Huawei wins patent lawsuit against Samsung in China

Huawei Mate 10 Pro

Huawei is reportedly trying to secure a new deal with the AT&T rival Verizon, but political pressure may mean the firm will struggle to find a new USA partner.

Following the collapse of a deal that would have seen U.S. wireless carrier AT&T sell smartphones made by Chinese manufacturer Huawei, experts have raised the issue of a "trust deficit" between the two countries.

It looks as if the firm will launch the phone without a carrier partner - but most USA consumers buy their phones through a carrier.

AT&T has decided not to carry phones by Chinese smartphone maker Huaawei after concerns about security.

The Huawei Mate 10 and Mate 10 Pro are the upcoming flagship phones from the Chinese-based company. A second deal is also looking shaky.

Huawei, which launched the Mate 10 Pro at CES this week, a top-end model that aims to compete with Apple and Samsung, will still be able to sell products via open channels, although these account for only around 10% of the market.

While Huawei does sell its smartphones in the US, it does so without the benefit of a partnership with any of the country's four major wireless carriers, AT&T, Sprint, T-Mobile or Verizon Wireless.

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Huawei's filing of a lawsuit at home also reflects China's status as the world's largest smartphone market, as well as Beijing's efforts to nurture development of new technologies by building a strong intellectual property protection system.

Last month, members of the Senate and House intelligence committees sent a letter asking the Federal Communications Commission to review any relationship with Huawei and requested the FCC get briefed on the security concerns raised in 2012. It was also anxious about U.S. carrier deals with the smartphone maker. However, Samsung can't sell products containing the Huawei tech in China now.

"I think it's quite a big loss for us and also for the carriers, but it's more of a big loss for consumers", Richard Yu, chief of Huawei's consumer business group, said during a CES keynote.

"The US market is a unique challenge for Huawei, and although Huawei Mate 10 Pro will not be sold by US operators, we remain committed to this market now and in the future", says the official statement of Huawei. More big loss is consumers.

In June 2016 Huawei filed a further complaint relating to the same infringement at the Quanzhou Intermediate People's Court, according to Reuters. But it has never managed to crack the U.S., and the firm will have to rethink its expansion plans after this latest blow.

In 2012, Huawei and ZTE Corp (000063.SZ) (0763.HK) were the subject of a US investigation into whether their equipment provided an opportunity for foreign espionage and threatened critical USA infrastructure - a link that Huawei has consistently denied.

Huawei "worries about getting the problem fixed first and then worries about getting paid", Union Wireless' customer relations officer Brian Woody told the Journal. The UK's security watchdog also anxious about a telecoms equipment deal between BT and Huawei.

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