Reuters: Google suspends some business with Huawei after Trump blacklist

by Volker Weber

NEW YORK (Reuters) - Alphabet Inc’s Google has suspended business with Huawei that requires the transfer of hardware and software products except those covered by open source licenses, a source close to the matter told Reuters on Sunday, in a blow to the Chinese technology company that the U.S. government has sought to blacklist around the world.

We will see how this plays out. Without access to Google Play store, Huawei's handset business outside of China would essentially be dead.

The bigger impact is more general. Who can trust a bully?

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Comments

The big question is, how much of this is Google's independent decision and how much is the Trump administration forcing their hand?

The article is a bit vague on that:
"On Thursday the Trump administration officially added Huawei to a trade blacklist, immediately enacting restrictions that will make it extremely difficult for the technology giant to do business with U.S. companies"

Sounds to me as if there are some export restrictions in place. To my knowledge the penalties for breaking them are draconian, even a Google can't afford to do that.

Armin Grewe, 2019-05-19

It's not in Google's interest to cut any OEM off. There are much bigger implications. China has the bigger balls in this game.

Volker Weber, 2019-05-19

Of course this isn't in Google's interest. But to me it looks like Google is "just" collateral damage in a much bigger game. This impacts other companies as well, for example many chip manufacturers incl Qualcom and others.

See here: https://www.reuters.com/article/us-usa-huawei-tech-commerce/chinas-huawei-restricted-from-using-us-suppliers-idUSKCN1SM2MG

Armin Grewe, 2019-05-19

Ich habe am Freitag mit einem Experten für Informations-Sicherheitsstandards wie Common Criteria, ISO 27001, IT Grundschutz und PCI gesprochen. Er meinte, dass die USA daran interessiert sind, keine Konkurrenz auf dem Gebiet der Verschlüsselung zu haben, und keine Produkte dulden, wo sie nicht selbst Back Doors einbauen können. Die Produkte von Huawei selbst seien ‚sauber‘ und zertifiziert - das einzige ‚Problem’ sei, dass die Amis keinen Zugriff darauf hätten...

Friedrich Holstein, 2019-05-20

Da sieht man mal, wie doof diese App-Store Abhängigkeiten sind. Das ist echt bitter für Leute mit solch einem Handy. Von heute auf morgen fast ein Briefbeschwerer. Andererseits gibts bei Android ja noch andere Möglichkeiten.

Johannes Matzke, 2019-05-20

Ich bin auf die Retourkutsche Chinas gespannt. Sollte China den Verkauf, oder gar die Herstellung/Ausfuhr, des iPhone XI verbieten, dürften Trump und seiner Mannschaft die Verwerfungen um $APPL die Hosen flattern lassen.

Maximilian von Hulewicz, 2019-05-20

Ja, die Rache Chinas dürfte interessant werden.
Das ist moderne Kriegsführung. Einfach mit Handelssanktionen die Wirtschaft platt machen.

Manfred Wiktorin, 2019-05-20

Wishful thinking: jetzt backt Huawei/China ein google-freies Android mit top Datenschutz und allerlei Open Source Alternativen integriert ;)

Johannes Neubrecht, 2019-05-20

https://twitter.com/Android/status/1130313848332988421

Thomas Cloer, 2019-05-20

@Thomas Cloer: Key word: "your *existing* Huawei device"

Kai Pahl, 2019-05-20

Welcome to the Trade War.

A 90-day license "grace period" was just announced:
https://s3.amazonaws.com/public-inspection.federalregister.gov/2019-10829.pdf

So nothing has to happen for 90-days. This was a "warning shot".

@Armin - It is definitely export/import restrictions, per the executive order. It's not just Google that is affected, but potentially all US companies that export to / import Huawei products (think telco carriers, 5G equipment, etc.). Google is just the big, shiny object with massive market impact.

@Vowe - Recall that at the heart of the trade war is China's (non-existent) enforcement of international intellectual property rights:

- stole the plans for the F-35 joint strike fighter jet
- stole the plans for the US's F-22 Raptor jet fighter jet
- last year it was discovered that the personal driver of Dianne Feinstein (prominent US Senator on US intelligence committees) was a Chinese spy for 20+ years
- countless private cases of China stealing IP that go unenforced in China

In that context, is the US still a "bully"? Or is it a victim fighting back?

Erik Brooks, 2019-05-21

Whoops, I really mistyped that (way tired). Meant to say that Huawei is not the only company whose equipment is blocked. Also meant to say Dianne Feinstein’s personal driver was the spy.

Erik Brooks, 2019-05-21

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I explain difficult concepts in simple ways. For free, and for money. Clue procurement and bullshit detection.

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