A Japanese official has cast doubt over reports that Japan plans to exclude Chinese telecoms equipment makers Huawei Technologies and ZTE Corp. from government purchases due to security concerns.
The Japanese newspaper Yomiuri reported Friday that Tokyo might take the action following the lead of the U.S. and some other countries.
The report, citing unnamed sources, said government officials planned to meet to discuss such a move.
A senior official at the government office in charge of cybersecurity said Japan has not made such a decision. He said some new policy may be announced next week but it would likely not be what was being reported.
The dramatic arrest of a Chinese telecommunications executive has driven home why it will be so hard for the Trump administration to resolve its deepening conflict with China.
The Huawei Technologies executive, Chief Financial Officer Meng Wanzhou, faces extradition to the United States. A bail hearing was set for Friday.
In the short run, her arrest heightens skepticism about the trade truce that Presidents Donald Trump and Xi Jinping reached last weekend in Buenos Aires, Argentina.
Share markets were rattled by fears that the 90-day cease-fire won’t last.
Huawei has been a subject of U.S. national security concerns that extend well beyond tariffs or market access. Washington and Beijing are locked in a clash between the world’s two largest economies for economic and political dominance for decades to come.