Huawei had a very good 2018, and it’s likely to have a very good 2019, as well. But there’s one little thing that keeps putting a damper on the hardware maker’s global expansion plans. The U.S. and Canada have already taken action over the company’s perceived link to the Chinese government, and now Vodafone is following suit over concerns that other countries may join.
The U.K.-based telecom giant announced this week that it’s enacting a temporary halt on purchases from the Chinese hardware maker. The move arrives out of concern that additional countries may ban Huawei products, putting the world’s second largest carrier in a tricky spot as it works to roll out 5G networks across the globe.
For now, the move is focused on European markets. As The Wall Street Journal notes, there remains some possibility that Vodafone could go forward with Huawei networking gear in other markets, including India, Turkey and parts of Africa. In Europe, however, these delays could ultimately work to raise the price and/or delay its planned 5G push.
“We have decided to pause further Huawei in our core whilst we engage with the various agencies and governments and Huawei just to finalize the situation, of which I feel Huawei is really open and working hard,” Vodafone CEO Nick Read said in a statement.
Huawei has continued to deny all allegations related to Chinese government spying.