Huawei Looks For More Investments and Product Purchases in South Korea Due to US Sanctions
The sanctions in the United States have made Chinese telecom giant Huawei look at South Korea for its rising demand for telecom and smartphone equipment. The company has also vowed to raise its investments in South Korea, according to the head of global media and communications at the company Karl Song Kai.
Huawei is the world’s second-biggest smartphone manufacturer and number 1 when it comes to telecom equipment. However, US sanctions have disrupted its operations considerably. The company announced that it is going to bump up its purchases from South Korea to $11.1 billion this year from $10.6 billion in 2018.
Karl Song Kai stated,
As (the) U.S. (is) getting close-minded, I believe this is an opportunity for other countries such as South Korea. In 2020, we’ll buy more Korean-made products and invest more in South Korea.
While Huawei has been banned from the United States, additional sanctions barred American companies from selling chips and other materials.
Hence, Huawei has found it increasingly more logical to source those products from South Korea. Other than South Korea, vendors from many other nations have also been roped in by the company. The head of the company’s operations in South Korea, Shawn Meng, stated that the country is one of the most important markets for Huawei.