Three Big Japanese Tech Companies Refuse to Use Network Equipment by Huawei And ZTE

According to a Kyodo News report on Monday, the three big Japanese tech companies will have no intention to use current network equipment as well as 5G one manufactured by two Chinese companies including Huawei Technologies Co Ltd and ZTE Corp.

The three tech companies in Japan refuse to use network equipment by Huawei and ZTE

Kyodo still kept secrets of the news sources; however, the news came out while Huawei and ZTE have been suspected of working for the Chinese government as Beijing’s spies by Washington, US, and its allies.

A few days ago, Reuters received some news regarding that the Japanese government issued a ban on purchasing network equipment manufactured by these two Chinese tech companies. This aimed to struggle against cyber-attacks and intelligence leaks.

In a statement from SoftBank Group Corp, the company revealed that it was considering the policy of the government and its possible choices. Also, the third largest tech company in Japan is reportedly using the “relatively small” amount of equipment provided by Chinese manufacturers.

KDDI Corp and NTT Docomo Inc, two among the biggest telecommunications operators in Japan, haven’t determined their development strategies yet. Huawei equipment is not now deployed in KDDI’s primary network while this company hasn’t used any network equipment from ZTE. As per Docomo, the company confirmed that it was collaborating with Huawei to develop the 5G network in the future.

Until now, both Huawei and ZTE have made no official comment on this issue. As per Huawei, the US government has banned the company out of its market while New Zealand and Australia have had no intention to partner with Huawei in the development of 5G technology due to the suspicion of the company’s involvement with the Chinese government.

Japan’s latest moves might be another difficulty that Huawei had to face since its CFO Meng Wanzhou had been arrested in Canada at the request of the US. The arrest is said to arouse a new war between two top financial markets in the world, China and the US.

Due to its most substantial relationship with Huawei, among the abovementioned tech companies, SoftBank has suffered from the sharpest fall of its shares by 3.5%. It’s clear that the company will face a lot of difficulties in the replacement of network equipment manufactured by Huawei. At the same time, KDDI and Docomo had the same destiny with shares down 1% in Japan, and down 2% in the broader market.