US Steps Back from the Huawei Cliff, for Now

Jeannie Matthews
May 22, 2019

The founder of Chinese telecom giant Huawei said the White House's decision to ease some trade restrictions on the company will not effect business.

"In short, this license will allow operations to continue for existing Huawei mobile phone users and rural broadband networks", he said. However, the Chinese firm is restricted from placing new orders for parts and components from the United States firms to build new devices without seeking license approvals that are most likely to be denied.

Huawei Australia has moved to reassure its local smartphone customers, following the news yesterday that Google had implemented the US Government's ban on companies dealing with Huawei.

The license also allows disclosures of security vulnerabilities and for Huawei to engage in the development of standards for future 5G networks. In terms of 5G technologies, others won't be able to catch up with Huawei in two or three years.

For businesses though, this will mean little without support for Android and Google Web Services.

The US commerce department will also evaluate whether to extend the licence period after 90 days.

Fresh information reveals that the United States has delayed the ban by 90 days beginning from today which means Android OS updates can be certified existing Huawei and Honor phones. Missed opportunities threatened as many as 74,000 jobs, the foundation said.

Should Google's system no longer be available, "then the alternative option will naturally come out - either from Huawei or someone else", Abraham Liu, Huawei's representative to the European Union institutions, said at an event in Brussels on Tuesday. They may not be able to use any OS that contains copyright belonging to a US company. One result of this is Google revoking Huawei's Android license. The fallout was both quick and dramatic, with Google-which supplies Huawei with Android and associated apps and services-and other US -based firms immediately cutting Huawei off.

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"Huawei might have similar plans", said Ko Wai Yan, an IT enthusiast.

Huawei would do everything in its power to mitigate the impact of the US decisions, Liu said.

Huawei pointed out the negative impact that this ban will have on the U.S. economy.

Expect the back and forth to continue as Huawei attempts to retain its strong position in the market and the US Government tries to send strong signals both to China, and to US companies like Google who do business in Asia. The Wall Street Journal reported that Huawei CEO Ren Zhengfei says the TGL is "not a very big deal" and says that Huawei was prepared for this conflict.

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

The United States has temporarily eased trade restrictions on China's Huawei to minimize disruption for its customers, a move the founder of the world's largest telecommunications equipment maker said meant little because it was already prepared for USA action.

How much of an impact will this have on CBG's global business?

"Remember, this is an over $350bn-a-year market where U.S. companies are selling in China and that could have disastrous consequences for American businesses, especially down the profit lines".

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