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- US technology companies and suppliers have reportedly cut off critical software and parts to Huawei in the latest crackdown against the Chinese telecommunications giant.
- The US has heightened concerns in recent months that Huawei technology could pose a security risk and may be used as a backdoor for Chinese government espionage.
- Sources told Bloomberg that several major chipmakers, including Intel, Qualcomm, Xilinx, and Broadcom, had decided to cut their ties with Huawei until further notice.
- On Sunday, sources told Reuters that Google suspended its business with Huawei and dropped its licensing on Android.
- Last week, the Trump administration added Huawei to a trade blacklist, which prevents the company from buying parts and components from American companies without US government approval. The move could have a dramatic effect on Huawei’s operations, as the company relies heavily on US components.
Top US tech companies and suppliers have reportedly cut off critical software and parts to Huawei in the latest US crackdown against the Chinese telecommunications giant.
The US has heightened concerns that Huawei technology — along with technology from its fellow Chinese telecom company ZTE — could pose a security risk and may be used as a backdoor for spying by the Chinese government.
Sources told Bloomberg that several major chipmakers, including Intel, Qualcomm, Xilinx, and Broadcom, had decided to cut their ties with Huawei until further notice. Those companies supply Huawei with important parts such as server chips as well as processors and modems for its smartphones, Bloomberg added.
On Sunday, sources told Reuters that Google suspended its business with Huawei and dropped its licensing on Android. As part of that decision, Huawei will reportedly lose access to updates on the Android operating system, and the next generation of Huawei phones that run on Android will lose popular apps like Gmail and the Google Play app store.
Last week, President Donald Trump signed an executive order declaring a national emergency over "threats against information and communications technology and services" in the US. Soon after, the Trump administration added Huawei to a trade blacklist, which prevents the company from buying parts and components from American companies without US government approval.
The impact on Huawei — the world’s largest telecommunications equipment producer — is not yet known, though experts have expressed doubt with the company’s ability to continue operations without US technology, Reuters said.
Google has clarified that users of Huawei smartphones will continue to be able to download security updates on their devices.
"We are complying with the order and reviewing the implications," a Google representative said in a statement.
"For users of our services, Google Play and the security protections from Google Play Protect will continue to function on existing Huawei devices."
Huawei on Thursday slammed the Trump administration for its decision and said a ban on its business in the US would only serve to hurt American interests as the country moves toward its deployment of 5G next-generation mobile networks.
"Restricting Huawei from doing business in the US will not make the US more secure or stronger," a Huawei representative told Business Insider. "Instead, this will only serve to limit the US to inferior yet more expensive alternatives, leaving the US lagging behind in 5G deployment, and eventually harming the interests of US companies and consumers."
The company also slammed the US over what it called its "unreasonable restrictions," which it said infringed on Huawei’s rights and could lead to serious legal battles down the road.
Sources told Bloomberg that Huawei executives believed they were being used as a "bargaining chip" in the trade war between the US and China.
Earlier this month, top US and Chinese officials met in Washington to negotiate a resolution to the escalating trade war between the two countries. As negotiations took a turn, Trump announced tariff increases on $200 billion worth of Chinese goods on a wide array of products including minerals, food, and clothing. China retaliated by saying it would raise duties on $60 billion worth of American goods starting June 1.
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Source: Business Insider – feedback@businessinsider.com (Rosie Perper)