CES 2018: Why China's Huawei Won't Be Signing a Deal with AT&T

PREMIUM Richard Yu Huawei holding phones

Huawei is the largest telecommunications manufacturer in the world, its competitor ZTE following close behind.

"The US market is a unique challenge for Huawei, and although Huawei Mate 10 Pro will not be sold by US operators, we remain committed to this market now and in the future", says the official statement of Huawei.

Yu's speech did attract the attention - and perhaps the sympathy - of many market players, industry watchers and gadget fans.

China warned yesterday that American protectionism was on the rise after congressional documents showed that Chinese technology giant Huawei's designs on the U.S. market were causing national security concerns in Washington.

The letter notes the committee's concerns "about Chinese espionage in general, and Huawei's role in that espionage in particular". As a result of its lack of deals with any major carriers, Huawei has an insignificant market share in the USA, the world's second-largest market after only China.

Meanwhile, The Information claimed to have obtained a copy of a letter that was written by the U.S. Senate and House intelligence committees and was sent to the Federal Communications Commission dated December 20, 2017.

Although OnePlus has already made a name for itself for releasing more affordable Android flagship phones, its handsets are still pretty much under the radar in the U.S. This is because the best way to gain traction in the country is by selling phones through carriers, as pointed out by Android Police.

At this stage, there is no need for the Trump administration to comment on the issue since the premise is that it involves a commercial negotiation between the two companies.

Huawei filed complaints against Samsung in both China and the United States in 2016, alleging that Samsung was infringing multiple patents relating to 4G telecommunication technologies, operating systems, and interface software. However, partners that do resell mobile devices could still access Huawei products without going through the carriers, the executive said. It can sell Mate 10 using its own channels, but that may not be a cost-effective proposition.

Because of this skepticism, including the US government's rejection of several Chinese deals, Chinese investment in the United States fell to $25 billion past year from $50 billion in 2016, according to Derek Scissors, a China expert at the American Enterprise Institute. On Tuesday, the company announced Gadot's endorsement at the Consumer Electronics Show (CES) in Las Vegas, saying Ms. Gadot will serve as the company's first "Chief Experience Officer". Now there is a renewed effort by the USA government to hamper the growth of Huawei in the US.

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