In a surprise bit of weekend news that could have major implications on the smartphone market, Reuters reports that “Google has suspended business with Huawei that requires the transfer of hardware, software, and technical services except those publicly available via open source licensing.”
Translation: Huawei can no longer implement a full-fledged version of Android, losing access to Google services and more. Instead, it’ll only be allowed to use the open source components of Android. That means no Google Play Store, no Gmail, no YouTube – at least not without major workarounds. This presumably affects future devices; it’s not clear what effect it will have on current ones.
The Verge has since confirmed the Reuters report. If the breakup is permanent, it could be a major blow to Huawei’s smartphone future outside China.
The move follows US suspicion of Huawei’s relationship with Chinese intelligence, including an indictment for stealing US tech and culminating with the Trump administration placing the company on a trade blacklist this week. This effectively barred Huawei from doing business with American companies like Qualcomm, Intel, and, of course, Google – hence today’s report.
Though those companies are American, the implications are global – Huawei won’t be able to use components and software from those companies worldwide. Though smartphones typically do not have access to Google services in China, they’re an essential part of the Android experience virtually everywhere else. Without the Play Store, Huawei sales outside of its homeland could suffer dramatically.
Huawei is unlikely to go down quietly, and it’ll probably challenge its blacklist placement and Google’s revocation. It’s also unclear how permanent the ban is.
Last year, the US blacklisted ZTE for similar reasons – that ban only lasted from April to July. Though the Huawei ban puts pressure on China, preventing US companies from doing business with the world’s second largest smartphone maker could hurt their bottom line too. Trump is meeting with Chinese president Xi Jinping in Japan next month; the Huawei ban could be meant as leverage for that encounter.
To think it was less than four years ago that Google and Huawei worked so closely together to bring us the Nexus 6P. We’ve reached out to Google and Huawei for comment on the implications for future and current devices.
Jessica spends 12 hours a day on the internet managing security for web assets and loves her macha tea
