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United States eases curbs on Huawei; founder says move means little meaning

United States eases curbs on Huawei; founder says move means little meaning

The United States is delaying restrictions on US technology sales to Chinese tech powerhouse Huawei in what it calls an effort to ease the blow on owners of its cellphones and smaller USA telecoms providers that rely on its networking equipment.

The United States has temporarily eased trade restrictions on China's Huawei to minimise disruption for its customers, a move the founder of the world's largest telecoms equipment maker said meant little because it was already prepared for USA action.

Being among the world's top-three largest phone makers and controlling a relatively large proportion of the smartphone market in developing countries, there is no doubt the development will affect Huawei's multinational smartphone business. A company spokesman in Australia said the United States actions "will not impact consumers" with a Huawei tablet or smartphone in the country, or those planning to buy a device in the future.

Although it didn't clarify which other apps may be affected, Google said "the security protections from Google Play Protect will continue to function on existing Huawei devices".

According to a report by the Chinese magazine Caijing, Richard Yu, CEO of Huawei Consumer Business Group, has revealed details about the Huawei operating system.

Google said Monday it would cut Huawei's access to the mobile operating system to comply with a US order that bars American companies from doing business with firms deemed a risk to national security.

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Roger Kay, founder and analyst at Endpoint Technologies Associates, said the ban is likely to accelerate efforts by Huawei and other Chinese firms to develop their own sources of microprocessors and other components. Zhengfei stated, "Huawei is a commercial company, and the use of its products is a choice for consumers based on their likes and should not be linked to politics".

President Xi Jinping's Monday visit to a rare-earth company in southern China sparked speculation that the sector could be the next front in the trade war, driving up shares in Chinese rare-earth related firms on Tuesday.

China's government repeated its promise to defend Chinese companies overseas but gave no details of what Beijing might do.

The Commerce Department said it will evaluate whether to extend the licence period beyond 90 days.

The reprieve is meant to give telecom operators that rely on Huawei equipment time to make other arrangements, US Secretary of Commerce Wilbur Ross said in a statement yesterday. "In short, this license will allow operations to continue for existing Huawei mobile phone users and rural broadband networks".

Huawei's founder has warned the United States that it is underestimating his company, as the technology business faces sanctions which block it from buying products from key suppliers.