 of 2

May 21, 2019 //By Julien Happich
Following suit on Trump’s announced blacklisting of Chinese smartphone and networking equipment maker Huawei last Friday, an increasing number of components suppliers have announced they would stop supplying parts to the smartphone maker.

The company said it had adopted this measure to be on the cautious side and avoid potential litigations with the US, taking the time first to assess compliance issues with the US ban before potentially resuming shipments. That news alone reported by the Nikkei took a 6% toll on Infineon’s shares, and shares of other European companies such as STMicroelectronics or AMS were also hit.

Now if drying up the US supply chain were to effectively collapse Huawei, it would also directly affect China’s own 5G rollout and the global telecom network market, further impacting the country’s development.

To attenuate investors’ worries, Huawei claims it has nothing to do with espionage and has already started to develop its own chips to lessen the impact of the ban on its production, arguing it could eventually do without American chips. Korean smartphone maker Samsung seems to be the only true winner in this trade-war, retaining its strong ties with the US while winning market shares against its Chinese archrival.

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