The United States government is unlikely to extend the temporary waiver to Huawei which would prohibit US companies to indulge in trade with it.
The U.S. government had banned Huawei by putting it in an Entity list earlier this year. A few days after that though, it gave the company a 90-day reprieve which it again extended by another 90 days. It was expected that the U.S. government would again give Huawei a 90-day reprieve but as per Rob Strayer, the US State Department deputy assistant secretary for cyber policy, that’s unlikely to happen.
Such so-called temporary general licenses “don’t often last forever,” Strayer said. They’re designed “to provide some immediate relief and to prevent immediate disruption to the market.”
Even worse, Strayer says that the US government could go ahead and impose further restrictions on Huawei’s business. The government could punish companies that work with Huawei on rolling out 5G by withholding confidential network information from them. This could further end up creating further issues for Huawei who’s smartphone business has already taken a major hit after the U.S. ban. It could mean that it won’t be able to work closely with ARM, Qualcomm, and even Google which would make it difficult for the company to update its existing smartphones and release new ones.
The company recently launched the Mate 30 series without Google apps as the U.S. ban meant it could not get the necessary certification for Google’s Play suite. While the Mate 30 series is already on sale in China, it is unclear when Huawei will put the device on sale in Europe and other parts of the world. It also remains to be seen as to how the company will circumvent the ban and allow users to sideload Google apps on their Mate 30.
It looks like things are only going to get bad for Huawei and if you don’t live in China, you should avoid buying any product from the company irrespective of how good a deal you get on it because there’s no guarantee it will receive security patches and Android updates.[Via Bloomberg]