Huawei says Japan ‘extremely important’ after 50% rise in procurement

Huawei says Japan ‘extremely important’ after 50% rise in procurement

Huawei Technologies revealed in late August that procurement from Japanese suppliers grew by more than 50 per cent last year while the US tightened trade restrictions on the Chinese telecom equipment maker.

During an online information session, Jeff Wang, chairman of Tokyo-based subsidiary Huawei Japan, credited the gain to Japan’s “extremely important role in global supply chains”. 

Huawei’s relationships with suppliers face a new test after the US last month moved to further block its access to chips and other equipment based on US technology, part of a series of sanctions against the Chinese company that began last year.

Mr Wang did not mention the US restrictions during the online forum. But another executive appeared to play down the risk to Huawei’s supply of 5G-related components.

This article is from the Nikkei Asian Review, a global publication with a uniquely Asian perspective on politics, the economy, business and international affairs. Our own correspondents and outside commentators from around the world share their views on Asia, while our Asia300 section provides in-depth coverage of 300 of the biggest and fastest-growing listed companies from 11 economies outside Japan.

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“We have procured from Japan since 2018, so I believe there will be no major impact,” said the executive.

“(Huawei) has built up long-term and stable relationships with Japanese suppliers,” Mr Wang said.

The company bought roughly ¥1.1tn ($10.3bn) worth of components and other goods from Japanese companies last year, up from ¥721bn in 2018.

Huawei first set up its Japanese arm in 2005. The unit employed about 950 people as of June. The company also procures heavily from China, Taiwan and South Korea.

A version of this article was first published by the Nikkei Asian Review on August 27, 2020. ©2020 Nikkei Inc. All rights reserved.

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