Intel, AMD, Other US Suppliers Expecting Losses From Huawei Ban


This interrupts their cooperation with the Chinese telecom giant.

The latest move in the China-US trade war has seen President Trump's administration place Huawei on a list of Chinese companies that America has been barred from trading with, and Google has made a decision to comply.

The big difference is that because the App Gallery requires a Huawei ID account instead of a Google account and doesn't have any direct ties to Google or Google's Play Store, Huawei should be able to continue using the App Gallery to distribute apps to its users long after the current 90-day extension expires.

Ren insisted the move would have no effect.

"The latest news on Huawei shows that there is still room for trade negotiations with China", said Aaron Clark, portfolio manager at GW&K Investment Management.

The shocking development came after the Trump administration added Huawei to a list of companies that American firms can not trade with unless they have a licence.

Google responded to the ban by reportedly suspending its business with Huawei and dropping its licensing on Android, which prevents Huawei users from receiving critical updates.

"Retailers, carriers as well as Huawei could have a 'get out of jail free card" when it comes to liability over the decision by Google to stop Huawei smartphone customers getting access to future upgrades of the core Android OS found on all Huawei smartphones.

Huawei is the world's second-largest maker of smartphones behind Korea's Samsung. After the Trump administration's moves last week to restrict the Chinese company's ability to work with us -based suppliers, Google suspended Huawei's Android license - a move that would make it impossible for Huawei-built phones to get software and security updates while also cutting off access to Google-built apps like Gmail and services like the Google Play store.

"The Temporary General License grants operators time to make other arrangements and the Department space to determine the appropriate long term measures for Americans and foreign telecommunications providers that now rely on Huawei equipment for critical services", said Secretary of Commerce Wilbur Ross.

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The temporary licence suggests changes to Huawei's supply chain may have immediate, far-reaching and unintended consequences for its customers. "This is not a capitulation".

United States intelligence believes Huawei is backed by the Chinese military and that its equipment could provide Beijing's intelligence services with a backdoor into the communications networks of rival countries. He added that the 90-day extension doesn't have much impact and the company's ready to tackle the ban.

"We can not be isolated from the world", Ren said, stressing that he did not see a situation where Huawei would be cut off completely from U.S. supply. This is also an escalation of Trump's trade war with China.

Huawei has bracing for such a ban after the company watched fellow Chinese telecom ZTE struggle with a similar blacklisting maneuver past year.

Liu called the USA actions "unprecedented" and said that he hoped Huawei's customers in Europe would make their own independent decisions about whether to use Huawei's products.

The US has strong indications that European nations are coming around to the severity of the threat posed by China's Huawei Technologies Co and the dangers of incorporating its equipment into their coming 5G networks, according to an administration official.

The spat has also drawn in Canada after Huawei's Chief Financial Oficer Meng Wanzhou, who is also Ren's daughter, was detained there in December following a United States extradition request related to alleged violations of Washington's sanctions on Iran.

Michael Kovrig and Michael Spavor, two Canadians working in China, were detained shortly afterwards.

Notwithstanding the news, a sales executive at a Huawei store in Sim Lim Square - who declined to be named - said that "it is business as usual".