Chinese telecommunications giant Huawei failed to strike a deal to sell its new smartphone via a US carrier. AT&T was supposed to tie up with Huawei with their flagship Mate 10 Pro device with AT&T. but the politicians of America are not in favour of the deal as the security will be compromised.
As such Huawei fell in line with scores of other companies to have strategic alliance with US business. Only last week the US blocked the $1.2bn (£880m) sale of money transfer firm MoneyGram to China’s Ant Financial, the digital payments arm of Alibaba.
It was the highest profile Chinese deal to be rejected by Washington since Donald Trump came to power (in spite of the fact that Trump’s daughter Ivanca is having strong business hold in China.)
The Mate 10 Pro – Huawei’s main competition against Apple’s iPhone and Samsung’s high-end handsets – will still be on sale in the US via sites such as Amazon. But the US smartphone market is always had a bearing on carriers.
But deals with carriers are important in the US because the majority of smartphones are purchased through carriers.AT&T was pressured to pull out of the deal after 18 members of the US Senate and House intelligence committees signed a letter to regulators expressing concerns about Chinese companies getting involved in US telecoms.
Chinese telecom firms Huawei and ZTE should be barred from any mergers and acquisitions because the two firms posed a security threat to the country according to US congressional panel.
Incidentally Huawei is the world’s number three smartphone brand behind Apple and Samsung