Verizon Is Said to Drop Plans to Sell Phones Made by Huawei

Verizon has dropped all plans to sell phones by Chinese Huawei, including the new Mate 10 Pro, under pressure from the U.S. government, according to Bloomberg, citing people familiar with the matter.

The move follows AT&T’s decision earlier this month not to introduce the Mate 10 Pro to the U.S. market. Huawei devices still work on both companies’ networks, but direct sales would’ve allowed them to reach more consumers than they can through third parties.

The government’s renewed concern about Chinese spying is creating a potential roadblock in the race between Verizon and AT&T to offer 5G, the next generation of super-fast mobile service. Huawei is pushing to be among the first to offer 5G-capable phone, but the device may be considered off-limits to U.S. carriers who are beginning to offer the next-generation service this year in a few cities.

U.S. security agencies and some lawmakers fear that 5G phones made by companies that may have close ties to the Chinese government could pose a security risk. The perceived threat has prompted the Trump administration to consider plans to not just keep Chinese equipment off the network, but also to nationalize the construction of a 5G system like the U.S. did with interstate highways in the 1950s. The idea was roundly blasted by industry leaders and lawmakers from both parties.