HONG KONG (Reuters) – Electronics manufacturer Flex-held property with a value of around 700 million yuan ($101.85 million) in its Chinese client Huawei Technologies for more than a month after Washington put Huawei at a business in the black, the chinese, the Global Times reported on Thursday.
Flex-held Huawei [HWT.UL] assets in the factory in the southern city of Zhuhai, after the Washington added the Smartphone to the Entity List on the 16th of May, doesn’t allow AMERICAN companies to do business with, according to the report.
The Flex, which is dual-headquartered in the United States, and Singapore, and to produce a smartphone, and 5 g of base stations for a Smartphone, did not immediately respond to an e-mail seeking comment outside US business hours and not answering to the Operations of the office.
Guo Fulin, head of international media affairs for Huawei, told Reuters the company has collected 400 million yuan of goods, following negotiations between it and the Flex in the last one month, and is still trying to get back to the rest of us.
“No, We can’t understand why the Chinese, the factory and seized the goods. This is an over-interpretation of the rule,” he said.
The Chinese newspaper said, the Flex has been removed from the Huawei’s supply chain, the incident was an “angry Huawei mobile”, but I refused to make any comments on that.
In May, Huawei has been added to the Entity List on national security grounds, which have been excluded from the purchase of U.S. goods and services. According to the Goldman Sachs estimate, here, Huawei has contributed nearly 2.5 billion yuan, or 5 percent, of the Flex out of the total revenue in the third quarter of 2018.
While Washington has given Ascend to a temporary suspension of the ban, and the US President, Donald Trump signaled he was ready to relax its curbs, it has already been rattled by the global technology supply chain, it is bound to Huawei’s $105-billion company that spans telecom equipment and cell phones.
The ban has also led to some confusion in terms of the global corporations and academic institutions, such as the restrictions on their engagement with the Smartphone are unclear. US delivery company, FedEx, sued the U.s. government over the past month after the company’s mishandling of Smartphone packages, that caused a public uproar in China.
Reporting by Sijia Jiang; Editing by Muralikumar Anantharaman