Huawei may be about to feel the sting from the Trump administration's move to block USA companies from doing business with the Chinese electronics giant.
Google said it was "complying with the order and reviewing the implications" but Huawei users have been assured that their current phones will continue to work. Trump administration officials have argued that Huawei's continued access to USA technology poses a national security risk, given concerns about intellectual property theft and cybersecurity that have overshadowed ongoing trade negotiations between the US and China.
Huawei is immediately losing its access to Google's Android operating system updates, and future Android-powered smartphones by Huawei will not have access to Google apps and services such as the Google Play Store, Gmail, and YouTube.
"For users of our services, Google Play and the security protections from Google Play Protect will continue to function on existing Huawei devices", the spokesperson said, without giving further details.
It shouldn't be a problem for Huawei to find other Chinese and non-American suppliers, independent political analyst Alessandro Bruno told RT, pointing out that the North American market is already saturated and most new growth is in China and other parts of Asia anyway. While the obvious challenges are with Huawei, companies that rely on trade with the Chinese giant are also threatened.
A report from Reuters saying that Google has made a decision to halt business cooperation which needs the support of tech, software and hardware services with Huawei has swept the major media outlets and shocked the telecommunication field today.
The sudden suspension came just a few days after the U.S. President Donald Trump listed Huawei Technologies Co.
China and the USA are in the midst of months-long trade talks with the world's two biggest economies engaging in tit-for-tat tariff increases on hundreds of billions of dollars worth of each other's exports. If you own a Huawei or an Honor phone, you'll get security updates from the company, and still keep on using the Play Store. Those companies include Google, who by virtue of its Android operating system, form the software backbone of Huawei's mobile devices.
The exact details are still being discussed internally at Google, according to a source that spoke with Reuters.
"Existing Huawei device owners will be significantly impacted", he said.
Admittedly, such pressure imposed by the US on its European allies may hobble their future cooperation as they will have a deep recognition of how negative the influence the USA hegemonism would have.
The impact is expected to be minimal in the Chinese market.
In the last few years, Huawei had gained a lot of ground in the global market, even dethroning Apple from second place in the market. Most Google mobile apps are banned in China, where alternatives are offered by domestic competitors such as Tencent and Baidu.
Huawei's European business, its second-biggest market, could be hit as Huawei licenses these services from Google in Europe.
However, things do not have to be completely disadvantageous or a crushing blow for the Chinese company.