US Delay to Huawei Ban Gives Tech Sector Time to Adjust

Lloyd Doyle
May 21, 2019

Of course, this should disrupt Huawei's business in all sorts of ways, since the Chinese firm would be losing suppliers across its product line-ups, despite the company's efforts to stockpile some components expecting that a ban would happen.

It follows comments from Huawei's founder, Ren Zhengfei, who played down the impact of the trade restrictions, saying his firm had made preparations for a potential ban.

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

"Answer: Huawei will continue to provide security updates and after-sales services to all existing Huawei and Honor smartphone and tablet products, covering those that have been sold and that are still in stock globally".

Google has said it will comply with the U.S. restrictions, and bar Huawei from access to some core components of Android and its proprietary services.

Tech expert Geoff Quattromani said the suspension of trade between the two companies may cause problems for Huawei users in the future.

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

Yesterday it was reported that Google, along with a slew of chipmakers, would be suspending its business operations with Huawei.

Huawei's own chip design arm Hisilicon is also targeted by the United States ban, cutting it off from critical tools it needs to continue function.

The United States temporarily eased restrictions on Huawei on Tuesday, granting it a license to buy USA goods until August 19, meaning that updates of Google apps like Gmail and YouTube can continue until then.

Huawei is on the receiving end of a USA government accusation that it engaged in bank fraud to obtain embargoed US goods and services in Iran and move money via the worldwide banking system.

While Australia has also banned Huawei from its 5G plans, the United States has struggled to sway some countries, with Britain having reportedly approved a limited role for the Chinese company to help build a 5G network in the country. "Huawei might have similar plans", said Ko Wai Yan, an IT enthusiast.

As far as life after Google for Huawei, the company is apparently working on its own operating system.

Ren told state media that Huawei was in discussions with Google on how to deal with the ban.

The Commerce Department said it will evaluate whether to extend the licence period beyond 90 days.

The technical development is just one aspect of the challenge, analysts say.

Huawei will continue to build a safe and sustainable software ecosystem, in order to provide the best experience for all users globally.

"Basically, this is a very clear attempt to cripple Huawei", he told Al Jazeera from Beijing, warning, however, of potential "disastrous consequences" for the profits of some U.S. tech giants.

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.

But now even its designs for Europe are in jeopardy - along with Huawei's hard-won status as the world's second-largest smartphone maker.

Other reports by Iphone Fresh

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