Huawei Will Always Need US Chips: Huawei CEO

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Ren, speaking after Donald Trump declared a national emergency aimed at thwarting Huawei's global 5G ambitions, told Chinese media: "The current practice of U.S. politicians underestimates our strength".

The biggest story in the tech world this week is President Trump's executive order to restrict USA companies from supplying products to Huawei.

Google confirmed on Monday it was restricting Huawei's access to the Android operating system on which the Chinese firm's mobile devices depend.

The risks for Huawei came into focus this week when Google, whose Android operating system powers most of the world's smartphones, said it would cut ties with Huawei as a result of the ban.

Huawei knows "that being a big telecom company, you have to have your own core technology eventually", Wong Kam Fai, a professor at the Chinese University of Hong Kong, told AFP.

This ban was the result of an executive order that prevents USA companies from purchasing telecommunications equipment from foreign companies that are deemed a national security risk.

Google responded to the ban by reportedly suspending its business with Huawei and dropping its licensing on Android, which prevents users from receiving critical updates. "We can not think narrow-mindedly that loving Huawei equals loving its phones". In the Commerce Department's announcement, Secretary of Commerce Wilbur Ross said, "In short, this license will allow operations to continue for existing Huawei mobile phone users and rural broadband networks".

It will now allow Huawei to buy goods from USA companies for the next ninety for the sake of network maintenance and software updates for existing Huawei devices.

Without full access to Android and popular Google services, Huawei - which has launched its products at glitzy ceremonies in major markets around the world - could find it hard to convince customers to choose its phones over those pushed by rivals.

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Its own platform, now undergoing trials, is named "HongMeng" and "will gradually replace the Android system", China's state-owned Global Times said Monday, citing other local media reports without more details.

A Huawei spokesman said the smartphones had already been certified by Google before it announced any restrictions.

Speaking to China's state media on Tuesday, Ren said the U.S. was underestimating Huawei, the world's biggest manufacturer of telecommunications equipment and the its second-biggest smartphone maker.

The temporary lift on the ban means Google will be able to send updates to its Android software to Huawei over the next 90 days, ensuring customers have access to the latest security patches. The Commerce Department then moved to blacklist Huawei and 68 related companies from doing business with United States firms.

Huawei also held talks with European wireless carriers about spreading this new app store even further, people involved in those talks said.

The technical development is just one aspect of the challenge, analysts say. On Monday, another Huawei executive told the Financial Times that this OS has already been trialled in parts of China and "can kick in very quickly".

Microsoft is still refusing to confirm whether they will be complying with Donald Trump's ban on technology support for Huawei, but sometimes actions speak louder than words.

USA firms could lose up to $56.3 billion United States in export sales over five years from stringent export controls on technologies involving Huawei or otherwise, the Information Technology & Innovation Foundation said in a report.

Huawei smartphone shipments rose 50 percent over a year earlier in the first three months of 2019 to 59.1 million, while the global industry's total fell 6.6%, according to IDC.

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