US delay to Huawei ban gives tech sector time to adjust


Huawei's new Honor 20 smartphone is seen at a product launch event in London, Britain, May 21, 2019. 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.

Google recently cut off Huawei's Android license in accordance with a Trump administration order that restricts United States companies from selling components and software to the Chinese smartphone maker.

Huawei and Chinese phone maker ZTE were each singled out past year by USA officials for posing a security risk.

The Commerce Department said it gave the grace period to give US companies time to adjust and prepare to cut out Huawei.

The Commerce Department said it will evaluate whether to extend the license period beyond 90 days. "In order to stand on the world's summit, for this goal, there will be conflicts with the USA sooner or later", Ren said.

"The Temporary General License grants operators time to make other arrangements and the Department space to determine the appropriate long term measures for Americans and foreign telecommunications providers that now rely on Huawei equipment for critical services", said Commerce Secretary Wilbur Ross in a statement. The move could have dramatic implications for Huawei smartphone users, as the telecoms giant will no longer have access to Google's proprietary services - which include the Gmail and Google Maps apps - a source close to the matter told AFP.

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"For existing models already in market - there is no major impact", Liu said of Huawei devices running on Google's Android.

The license also allows Huawei to engage in the development of standards for fifth-generation (5G) telecom networks. That faces uncertainty now that US companies may be restricted from contributing to it. Asked how long Huawei may face hard times, Ren said: "You may need to ask Trump about this question, not me".

Soon after, the administration effectively blacklisted Huawei, banning any USA companies from doing business with the Chinese telecom giant without permission from the American government.

Ren said Huawei was at odds with the USA government, not United States firms, and in a comment that trended on Chinese social media, he praised Apple Inc's iPhones, saying that he gifted the American firm's devices to family members.

Huawei is now on the receiving end of a USA government accusation that it engaged in bank fraud to obtain embargoed U.S. goods and services in Iran and move money via the global banking system.

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.