The United States temporarily eased restrictions on Huawei on Tuesday, granting it a license to buy US goods until August 19, meaning that updates of Google apps such as Gmail and YouTube can continue until then.
The reprieve is meant to give telecommunications operators that rely on Huawei equipment time to make alternative arrangements, US Secretary of Commerce Wilbur Ross said in astatement.
At the same time, the US Commerce Department announced an effective ban on US companies selling or transferring technology to Huawei.
The Trump administration is working to ban Huawei products from the United States market and ban U.S. companies from supplying the Chinese company with software and components.
Huawei founder Ren Zhengfei on Tuesday shrugged off USA attempts to block his company's global ambitions, saying the United States underestimates the telecom giant's strength.
The Huawei confrontation has been building for years, as the world's largest company has raced to a huge advantage over rivals in next-generation 5G mobile technology. The company reported earlier its global sales rose 19.5% a year ago over 2017 to 721.2 billion ($105.2 billion).
US President Donald Trump's ban is also a setback for the US search giant, which relies on device-makers like Huawei to put its lucrative Web services in people's hands.
In response to this saga, Huawei said that it 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 or still in stock globally". Better (and more) cameras, better hardware and the latest version of Android.
Regardless of what Huawei's OS gets called, the report says it's "far from ready".
"Huawei is becoming the victim of the bullying by the USA administration".
Liu added that Huawei did not blame Google for its decision and said it was too early to say what the consequences will be.
But the harm is done and the fear, uncertainty and doubt (FUD) is likely to have long lasting impact on Huawei's smartphone business.
Question: Will this suspension of business with Google have an impact on Huawei's business in China?
Chip experts have called out Huawei on its claims that it could ensure a steady supply chain without USA help, saying the technology the Chinese telecoms network gear maker buys from American companies would be "hard to replace". Not only would this do severe damage to the desirability of Huawei Android smartphones sold outside of China, but would have caused major disruption to any U.S. companies that rely on working with Huawei.
At the core of the issue are ongoing accusations by the United States of Huawei spying and collusion with the Chinese central government.
Further US pressure would make it "very hard for the European Union to continue working with Huawei", said Guntram Wolff, director of Brussels-based think-tank Bruegel.
"Remember, this is an over $350bn-a-year market where USA companies are selling in China and that could have disastrous consequences for American businesses, especially down the profit lines".
One word about the other challengers; Huawei's struggles will benefit the other Chinese smartphone brands.
Eurasia Group said that regardless of any chip stockpile, Huawei "cannot stockpile software, and there is no conceivable way the firm could survive for an extended period. without access to global supply chains".
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