US delays Huawei ban, giving tech sector time to adjust

Where there's a will, there's Huawei: US govt already eases trade ban with 90-day reprieve

Google said Monday it would cut Huawei's access to the mobile operating system to comply with a US order that bars American companies from doing business with firms deemed a risk to national security.

The Trump administration is temporarily easing its ban on Huawei.

"The Temporary General License grants operators time to make other arrangements and (gives) 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.

Major U.S. suppliers to the company, including Intel and Qualcomm, had reportedly stopped supply to Huawei in light of Trump's executive order - but Ren said these companies have also tried to assist Huawei in the dispute.

So, in short, as things stand right now, for the next three months, Huawei can continue sourcing components and code from the United States to maintain smartphones, switches, base stations and other gear already in customers' hands.

It's no secret that Huawei had been working on its own OS. They may not be able to use any OS that contains copyright belonging to a US company.

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.

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Huawei has been exerting pressure on Samsung by eroding its volume advantage in the past two years, Windsor said. The Commerce Department then moved to blacklist Huawei and 68 related companies from doing business with USA firms. The Commerce Department also permitted Huawei to purchase U.S. products for a 90-day period.

"You could see Apple's sales plummet - one of the other realities of this trade war is that this type of worldwide stories are going to impact more and more nationalist, China and they will shy away from buying Apple and other USA products", said Tangen.

The US government on Monday gave Huawei permission to obtain technology from American organizations so that the Chinese giant can continue to maintain and fix existing deployments of its products around the world, and push US-sourced software updates to people's phones.

A foreign ministry spokesman accused Washington of misusing "state power" to hurt foreign companies and interfere in commercial markets.

Huawei's relationship with the United States has been anything but smooth over the previous year, but this past weekend saw the company take its biggest hit yet. Shipments by Samsung and No. 3 Apple declined.

It also means loss of Android licence for Huawei, forcing it to use the open source version of the operating system.

Huawei is on the receiving end of a US government accusation that it engaged in bank fraud to obtain embargoed USA goods and services in Iran and move money via the worldwide banking system. Business groups say Chinese officials are trying to reassure American companies they are welcome despite Beijing's tariff war with President Donald Trump.



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