Huawei Technology and Communication Company has another obstacle in Continuing trouble Recently where two huge banks were cut with it, according to The Wall Street Journal.
HSBC and Standard Chartered, two companies that played a key role in giving the company access to the global financial market, said they would not provide Huawei with any new financing or financing because the company is too high on risk.
HSBC's decision came last year, but Standard Chartered has moved in recent times. Huawei is under investigation from the Justice Department regarding whether it has violated US sanctions on Iran.
Huawei continues to receive its daily banking services from Citigroup. When asked about the relationship, Citigroup said it would review any new banking activity and monitor developments in the United States.
Huawei is located in about 170 countries and needs international banks to handle its funds, because Chinese banks do not have the global scale they need. Huawei has held relationships with those three banks for more than a decade.
Goldman Sachs reportedly thought of entering into business with Huawei in 2013, but decided against it due to negative reactions from the US Treasury Department.
Huawei was founded in 1987 and was previously considered a golden goose for Western banks trying to expand its influence in China, due to the company's perceived contacts with the Chinese government.
"This is the type of Standard Chartered or HSBC," a former Standard Chartered official told Reuters. "They are everywhere, and they need help everywhere."
Since 2007, the US government has been concerned that the company's communications equipment and security software could be exploited and pose a threat to US security.
On Tuesday (December 18), vice president of Huawei Denied this claim That the company poses a threat.