Huawei denies cutting back production amid US crackdown

Foxconn which manufacturers electronics from Apple, Huawei, Sony, Nokia, Xiaomi among others, has cut down several Huawei production lines after the smartphone maker reportedly cut back orders, reports said.

An employee sells Huawei P30 handset in a shopping centre in Bangkok, Thailand May 22, 2019. REUTERS/Soe Zeya Tun - RC182D0CC7F0 (REUTERS)

Chinese tech giant Huawei has denied reports that it has cut down smartphone manufacture, thus suspending a number of production lines at its major supplier Foxconn.

"Foxconn, the Taiwanese electronics manufacturer that assembles handsets products for many phone brands including Apple and Xiaomi, has stopped several production lines for Huawei phones in recent days as the Shenzhen company reduced orders for new phones, according to people familiar with the matter, who asked not to be named as the information is private," the South China Morning Post had reported.

The tech titan is also reassessing its target to become the world's top-selling smartphone vendor by 2020, after the US trade ban has been put in place.

"As the new situation has emerged, it is too early to say whether we are able to achieve the goal," Zhao Ming, President of Honor, one of Huawei's smartphone brands, was quoted assaying by the SCMP.

Taiwanese company Foxconn which manufacturers electronics from Apple, Huawei, Sony, Nokia, Xiaomi among others, has cut down several Huawei production lines after the smartphone maker reportedly cut back orders, reports said.

On May 15, US President Donald Trump effectively banned Huawei with a national security order.

The US publicly asked its allies to steer clear of using Huawei products over concerns that the equipment could be used by the Chinese government to obtain private information.

Huawei last week filed a motion in a US court challenging the constitutionality of the 2019 National Defense Authorization Act (2019 NDAA).

The Chinese tech giant also asked for an end to US' state-sanctioned campaign against it arguing that it would "not deliver cybersecurity". A hearing on the motion is scheduled for September 19.