Huawei: US controls have 'no impact,' talking to Google

Huawei: US controls have 'no impact,' talking to Google

The US Department of Commerce on Monday issued what it called "limited exemptions on Huawei products", a move created to allow companies to adjust to the abrupt decision last week to place the Chinese firm on an export blacklist.

That meant Huawei phones already out in people's hands, or base stations and other networking kit deployed in the field globally, would be cut off from software updates and repairs and other parts that originated from America - such as Android operating system and app updates, or electronics.

The founder of Huawei expressed confidence Washington's curbs on technology sales to the Chinese tech giant will have little impact and said Tuesday it is talking with Google about "emergency relief" for loss of services for its smartphone business.

It is unclear what the U.S. government extension permits, but if it allows Huawei to keep purchasing components, the company will likely order more to build inventory, said Mark Kelleher, an analyst at D.A. Davidson.

In a report, the global risk assessment firm Eurasia Group said that if the sanction process helps persuade European network carriers to also shun Huawei equipment, a full ban on purchases of US technology products and services could be avoided.

USA internet giant Google, whose Android mobile operating system powers most of the world's smartphones, said this week it was beginning to cut ties with Huawei in light of the ban.

Huawei's founder has a similar view when it comes to the license.

The news that Google has been forced to withdraw Huawei's licence for its Android operating is likely the biggest tech story of the year.

The U.S. Commerce Department will allow Huawei Technologies Co Ltd to purchase American-made goods in order to maintain existing networks and provide software updates to existing Huawei handsets.

A spokesperson for Huawei was not available for immediate comment.

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Furthermore, the USA and China are now in a full-blown trade war, with the US recently raising tariffs for virtually all Chinese imports to 25%, while China withdrew its commitments to no longer force technology IP transfers on American companies doing business in China. In a statement, Huawei reassured customers it would continue to receive support - despite the row. Additionally a UK Huawei exec told the beeb he reckons Huawei is just collateral damage in the broader trade war between the usa and China, which is hard to argue with. "We can not be isolated from the world", Ren said.

5G is the next digital milestone: Its ultra-fast network speeds and data capacity making possible widespread use of artificial intelligence and other high-tech advancements that China's government wants its companies to lead.

The US Government's contention is that Huawei has been working a bit too closely with the Chinese government.

Washington has tried to persuade US allies to shun Huawei as a supplier of fifth-generation technology.

The U.S. moves against Huawei, which is an independent corporation with no legal ties to the Chinese government, is not completely unprecedented.

Canada has been dragged into the battle.

The penalty was seen as a dramatic escalation of the economic clash between the Trump administration and China.

China's envoy to the European Union, Zhang Ming, called the move against Huawei "wrong behaviour", adding "there will be a necessary response".

This could put a pretty major dent in Huawei's sales outside China, to say the least.

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