HSBC and Standard Chartered Bank cut off business with Huawei one after another: too risky

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 HSBC and Standard Chartered Bank cut off business with Huawei one after another: too risky


The report quoted people familiar with the decision as saying that the two banks were HSBC and Standard Chartered, respectively, because Huawei was too risky.

Hong Kong Central Financial Center, Standard Chartered Bank, HSBC, etc. Image Source: Visual China

Some of them disclosed that HSBC made this decision last year.

In 2016, the bank and a court-appointed agency reported Huaweis suspicious transactions to U.S. prosecutors.

In addition, Standard Chartered Bank recently made a similar decision because of an investigation into whether companies violated U.S. sanctions against Iran, which heightened concerns about Huawei by the actions of the U.S. Justice Department.

In response, Standard Chartered Bank today responded to Observer. com: We dont comment on customer relationships.

However, after the Mengwangzhou incident, Huawei has responded to the above allegations: Huawei complies with all applicable laws and regulations in the country where it operates, including those applicable to the United Nations, the United States and the European Union for export control and sanctions.

In fact, its business dealings with Huawei can be traced back to the beginning of this century.

Unlike the two banks mentioned above, according to people familiar with the situation, Citibank is still continuing to provide regular services to Huawei, but outside the United States.

However, the bank is also closely following the U.S. trend, and new business related to Huawei will also face audit.

With operations in 170 countries around the world, Huawei relies on these global banks for cash management, trade financing, operations and investment support.

The report also points out that for more than a decade, while opening up new markets in Huawei, HSBC, Standard Chartered Bank and Citibank have joined the global financial system, providing all services including foreign currency and bond financing from Western investors. By contrast, what Chinese banks can do for Huawei is confined to some markets and cannot cover the whole world. It is worth mentioning that the article also lists other financial institutions that provide financing services for Huawei, including JPMorgan Chase, Australia & New Zealand Banking Group and ING Groep. However, they refused to respond to whether they would start a new business with Huawei. Source: Responsible Editor of Observer Network: Qiao Jing_N6607

The report also points out that for more than a decade, while opening up new markets in Huawei, HSBC, Standard Chartered Bank and Citibank have joined the global financial system, providing all services including foreign currency and bond financing from Western investors.

By contrast, what Chinese banks can do for Huawei is confined to some markets and cannot cover the whole world.

It is worth mentioning that the article also lists other financial institutions that provide financing services for Huawei, including JPMorgan Chase, Australia & New Zealand Banking Group and ING Groep.

However, they refused to respond to whether they would start a new business with Huawei.