USA companies that supply the Chinese tech powerhouse with computer chips saw their stock prices slump Monday, and Huawei faces decimated smartphone sales with the anticipated loss of Google's popular software and services. The Aug. 19 deadline is meant to give telecom operators that rely on Huawei time to make other arrangements.
It spent about $11 billion a year ago buying components from US firms such as Micron Technology, Intel and Qualcomm, according to CNBC, about 15% of the $70 billion that Huawei spent buying components worldwide.
Embattled Chinese tech firm Huawei has accused the USA of "bullying" and said it is working with Google to fight back against potentially crippling trade restrictions.
Founder and CEO Ren Zhengfei told reporters on Sunday that his company won't bow down to the us and that it had actually been preparing for this scenario for a long time.
The license also allows disclosures of security vulnerabilities and for Huawei to engage in the development of standards for future 5G networks.
Tech expert Geoff Quattromani said the suspension of trade between the two companies may cause problems for Huawei users in the future. The company reported earlier its global sales rose 19.5% past year over 2017 to 721.2 billion ($105.2 billion). Blackberry shut down its OS in 2016, Microsoft Corp. has all but ended support for its Windows Phone system, and Samsung Electronics Co.'s Tizen is used for the company's smartwatches. Huawei consumer electronics chief Richard Yu spoke to The Information recently and said the company would be "forced to launch our own OS and ecosystem" after the United States export ban.
Huawei is said to be developing its own mobile operating system, reportedly called "HongMeng OS", which it considers a "plan B" option should Google ever completely sever ties.
Question: Will Huawei phones be able to receive Android updates?
Huawei has addressed the uncertainty and answered some of the questions emerging in the minds of users following Google's restriction. "For users of our services, Google Play and the security protections from Google Play Protect will continue to function on existing Huawei devices", a Google spokesperson told Gizmodo Australia in a statement.
"The current practice of USA politicians underestimates our strength", Ren said, according to transcripts from state-run media.
Huawei Founder and CEO Ren Zhengfei at a session of the World Economic Forum (WEF) annual meeting in Davos on January 22, 2015.
The U.S. claims Huawei is a cybersecurity risk and has targeted it against the backdrop of a wider battle with China over economic and technological pre-eminence that has included tariffs on billions worth of trade and limits on business.
The White House has also undertaken a number of efforts to counter Huawei and other Chinese tech firms in the USA, banning the use of their smartphones on United States military bases and banning American firms from using their telecom equipment.
Last year, nearly half of the 208 million phones Huawei shipped is directed to outside mainland China.
One wildcard is Europe where Huawei has significant business with carriers, for whom a supplier shift would be costly.
The US late last night scaled back the trade ban, granting firms a temporary licence to help minimise disruption for customers.