Huawei has reportedly stopped production on several of its smartphone models following strict sanctions introduced by the US government last month.
The Chinese technology business has suspended some orders to manufacturer Foxconn, causing a pause in production on several of its smartphone models, the South China Morning Post reported.
Sources with knowledge of Huawei’s supply chain were unclear on whether the drop in orders was temporary or a more permanent measure, the report said.
Donald Trump added Huawei to the US government’s Entity List last month over concerns that the company’s close relationship to the Chinese government could mean that its telecoms equipment is used for espionage.
Huawei executives have repeatedly denied any suggestion that the company’s products could be used in this way.
The company has reportedly stockpiled months worth of semiconductor chips, allowing it to continue production while shipments from US suppliers are paused.
Huawei is also developing its own smartphone operating system to replace Android, after Google was also forced to sever its relationship with Huawei. The new software is likely to be named “Ark,” according to trademark filings made by Huawei last month.
Analysts warned last week that the number of iPhones sold in China could halve if customers in the country continue an informal boycott of Apple products.