Huawei. The problems of the Chinese company did not only affect its activity in the USA, but also that in China, and this is because products with a substantial value were blocked in the factory by a manufacturer. Flex, a company that produces smartphones and 5G telecommunications equipment for Huawei, blocked products worth 100 million dollars in a factory in China after the announcement of the sanctions imposed by the USA.
Huawei. Following negotiations between the Chinese company and Flex, the former managed to recover a little over half of the products already manufactured, the rest remaining blocked in the respective factory. Those from Huawei say that they do not understand why the products were blocked in the factory, and that Flex unjustifiably interpreted the provisions of the sanctions imposed in the USA by Donald Trump, and it is possible that the situation is not the only one of this kind.
HUGE Value Huawei Products BLOCKED due to Sanctions
Huawei. The Flex company is no longer a partner of the Chinese for manufacturing products following this incident in China, and it's easy to understand why, especially since there are still products blocked in that factory. If the value of 100 million dollars refers to the production value, then the respective products would have a value at least 5 times higher, so it is understandable why their recovery was a priority for the company in the current context.
“Electronics maker Flex has blocked goods worth about 700 million yuan ($101,85 million) to its Chinese customer Huawei Technologies for more than a month after Washington blacklisted Huawei. Guo Fulin, president of international business at Huawei, said the company has recovered about 400 million yuan worth of products after negotiations with Flex last month and is still trying to get the rest.”
Huawei. The situation itself is a very serious one, but it shows us how far the sanctions imposed in the USA by Donald Trump reach, and whenever there is room for much bigger problems than these. Although promises were made by the Americans for a quick solution to some of the problems brought by these sanctions, nothing important has been solved so far, and it is possible that this will not happen soon.
Huawei. Meanwhile, the company's growth rate decreased substantially in Q2 2019 after the application of sanctions, and it is possible that in Q3 2019 there will be no increase in revenues for global sales.
