Chinese telecommunications giant Huawei says it has not been able to strike a deal to sell its new smartphone via a United States carrier.
Now things could go a step further and remove any potential for Huawei and ZTE technology to come into contact with the USA government through the long chain of contract companies and vendors who work with the state.
The Mate 10 Pro is built to operate on GSM networks in the USA including AT&T, T-Mobile, Cricket, MetroPCS, Simple Mobile and Tracfone.
The success of this deal would have rocketed Huawei to tech stardom, as they're already the third largest smartphone vendor in the world.
Huawei's Washington-based spokesman William Plummer said on Tuesday that "privacy and security are always our first priority". Richard Yu, the CEO of Huawei Consumer Business Group, delivered a keynote Tuesday afternoon and unveiled its new smartphone, the Mate 10, and a luxury smartphone made in collaboration with Porsche Design. But it compounds the notion that Huawei is bad news for the USA, which will be particularly disappointing to its mobile division lead Richard Yu, who spoke on stage about the company's commitment to security at CES only a few days ago. According to a report via The Information, the U.S. Federal Communications Commission (FCC) sent a letter to AT&T saying that Huawei has "alleged ties to the Communist Party as well as China's intelligence and security services".
The letter said Congress has "long been concerned about Chinese espionage in general, and Huawei's role in that espionage in particular", according to the Times' report.
Gal Gadot, the Israeli actress who played the title role in the 2017 Warner Bros. movie "Wonder Woman", is the new celebrity sponsor of Chinese telecommunications company Huawei Technologies Co., Ltd. Ms. Gadot will join Huawei's marketing efforts as the company introduces its Mate10 Pro mobile phone to US market.
Huawei, the world's biggest maker of network gear used by phone companies, suffered a setback in the USA market when a congressional report in October 2013 said it was a security risk and warned telecom carriers not to use its equipment. The Commerce Department is also said to be investigating Huawei's dealings with sanctioned nations.
Gadot herself provided a statement on Huawei's website: "Partnering with an innovative brand like Huawei is incredibly exciting to me, and I look forward to playing an integral part of the company's growth in the year ahead".