The U.S. government is contacting key allies to get them to persuade telecommunications companies in their countries to avoid using equipment from China’s Huawei Technologies Co., the Wall Street Journal reported.
American officials are concerned about the use of the Chinese equipment in countries that host U.S. military bases such as Germany, Japan and Italy, the Journal reported. There is concern about China’s ability to force companies to comply with government requests, it said.
A number of major telecommunications companies directed more than 5 percent of their capital expenditure to Huawei, according to Bloomberg supply chain data. That includes Telecom Italia SpA and Japan’s NTT Docomo Inc. and KDDI Corp., the data shows.
Huawei has been pouring billions into developing 5G technology and its potential to become the global leader in the space is said to be a reason why Trump blocked the biggest ever chip deal earlier this year. –BLOOMBERG
— With assistance by David Ramli, Sze Chung Michael Chiang, and Carrie Hong