The US embargo on Huawei has been extended for another year. Under special circumstances, Chinese companies can only continue to cooperate with certain American companies.
In May 2019, Donald Trump signed an executive order prohibiting US companies from conducting business with Huawei or using its telecommunications equipment. The decree, called the Huawei ban, will be extended for another year on Thursday, May 14, until May 2021.
The reason for extending the US ban remains the same: national security issues. The signed decree also prohibits trade with the Chinese manufacturer ZTE. Donald Trump believes that the manufacturer’s products are dangerous and accuses ZTE and Huawei of espionage. So far, these allegations have not been confirmed.
Huawei will once again be blacklisted by the US government and will not obtain any Android license from Google. Therefore, the manufacturer’s new smartphone will not have to use Google Mobile Services (GMS), which will make the company pay a high price in markets outside of China.
However, American companies will be able to apply for derogatory licenses, so in rare cases, they may have to sign trade agreements with Chinese companies. At the beginning of 2020, Google applied for such a license, but was unsuccessful.
Huawei has been working hard last year to find alternatives to make up for the loss of Google services such as the Play Store. For example, it has launched its own AppGallery. This proposal is very attractive, but I think the European public will not talk.
At the same time, Huawei is trying its best to occupy this field by re-issuing old-licensed smartphones (such as the latest Huawei P30 Pro). This measure issued by Donald Trump will definitely have a major impact on the development of the Chinese telecom giant.