Manufacturer of Flex Electronics ‘confiscated’ $ 100 million of Huawei’s cargo in China

On Thursday, the Chinese Global Times reported that “The Flex electronics manufacturer carried over 700 million yuan worth of Chinese customer Huawei Technologies for more than a month after Washington placed Huawei on a blacklist.”

According to the report, Flex retained Huawei assets at its factory in the southern city of Zhuhai after Washington added that Huawei was on a list of entities on May 16, which bans US firms to do business with it.

Flex, which has two offices in the United States and Singapore and manufactures smartphone base stations and 5G for Huawei, did not respond promptly to an email that required comments outside of US hours and did not respond to calls at its Zhuhai office.

Guo Fulin, president of international media affairs in Huawei, told Reuters that the company has regained some 400 million yuan of goods after negotiations with Flex last month and is still trying to take the rest.

He said, “We can not understand why our Chinese factory captured our goods. This is an over-interpretation of the ban.”

The Chinese newspaper says Flex has moved away from the Huawei supply chain due to the incident that had “angered Huawei,” but Guo declined to comment on this.

In May, Huawei was added to the Entity List for reasons of national security that prevented it from buying US goods and services. According to a Goldman Sachs estimation Huawei contributed about 2.5 billion yuan, or 5 percent of the total Flex revenue in the third quarter of 2018.

While Washington has given Huawei a temporary ban on the ban, and US President Donald Trump signaled he could smooth the boundaries, has already shaken the supply chain of global technology-related Huawei business of 105 billion dollar bill that includes telecom equipment and smartphones.

The ban has also caused confusion among global companies and even academic bodies, as limitations in their engagement with Huawei were unclear. The US FedEx distribution company filed a lawsuit against the US government last month after the company’s misuse of the Huawei packages triggered a public outbreak in China./

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