Symantec is dissolving its four year partnership with Huawei, formed to jointly produce security products.
And according to two inside anonymous sources, Symantec's split is a pre-emptive move which is being made because the US government has concerns regarding the Chinese firm. Symantec fears that its relationship with Huawei could prove a disadvantage when it comes to gaining access to classified US government information regarding cyber-threats.
Huawei's reputation as having links with the Chinese government and military is one the company has found difficult to shake off, and not just in America. Earlier this week, it was blocked from bidding on a major Australian broadband network deal due to the government's security concerns.
So Symantec is now set to sell its 49 per cent stake in the Huawei Symantec venture for a reported $530 million.
A Huawei spokesman, William Plummer, noted that "both companies had a positive experience with the joint venture."
Guo Ping, Deputy Chairman of Huawei, issued a statement to say: "I am thrilled that Huawei Symantec will become a key pillar of Huawei's ICT solutions. The integration of Huawei Symantec's innovative security and storage technology with Huawei's enterprise products will reinforce Huawei's leading position in cloud computing."
"Looking ahead, Huawei will continue to increase investment in Huawei Symantec, reaffirming its commitment to customers."
Source: The New York Times