After Huawei crisis, should I be afraid?

No further trade talks between top Chinese and US negotiators have been scheduled since the last round ended in a stalemate on May 10, the same day US President Donald Trump sharply increased tariffs on $200bn worth of Chinese goods and took steps to levy duties on all remaining Chinese imports. 

 

Google said it would partially cut off Huawei devices from its Android operating system after the effective ban on US companies selling or transferring US technology to Huawei. 

 

Huawei said it would continue to provide security updates and services for its smartphones and tablets after Google said it would comply with an order barring the Chinese company from upgrades to its Android operating system.

 

"We have made substantial contributions to the development and growth of Android around the world," a spokesman said on Monday.

 

"Huawei will continue to provide security updates and after-sales services to all existing Huawei and Honor smartphone and tablet products, covering those that have been sold and that are still in stock globally.

 

"We will continue to build a safe and sustainable software ecosystem, to provide the best experience for all users globally," he added.

 

During a trade war with Beijing, President Donald Trump has barred US companies from engaging in telecommunications trade with foreign companies said to threaten American national security.

 

Huawei was also dealt a new blow on Thursday as Japan's Panasonic announced it would stop supplying some components to the company.

In an official statement emailed to AFP news agency, Panasonic said it had announced in an "internal notification" that it would "suspend transactions with Huawei and its 68 affiliates that were banned by the US government".

 

Japanese firm Toshiba also announced it was temporarily halting shipments to Huawei to check whether US-made parts were involved, to comply with Washington's new restrictions.

 

Washington's restrictions affect products made entirely or partially in the US where Panasonic manufactures some of its components.

 

With US Internet giant Google's decision to sever ties with Chinese telecom company Huawei, ripple effects are expected to be felt in India, where Huawei sells mobile-phone handsets and supplies gear to telecom companies.

 

In India, Huawei sells handsets under the brand names Huawei and Honor, with the former catering to high-end clientele and the latter to budget consumers.

 

It was aiming to widen its market share in India with the rollout of 5G technology. However, with this new ban, the launch of its latest devices is expected to be suspended until a way out from the current impasse is found.

 

Sources: Asia-times