Earlier this week, Huawei stated that its procurement from Japanese suppliers grew by more than 50 percent from last year. This likely occurred due to recent sanctions that the US has employed to restrict the Chinese tech giant’s supply chain, as per a Nikkei report.
Jeff Wang, Chairman of Huawei Japan, said that the rise in sourcing from the region arrived due to Japan’s “extremely important role in global supply chains.” At the moment, the company has had its relations with its suppliers strained and tested after the US further added trade restrictions on Huawei, to close any loopholes in the previous sanctions.
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Wang refrained from mentioning the issues the company is facing with the US in the online conference. However, another executive stated that “We have procured from Japan since 2018, so I believe there will be no major impact.” This seems like a watered-down rhetoric in front of the actual gravity of the situation, as we had previously reported on Huawei currently being in a ‘Survival mode’.
The senior executive further stated the company has bought in roughly 1.1 trillion yen (roughly 10.3 billion US Dollars) worth of components already from Japanese companies, which is a significant rise from 721 billion yen from back in 2018. Huawei had first set up in Japan back in 2005 and is now heavily procuring components from the region, along with Taiwan and South Korea as well.
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