Why Huawei needs Wall Street more than vice versa
With more banks opting to withdraw their services, the Chinese telecom giant remains reliant on the US dollar system
Just when you thought things couldn’t get any worse for Huawei Technologies, another problem pops up. HSBC Holdings and Standard Chartered won’t be providing the Chinese telecom giant with any new banking services or funding after deciding the company is too high risk, according to The Wall Street Journal. That comes after Huawei’s CFO and the daughter of its founder, Meng Wanzhou, was arrested earlier this month for allegedly conspiring to defraud banks and violating US sanctions against Iran. The fracas has further frayed ties between the US and China, already tense amid the trade war. At first blush, you might think this isn’t a big deal for the Chinese national champion: Huawei has plenty of cash (with free cash flow of about $2.5bn in 2017) and a roster of lenders that have been eager to give it money. Citigroup continues to provide the company with day-to-day banking services outside the US. But having less access to global banks should be worrying to Huawei — even if the chan...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.