Japanese telecoms firms to stop buying Huawei, ZTE equipment
Shares in Japan’s telecoms sector fell on Monday on the news of the plan, which will apply to both current and 5G technology
Tokyo — Japan’s big three telecoms operators plan not to use network equipment from China’s Huawei Technologies and ZTE, Kyodo News reported on Monday.
The plan applies to current equipment as well as upcoming fifth-generation (5G) gear, Kyodo reported without citing sources.
Japan plans to ban government purchases of equipment from Huawei and ZTE to ensure strength in its defences against intelligence leaks and cyber attacks, sources told Reuters last week.
Representatives of the three telecoms companies, NTT Docomo, KDDI and SoftBank, were not immediately available to comment on the report when contacted by Reuters.
Huawei has already been locked out of the US market and Australia and New Zealand have blocked it from building 5G networks amid concerns of possible links the firm has with China’s government. Huawei has repeatedly insisted Beijing has no influence over it.
Markets have been reeling after the news last week that Canadian officials had arrested Huawei’s CEO for extradition to the US, sparking fears the arrest would throw up another hurdle to the resolution of a trade war between the world’s biggest two economies.
SoftBank, which has a long relationship with Huawei and has partnered the firm in 5G trials, was the biggest decliner among the three telecoms companies on Monday. Its shares closed down 3.5% ahead of the Kyodo report, over concerns about the impact a backlash against Huawei could have on its business.
The benchmark index closed down 2%