Hong Kong — Huawei’s deal with AT&T, for the US phone company to sell its phones, has collapsed at the eleventh hour, people with knowledge of the matter said. This development is a major setback for the Chinese company’s global ambitions. A second person familiar with the discussions said security concerns had arisen, without elaborating further. AT&T was pressured to drop the deal after members of the US Senate and House intelligence committees sent a letter on December 20 to the Federal Communications Commission, citing concern about Huawei’s plans to launch consumer products through a major US telecoms carrier, online tech news site The Information reported. Huawei told Reuters on Tuesday that its flagship premium smartphone Mate 10 Pro — Huawei’s challenge to the iPhone — would not be sold in the US via a telecoms carrier but only through open channels.

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