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U.S. asks allies to drop Huawei over Chinese meddling concerns, WSJ says.

The U.S. government has been reaching out to foreign allies in an effort to persuade wireless and internet providers in other countries to avoid equipment from China's Huawei, according to The Wall Street Journal, citing people familiar with the situation. One of the concerns is centered on the use of Chinese telecom equipment in countries that host American military bases, such as Germany, Italy and Japan, according to the report. In a statement, Huawei said it has its customers' trust and was "surprised by the behaviors of the U.S. government" detailed in the article, having previously said its equipment is as safe as that of competitors such as Nokia (NOK) and Ericsson (ERIC), the Journal noted. Following previous reports about the U.S. potentially pursuing a ban on the sale of Huawei goods, Jefferies analyst George Notter had said he'd seen Ciena (CIEN), Infinera (INFN), and possibly Nokia, which all compete with both Huawei and ZTE (ZTCOY) in international markets excluding China, as potential winners from the news. He had also noted that, based on company disclosures, Huawei accounted for nearly 17% of Lumentum's (LITE) sales in FY17, about 15% of FY17 sales for Oclaro (OCLR) and 11% of FY17 sale for Finisar (FNSR). [Reference Link]:[]

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Publication:The Fly
Date:Nov 23, 2018
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