Huawei's future in the U.S. has just become very uncertain as a new report from Bloomberg claims Verizon has dropped plans to sell the Chinese manufacturer's smartphones in the U.S.
Bloomberg's sources claim the decision could be due to pressure from the U.S. government, which is concerned about Chinese smartphones being used for spying.
SEE ALSO: Huawei's ambitious plans to compete with the iPhone in the U.S. derailed (for now)This concern goes further than phones; the government is allegedly concerned about letting Chinese companies such as Huawei and ZTE take the lead in the area of 5G networks. Instead, the current administration is looking to deploy a nationalized 5G network in the U.S.
If the report is true, this will be a big roadblock in Huawei's plans to increase its presence in the U.S. The second largest smartphone manufacturer in the world has been very successful in China and Europe, but it hasn't been able to establish itself as a big brand in the U.S. And just weeks ago, Verizon rival AT&T reportedly dropped plans to sell Huawei's flagship phone, the Mate 10 Pro, in its stores. Huawei will instead sell the Mate 10 Pro in the U.S. through third-party retailers, such as Amazon and Best Buy.
The relationship between the U.S. government and the Chinese smartphone maker has been complicated for years. In 2012, the U.S. labeled Huawei a spy threat, which hampered Huawei's efforts to make inroads in the U.S. with its network equipment business. On the other hand, Edward Snowden's leaks have shown that the NSA has in fact been spying on Huawei for years.
Verizon declined to comment on the story. We've also contacted Huawei for comment and will update this article when we hear from them.
