The U.S. government has temporarily eased trade restrictions imposed last week on China's Huawei, a move aimed at minimizing disruption for its customers but dismissed by its founder who said the tech firm had prepared for U.S. action.
Yesterday, the Commerce Department granted Huawei a license buy United States goods until August 19 to maintain existing telecoms networks and provide software updates to Huawei smartphones.
Huawei said in February that it generated US$270-million from the sale of network equipment in Canada in 2018 and made US$150-million from its consumer smartphone business here.
USA tech-giant Google has cut Chinese telecom firm Huawei off from some updates to the Android operating system.
But one, California-based Lumentum Holdings, a maker of optical and laser applications, said it would comply with the executive order and that Huawei accounted for 15 percent of its revenue so far in the current fiscal year.
The department added that it would evaluate whether to extend this temporary licence beyond 90 days.
"Answer: Huawei will continue to provide security updates and after-sales services to all existing Huawei and Honor smartphone and tablet products, covering those that have been sold and that are still in stock globally".
Roger Kay, founder and analyst at Endpoint Technologies Associates, said the ban is likely to accelerate efforts by Huawei and other Chinese firms to develop their own sources of microprocessors and other components.
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Question: Will this suspension of business with Google have an impact on Huawei's business in China?
"Ironically (the ban) won't affect Google much because Google doesn't make money selling Android". Presumably, apps will be available to download from the company's Play Store alternative - App Gallery - but the company could still face the issue of not having access to American apps such as YouTube, Twitter, Instagram, and WhatsApp.
"The longer-term effect is that Huawei and other Chinese companies turn away more sharply from American suppliers".
The reprieve is meant to give telecom operators that rely on Huawei equipment time to make other arrangements, US Secretary of Commerce Wilbur Ross said in a statement yesterday.
Best of all for Huawei fans: it will still be compatible with all Android and web apps. Huawei would do everything in its power to mitigate the impact of the US decisions, Liu said.
Adding to its US troubles on Thursday, the US Commerce Department placed Huawei and 68 entities to an export blacklist, making it almost impossible for those listed to purchase goods made in the United States.
In a statement to The Globe and Mail on Tuesday, Alykhan Velshi, vice-president of corporate affairs at Huawei Canada, said the company will continue to serve its clients.