The latest development in the Huawei trade ban saga comes directly from the ongoing G20 summit where US President Donald Trump announced that “U.S. companies can sell their equipment to Huawei,” thereby giving lifeline to the Chinese tech firm which was suffering from the political tensions between USA and China.
In May, the US Commerce Department had placed Huawei into a trade blacklist that banned US companies from dealing with the Chinese company. Since then, companies including Google, Qualcomm, Intel, and many more cut off ties with Huawei. With Google stopping business, it meant that Huawei wouldn’t be able to use Android OS in its future mobile devices. However, to tackle that, it has been working on an alternative mobile OS called Hongmeng OS (ARK OS) based on the AOSP project.
Huawei founder and chief executive Ren Zhengfei said recently that the ban would cost the Chinese tech company some $30 billion in lost revenue of the next two years, as they are the world’s third largest seller of smartphones. To cool down the current situation, President Donald Trump and Xi Jinping, President of China, agreed to a truce between the two nations. Previously, it expected that negotiations were merely on a political basis, instead Mr. Trump granted Huawei some relief by allowing US-based companies to resume sales.
Despite the good news, the mutual trust between the two countries is broken and things surely would not be the same again. The recent step in a series of strategies in its ongoing trade battle with China exempflies just how dependent the company has become on the U.S. to simply function.
Huawei has already started taking steps to make itself independent of the Android operating system and its own backup chips.