Chinese phone maker Huawei Technologies Co. Ltd. is expected to cut ties with AT&T Inc.(NYSE: T) following national security concerns and harder line on policies on issues ranging from Beijing’s role in restricting North Korea to Chinese efforts to acquire American industries. Since then, a line of Chinese acquisitions were blocked by the U.S. government, influencing firms that already have ties with Huawei that the ability to do business could be hindered.
Senator and House members are urging AT&T to cut their collaboration with Huawei due to standards for the high speed next generation 5G network as well as the use of Huawei handsets through a discount subsidiary. Concerns have also been raised over data that would available to Chinese government intelligent services that is used on any Huawei device, such as location services. The two firms have been struggling to gain a foothold in the American market due to increased government pressure on potential U.S. partners.
Now, China hopes other countries would provide a fair operating environment for Chinese companies. They hope that they can work with the U.S. to maintain a healthy and stable development of trade and business ties for the future regardless of this ending collaboration between Huawei and AT&T.