US-China trade tensions continue to rattle global markets, with the US campaign against Chinese technology giant Huawei being seen as the latest proxy fight in the war. This is now affecting SA's telecommunications sector, which relies heavily on equipment from the Chinese.
This week, US authorities brought formal charges against Huawei - the largest suppliers of networking equipment globally and second-largest smartphone maker after Samsung - accusing it of stealing trade secrets and violating sanctions against Iran.
Huawei said in a statement: "The company denies that it or its subsidiary or affiliates have committed any of the asserted violations of US law set forth in each of the indictments . and believes the US courts will ultimately reach the same conclusion."
The potential impact of the dispute between China and the US could have a knock-on effect for South African ICT companies, some of which are already reviewing their relationship with Huawei.
Taahir Joosub, a trader at Unum Capital, said: "Huawei installs roughly 70% of the 4G network infrastructure in Africa."
After the US government's ban in 2018 of Huawei devices, citing potential spying by the Chinese government through the devices, countries such as New Zealand and Australia have also issued bans against the tech company.
Closer to home, UK-based Vodafone - Vodacom's majority shareholder - last week said it was halting business with Huawei, pending the outcome of investigations...