An Executive Order against foreign communications technology services left Chinese company, Huawei, cut off from the United States. After President Trump signed the Order, Google and chipmakers like Intel and Qualcomm joined in the fight against suspected malicious acts. Though the Order was signed less than a week ago, the ban has already softened to save the stock market.
Government Takes Action Against Huawei
The battle between Huawei and the United States has been growing since March after the United States put forth a National Defense Authorization Act to prevent U.S. agencies from buying their products. However, the recent Executive Order kicked things into full gear.
President Trump signed the Order claiming that he found “that foreign adversaries are increasingly creating and exploiting vulnerabilities in information and communications technology and services…in order to commit malicious cyber-enabled actions, including economic and industrial espionage against the United States and its people.”
The government then put Huawei on a trade blacklist, meaning no U.S. company is allowed to trade with the tech giant.
Popular Tech Companies Follow Suit
Following the ban that came straight from the White House, other United States technology companies also cut Huawei out of their relations. Google reportedly followed the ban by suspending all business with the overseas partner aside from the consumers who were protected by open-source licensing. This means that Huawei will still provide security updates to its existing smartphones, but may not be able to receive Android software updates.
Google also promised access to the Google Play Store and Google Play Protect for existing Huawei phone users, but neither side made mention of future relations. Future devices from the Chinese manufacturer may not be able to access non-public Android operating system apps like Gmail and Youtube.
To add to the company’s woes, Intel, Qualcomm, and Broadcom, three of the world’s leaders in chip design and supply, cut their ties with Huawei. Their action of stepping back from the market means they will no longer supply chips to Huawei, following the Trump Administration’s orders.
Reacting to the Heated Manufacturing Battle
Both the United States and China have a lot to lose as they depend on each other for revenue streams. Huawei is more so in trouble as they use the well-known American chipmakers for processors, modems, chips, and other key components for networking machinery. This could result in a lag in 5G technology worldwide.
China seems to have been prepared for a U.S. impediment as they reportedly said they had stocked up on the chips that they received in trade and have roughly a three-month supply to survive while the ban continues. Huawei also claimed to be working on their own versions of apps in case Android no longer accepts their devices. The only problem with the company’s own app store and systems is the unknown level of security when downloading outside of the trusted Google Play store.
Softening the Blow After Plummeting Markets
On May 20, the U.S. Commerce Department decided to lessen the consequences of the original Executive Order. The decision came after the shares in companies like Qualcomm and Broadcom fell by over 3%. The response to the drop in stocks was to create a temporary license for Huawei to buy U.S. products so they can continue to maintain their networks and update existing devices. The license only allows for logical updates, as they are still prevented from buying physical parts for new devices.
Protecting Your Device Amidst the Controversy
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