Taking Its Revenge, Huawei Supplier Bans Workers From Buying iPhones

Dhir Acharya - Dec 11, 2018


Taking Its Revenge, Huawei Supplier Bans Workers From Buying iPhones

Huawei's supplier, Menpad, will fine its employees if they buy iPhones. The company also has other incentives to make its staff support Huawei and ZTE.

It seems like China and the US are now not happy with other at all. Not only is there a trade war where each country imposes import tariffs on the other, but the arrest of Meng Wanzhou, Huawei CFO, has also worsened the relationship between them.

An investigation conducted by the US discovered that Meng Wanzhou took a role in the plan using the global banking system for business activities in Iran. This action is a violation to a US sanction placed on Iran.

They arrested Meng in Canada and will take her back to the US. Because of this plot, the US is likely to ban Huawei from its market.

Now, it appears that China is trying to take its revenge. According to South China Morning Post, today, Menpad – an LCD screen manufacturer based in Shenzhen and Huawei’s supplier – will fine its employees if they buy iPhones. Particularly, Menpad’s staff are not allowed to purchase an Apple’s phone at an equal price to that of the model bought.

To encourage its workers to buy phones made by China, Menpad has released a policy. Accordingly, when an employee purchases a Huawei or ZTE phone, the company will pay 15 percent of the phone cost.

Notably, ZTE also got in trouble with the US when earlier this year, the country banned the phone maker from making phones. Last year, ZTE violated US sanction when it sold $32 million worth of products that included US components to Iran without asking for permission. The company even lied to investigators about ending the dealings.

Plus, if an employee succeeds in selling to the US customers, the Menpad will double the commissions for that. Even more, the Chinese firm will increase the rebate by 100 percent when their distributors manage to land a purchase order from the US. Menpad will keep these incentives legit till December 7, 2021, three years from now.

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