Panasonic Cuts Ties As Huawei Isolation Spreads

Japan's Panasonic said on Thursday it is suspending business with Huawei after a US ban on the Chinese firm over security fears, in a new blow for the telecoms giant.

"We've stopped all business transactions with Huawei and its 68 group companies... that are subject to the US government ban," Panasonic spokesman Joe Flynn said.

Washington's restrictions affect products made in the United States, where Panasonic manufactures some of the components it supplies to Huawei, the Japanese firm said.

The decision raises the pressure on Huawei after US President Donald Trump last week declared a national emergency to bar US companies from using foreign telecoms equipment deemed a security risk.

The decision has prompted a parade of firms to step back from dealings with Huawei, including US internet giant Google, whose Android operating system powers most of the world's smartphones.

Overnight on Wednesday mobile carriers in Japan and Britain said they were delaying releases of Huawei handsets.

Telecoms giant EE, owned by BT, was due to bring Huawei's first 5G phone, the Huawei Mate 20X, to Britain.

EE chief executive Marc Allera said the company had "paused" the launch of Huawei's 5G phones "until we get the information and confidence and the long-term security that our customers ... are going to be supported".

The group also said it would phase out the use of Huawei equipment in the most sensitive "core" elements of its network infrastructure.

Vodafone soon followed suit, announcing a "temporary" suspension of pre-orders for Huawei 5G handsets, "while uncertainty exists".

The BBC also reported that British firm ARM, which designs processors used in most mobile devices, is set to cut ties with Huawei.

ARM's products contain "US-origin technology" that would be affected by Washington's ban, the BBC said.

In Japan, KDDI and SoftBank Corp, the country's number-two and number-three carriers respectively, said they too were delaying the release of Huawei handsets to assess the impact of the US ban.

And the country's biggest carrier, NTT Docomo, said it was suspending pre-orders for a new Huawei handset, but stopped short of halting the release. (AFP)