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Panasonic cuts ties with embattled Huawei after US ban

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Huawei funded by Chinese state security, reports reveal

Japan’s Panasonic on Thursday said it would stop supplying some components to Huawei, joining a growing list of firms distancing themselves from the Chinese telecoms giant after a US ban over security concerns.

The announcement came a day after four major Japanese and British mobile carriers said they would delay releasing new Huawei handsets.

“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 told newsmen.

“Yesterday an internal instruction to fully enforce that rule was issued,” he added.

Flynn said Panasonic’s business with Huawei includes the supply of “electronic parts,” but declined to provide further details.

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

A Panasonic official declined to comment on what business the Japanese firm would continue to do with Huawei, though reports said the suspension would have a limited impact.

Last week, US President Donald Trump declared a national emergency to bar US companies from using foreign telecoms equipment deemed a security risk.

The move appeared aimed at Huawei, though the White House said no particular company or country was targeted.

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