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Google cuts off some business with Huawei [Copy link] 中文

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Post time 2019-5-20 09:50:04 |Display all floors
1.  The following are excerpts from Angela Moon's May 20, 2019 article headlined "Exclusive: Google suspends some business with Huawei after Trump blacklist - source".

(Begin excerpts)
NEW YORK (Reuters) - Alphabet Inc’s Google has suspended business with Huawei that requires the transfer of hardware, software and technical services except those publicly available via open source licensing, a source familiar with 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.

The move could hobble Huawei’s smartphone business outside China as the tech giant will immediately lose access to updates to Google’s Android operating system. The next version of its Android smartphones will also lose access to popular services including the Google Play Store and Gmail and YouTube apps.

“Huawei will only be able to use the public version of Android and will not be able to get access to proprietary apps and services from Google,” the source said.

The Trump administration on Thursday added Huawei Technologies Co Ltd to a trade blacklist, immediately enacting restrictions that will make it extremely difficult for the company to do business with U.S. counterparts....

The extent to which Huawei will be hurt by the U.S. government’s blacklist is not yet known as its global supply chain assesses the impact. Chip experts have questioned Huawei’s ability to continue to operate without U.S. help....

Huawei will continue to have access to the version of the Android operating system available through the open source license, known as Android Open Source Project (AOSP), that is available for free to anyone who wishes to use it. There are about 2.5 billion active Android devices worldwide, according to Google.

But Google will stop providing Huawei with access, technical support and collaboration involving its proprietary apps and services going forward, the source said.

Huawei has said it has spent the last few years preparing a contingency plan by developing its own technology in case it is blocked from using Android. Some of this technology is already being used in products sold in China, the company has said....

Popular Google apps such as Gmail, YouTube and the Chrome browser that are available through Google’s Play Store will disappear from future Huawei handsets as those services are not covered by the open source license and require a commercial agreement with Google.

But users of existing Huawei devices who have access to the Google Play Store will still be able to download app updates provided by Google. Apps such as Gmail are updated through the store, unlike operating system updates which are typically handled by phone manufacturers and telecoms carriers, which the blacklist could affect, the source said...

Huawei’s European business, its second-biggest market, could be hit as Huawei licenses these services from Google in Europe.

“Having those apps is critical for smartphone makers to stay competitive in regions like Europe,” said Geoff Blaber, vice president of research at CCS Insight.  (End excerpts)

2.  US intensifying assaults against Huawei are tantamount to killing an ant with a missile.  It is reported that US Senator Schumer is calling for a “top-to-bottom review” of Chinese train maker CRRC Corporation Limited's business in the US as it “could potentially expose US rail system to cyber espionage and sabotage”.

It makes no sense for a supposedly sole superpower to go all out to crush a foreign company and other minor companies on the way.   As a Chinese saying goes, "Scolding a monk by pointing a finger at a bald man", behind all the apparent farce is the sinister agenda to cut China down to size.

China has to face the realities in the face of US intensifying assaults against its companies and restrictions on its global business:

(a)  All the US restrictions on its global trade and Chinese companies are tantamount to imposing a sanction in disguise.

(b)  US-Sino trade relations are already on the path of no return, and any hope of an "amiable, fair and equal settlement" is gone forever.  It is easy for Trump to enact hostile laws against China but difficult, if not impossible, to rescind them as it requires bipartisan consensus.  In other words, like Humpty Dumpty, or rather Trumpty Drumpty, after a great fall off the wall in the well-known Mother Goose rhyme, all the king's horses and all the king's men couldn't put the "Trumpty-Sino relations” together again.

(c)  The US is no newcomer to geopolitical strife. There is an uncanny parallel between the current US crackdown on China and its all-out efforts to cut Japan down to size before World War 2.

Donald Trump's infamous Hitler-style rabble-rousing chants:  "Lock her up!  Lock her up!"

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Post time 2019-5-20 11:31:56 |Display all floors
Too bad for google.
Believe it or not, it's true.

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Post time 2019-5-21 06:46:52 |Display all floors
Google and the like won't be around so much longer.

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Post time 2019-5-21 13:59:12 |Display all floors
Mishao Post time: 2019-5-21 06:46
Google and the like won't be around so much longer.

And they're fully aware of it...

   This embarrassing 90 day delay to attack the company they they're afraid of; that superior force got them in a corner without escape...

    Mind you, not Huawei made them retread, but their own folks...

      All them small companies and even smaller people using Huawei equipment got up and and spoke their mind...
    Silence within the sheepish media was and is expected...

    Them  3 months reprieve is meaningless, only to give uncle Sam time to gather their wits  and rethinking @ new strategy

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Post time 2019-5-21 15:09:48 |Display all floors
Huawei will prosper. Just make sure you deliver quality at affordable prices. Some of Huawei's practices are still not consumer friendly and the prices are too expansive for the quality.

Huawei's CEO response to US' Trump circus team shows that Huawei is on a different level with Huawei being the more sophisticated one (of course some American companies are still great). US is obviously retreating and beating the protectionist drum. No matter how Trump, Intel, Broadcom try to play out this, it is clear that US is trying to extort other nation's developments/success - something US has always been accusing others of irresponsibly. One might want to think again if US was really that advance in the first place.

Hopefully Huawei is careful with its trade agreements with those suppliers pulling out as there are bound to be legal implications both in stopping supplies and in seeking alternatives. Huawei is right in that while it is able to produce its own supply chain, it is good to continue to buy from other manufacturers so that everyone has a share of profits. This is business conducive. Trump's wild cowboy act, drawing his gun unrestrained is not conducive for the business world.

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Post time 2019-5-21 18:02:49 |Display all floors
If Huawei is set to manufacture chipsets and semi-conductors best to open such venture to two or three other small phone players in China and maybe a percentage for one of German's tech companies. Its a question of how to pitch for interested participants given Huawei's sophistication and dynamism. Its a stark contrast to protectionism advocated by US' likes of Google, Intel & Qualcomm.

With stakeholders from different background, sometimes a company can go much further. Possibly go for dual listing in China and Europe/Germany and have dual nationality.

If France comes long and wants a stake, why not?

But keep this between Europe and China.

For other nations that want in, collaborate in other industries/areas.

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Post time 2019-5-22 11:49:04 |Display all floors
tenith Post time: 2019-5-21 18:02
If Huawei is set to manufacture chipsets and semi-conductors best to open such venture to two or thr ...

I think Huawei has already had an international equity structure, with investors hailing from disparate places and backgrounds.

Google, along with many other US high-tech vendors probably are more distraught than Huawei is about D Trump's tariff stick.
Believe it or not, it's true.

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