Best Buy, the largest consumer electronics retailer in the U.S., will cut its ties with Huawei Technologies Co, based in China, reported one person who is familiar with this situation. This news comes amidst a heightened amount of scrutiny of tech firms from China in the U.S.
Best Buy is going to stop selling devices made by Huawei over the upcoming few weeks, said the person with knowledge about this issue. This is a big setback for the China-based telecommunications giant as it attempts to expand into the market across the U.S.
The move, following similar action taken by U.S. carriers including AT&T arrives as scrutiny in the U.S. of tech firms for China grows amidst tensions over trade and security between the governments of the U.S. and China.
A spokesperson for Best Buy said that the company was not able to comment on contracts that it has with specific vendors.
Huawei said through a prepared statement that it values its relationship that it has with Best Buy but was not able to discuss any details of the partnership it has with the U.S. company.
The company added that Huawei currently sells its different products through several leading retailers of consumer electronics across the U.S. adding that its products meet the highest privacy, security and engineering standards set by the industry.
Earlier in 2018, AT&T had to end its plans to offer different Huawei handsets after members of Congress lobbied against that idea with regulators, said sources. Verizon Communications also put an end to plans it has to sell Huawei products in 2017.
Last month a pair of Republican senators introduced new legislation that blocks the government of the U.S. from purchasing or leasing any telecommunications equipment made by ZTE or Huawei, citing concern that the company would use access they had to spy in officials from the U.S.
The difficult climate now in the U.S. forced Huawei to sell Mate 10 Pro, its flagship smartphone in the U.S. only using open channels.
U.S. electronics and tech website CNET.com was the first to report the end of the agreement on Wednesday.
The White House administration has become very tough on companies that may be tied to a security risk in the U.S. as part of its overall security and the protectionism being shown by President Donald Trump.