The current President of the United States (US) Donald Trump’s move to effectively ban Chinese telecommunications firms from doing business with American companies.
However, industry experts said this move is going to impact both the nations and the global tech industry alike.
Huawei and ZTE have been added to the “Entity List (Black List)” from Friday and prevents it from buying parts or technology from US suppliers without government approval as its equipment is considered potential tools for Chinese espionage.
“With this executive order, both the US components providers and the Chinese vendors would be impacted, it’s definitely a ‘double-edged sword’,” Mo Jia, research analyst at Canalys, told TechRadar Middle East.
In the meantime, it seems, a number of those involved in the periphery are treading lightly in hope of not burning bridges on either side.
Google has taken an accidental center stage, in its role providing Android and a variety of apps for the embattled handset maker.
According to a new report from Reuters, the U.S. software giant has taken some steps toward disentangling itself.
Word comes from unnamed sources, who say the company has suspended all businesses with Huawei, aside from those covered by open-source licenses.
The list appears to include updates to Android and popular apps like Gmail.
From the sound of it, Google is still attempting to wrap its head around how to proceed with the matter. Huawei, too, is assessing its options.
Given the complexity of smartphone hardware and software, handsets routinely utilize components source from a variety of different locations.
This fact has complicated things as trade tensions have begun to rise, hitting ZTE particularly hard over accusations that the company had violated U.S.-Iran sanctions.
Huawei has called the ban bad for all parties, but has continued to be defiant, noting its plans to become “self-reliant.”
The company has no doubt been preparing for the seeming inevitability of heightened trade tensions, but its determination has some industry observers unconvinced that it can carry on with without any input from the US.
Watch what Donald Trump had to say about the ban below: