Flex reportedly halt business with Huawei after seizing goods worth over $100 million

Electronics maker Flex, a partner of Huawei for many years, halted its cooperation with the company after seizing its goods says a report.

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Electronics maker Flex held up goods worth 700 million yuan ($101.85 million) of Huawei citing U.S. trade ban, reported by GlobalTimes.

In May, Huawei was placed in U.S. ‘Entity-List’ that bars the company from buying the US technologies.

“Flex and Huawei have had a long-standing and successful partnership; We have worked with them to find an agreeable solution. This change is unfortunate. However, China is and will remain a very important center of production and market for Flex,” Revathi Advaithi, CEO of Flex, said, according to WSJ.

That could put Flex’s relationship with Huawei in jeopardy. Flex, which pulled in $26.2 billion in revenue last year, made about 5 percent of its revenue from Huawei as recently as the third quarter of 2018, analysts at Goldman Sachs estimate.

Guo Fulin, president of international media affairs at Huawei, told Reuters the company has retrieved some 400 million yuan of goods after negotiations with Flex last month and is still trying to get back the rest.

“We cannot understand why their Chinese factory seized our goods. This is an over-interpretation of the ban,” he said.