Trump Says Huawei Could Be Part of Trade Deal With China

Kelley Robertson
May 26, 2019

"Today, Huawei, we are still committed to Microsoft Windows and Google Android", Richard Yu, head of Huawei's consumer business, told CNBC. In perhaps the least-surprising episode of this saga, Google has pulled all Huawei phones from the list of Android Enterprise Recommended devices - the phones and tablets Google suggests for use in large companies.

Huawei technologies has been under serious attack/threats from Washington since a couple of years now, with the U.S. warning that the Chinese giant's smartphones and networking gear could be Trojan horses for Chinese spies, though the Chinese firm has repeatedly denied such claims.

Huawei is one of several hardware vendors that make servers and equipment for Microsoft's Azure Stack product, which helps companies run software applications on either a hybrid cloud service or in their own data centers. A Google spokesman declined to comment.

Taiwan-based TSMC, the world's biggest contract chipmaker, said its shipments to Huawei have not been affected by the USA ban on the latter's access to United States components, Reuters reported on Thursday.

Foot Locker Inc shares plunged 16.0 per cent, the most among S&P 500 companies, after the footwear retailer missed quarterly profit and same-store sales estimates. The latest Huawei P30 and P30 Pro are still listed as recommended devices along with the Honor View20, Huawei Mate 20 and P20 series. Alphabet Inc.'s Google won't supply crucial software to future Huawei smartphones.

"Huawei may be wiped out of the Western European smartphone market next year if it loses access to Google", said Linda Sui, director of wireless smartphone strategies at Strategy Analytics.

Details about Huawei's new operating system beyond the trademarked name remain scant. The company was just granted a trademark for an in-house operating system from China's National Intellectual Property Administration. In the immediate aftermath of being placed on the list, USA companies started cutting off Huawei from access to their technologies, starting off with Google. The market is effectively a duopoly, with Android running on 87% of smartphones sold in the first quarter, and Apple's iOS running on nearly all of the rest, according to market research firm Canalys.

U.S. officials "fabricate lies to try to mislead the American people, and now they are trying to incite ideological opposition", he said, when asked about U.S. Secretary of State Mike Pompeo's recent criticism of Huawei. Europe and China are instead its biggest markets.

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