Huawei to put cut on investment in Australian branch

The Australian Branch of Chinese Tech giant Huawei technologies has announced to slash more jobs and investment in the country.

According to the details, the Chinese telecommunications equipment maker Huawei Technologies made this announcement due to the strained relations between Beijing and Canberra.

Jeremy Mitchell, Huawei’s chief corporate affairs officer for Australia mentioned in an email that “In simple terms, the 5G ban on Chinese tech giant has cost us 1,000 high-tech and high-wage jobs from the economy.”

“We have gone from 1,200 staff to fewer than 200 and by next year it will be lower still.”

The Chinese tech giant had terminated $72.3 million of research and development investments in Australia since the 5G ban, Mitchell said.

In 2018, Australia banned Huawei from supplying equipment for a 5G mobile network citing national security risks, a move the company criticized as being politically motivated.

Huawei last month said it would end its sponsorship of an Australian rugby league club a year earlier than expected due to a fallout in its business.

Samsung vs Huawei

It was earlier reported that Samsung Electronics’ display unit and LG Display Co Ltd expected to stop supplying panels for premium smartphones to Huawei Technologies due to U.S. restrictions Samsung Display, which counts Samsung Electronics and Apple as major customers for OLED display screens, declined comment.

LG Display said in a statement the U.S. move will have a minimal impact on the company given its limited panel shipments to Huawei, adding it will continue to diversify its customer base.

The U.S. further tightened restrictions on Huawei in August, banning suppliers from selling chips made using U.S. technology to the Chinese telecom giant without a special license.

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