The United States tech industry has overnight dealt a potentially fatal blow to Chinese electronics giant Huawei, by boycotting the company. Huawei was poised to become the world's #1 smartphone vendor in terms of sales.
The companies are establishing compliance with a recent Executive Order passed by President Donald Trump designed to "stop the import, sale, and use of equipment and services by foreign companies based in countries that are potential adversaries to U. interests," particularly information technology security. Google has announced that it will no longer allow Huawei to license Android, and will stop updates and Google Play access to Huawei smartphones. companies, (for example, Windows licenses from Microsoft). President Trump as part of the Executive Order, writes "I further find that the unrestricted acquisition or use in the United States of information and communications technology or services designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to the jurisdiction or direction of foreign adversaries augments the ability of foreign adversaries to create and exploit vulnerabilities in information and communications technology or services, with potentially catastrophic effects, and thereby constitutes an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States." The definition of an adversarial entity is open to interpretation, and Huawei may not be the only foreign company that qualifies as one.
Huawei can still equip its phones with open-source Android, but it cannot use Google's proprietary software, including Google Play Store, Chrome, and all the other Google apps. firms banned from buying from Huawei, they're also banned from selling to it. Since trading opened Monday morning in Asian markets, stock prices of listed Chinese tech firm ZTE fell 10 percent. Across the pond, European governments remain neutral to Huawei.
The move, first reported by Reuters, comes at a time when the two countries have threatened each other with tens of billions of dollars in tariffs in recent weeks, fanning worries of a full blown trade war that threatens global supply chains as well as business investment plans. ZTE, whose Hong Kong and Shenzhen shares were suspended from trade on Tuesday, said in a statement it was assessing the implications of the U. decision and was communicating with “relevant parties”. concerns about safeguarding its chip technology and cutting its trade deficit grow, the tech sector has become a flashpoint in the broader battle about trade and economic policy, with U. President Donald Trump accusing Chinese firms of intellectual property theft for years.
China responded swiftly, warning it is prepared to take action to protect the interests of Chinese firms and saying it hopes the United States can deal with the issue in accordance with the law. “If the issue cannot be solved smoothly and immediately, we think that ZTE will face tremendous disaster and would be forced to scale back on its smartphone business, not only in the U.
Update May 23rd: ARM, the company behind the IP required to build ARM-architecture-based microprocessors (which are used in most of Huawei's products), has now stopped working with Huawei, too.
Does this mean that existing Huawei devices will be banned from the Play Store? 'Cause if it's the former, this is an extremely hostile action towards the millions of people globally who have bought Huawei phones believing in good faith that they were and would continue to be "Android phones".
Intel processors continue to form the backbone of client-computing, but it's only a matter of time before Chinese firms mass-produce x86 processors of their own.
Update May 20th: Facing regulatory backlash from Huawei devices abruptly losing functionality from loss of Google Play services, Google has in a statement to Reuters confirmed that Google Play app updates and validation services will continue to be offered to existing users of Huawei devices.Of course Play Store access and GApps can be sideloaded on most devices, but ... LONDON/NEW YORK/HONG KONG (Reuters) - The United States has banned American firms from selling parts and software to China’s ZTE Corp for seven years, potentially devastating for the telecoms equipment maker and exacerbating tensions between the world’s two largest economies. Commerce Department imposed the ban following ZTE’s violation of an agreement on punishing employees that was reached after it was caught illegally shipping U. S., but also in other markets,” said Strategy Analytics analyst Woody Oh.“In almost every region outside of China, it is almost impossible to sell an Android handset that does not have Google Play installed.” Google declined to comment. 2 telecom equipment maker after Huawei Technologies Co Ltd [HWT. 4 seller of smartphones in the United States, and was worth some billion as of Monday’s close. But Jefferies also said it expected ZTE would be able to settle with U. Oclaro Inc, which got 18 percent of its fiscal 2017 revenue from ZTE, lost 14 percent. In 2017, it derived 59 percent of revenue from its network business and 32 percent from its consumer business. are not going to want to deal with them,” said Eric Hirschhorn, a former U. undersecretary of commerce who was heavily involved in the case. “If the company is not able to resolve it, they may very well be put out of business by this. The Chinese company paid 0 million in fines and penalties after it pleaded guilty last year to conspiring to violate U.