Caixin
Dec 06, 2018 08:05 PM
POLITICS & LAW

Chart: Huawei’s Dependence on U.S. Suppliers

The U.S. supply chain of telecom giant Huawei Technologies Co. Ltd. could come into focus in the days ahead, after the arrest of its chief financial officer in Canada on suspicion of violating earlier American sanctions prohibiting the sale of U.S. goods to Iran. Meng Wanzhou was taken into custody on Saturday while transiting through a Canadian airport. She is being held pending a U.S. court’s request for her extradition, according to statements from Huawei and Canada.

Word has yet to emerge over whether Huawei itself is suspected of violating U.S. sanctions, or if Meng, daughter of Huawei founder Ren Zhengfei, is being held because of other relationships.

In a similar case earlier this year, Huawei rival ZTE Corp. got cut off from its U.S. suppliers under orders from Washington, which determined the company had violated the same anti-Iran sanctions. That move forced ZTE to halt operations for several months until the two sides reached a settlement, and highlighted the high reliance of Chinese high-tech firms on imported components.

The following is a map of Huawei’s major U.S. suppliers, with the largest concentration by far — about half — located in the Silicon Valley area near San Francisco.

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Graphic: Gao Baiyu/Caixin

Contact reporter Yang Ge (geyang@caixin.com)

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