Huawei is under a trade ban in the US at the moment, this means that it has had to remove Google apps and services from its devices, apps like Gmail, Google Search and more.
Now Google has applied to the US government for an exemption which would allow the company to do business with Huawei again.
Background of the Trade Ban
The trade ban on Huawei was imposed by the US government in May 2019, citing national security concerns. This ban has had significant repercussions for Huawei, as it meant that the company could no longer access essential American technologies and services. One of the most impactful consequences was the loss of access to Google’s suite of apps and services, which are integral to the Android ecosystem. This includes popular apps like Gmail, Google Search, Google Maps, YouTube, and the Google Play Store. Without these services, Huawei’s smartphones have become less attractive to consumers outside of China, where these apps are widely used.
Google’s Efforts to Regain Business with Huawei
Google’s application for an exemption is a strategic move to regain its business relationship with Huawei. If granted, this exemption would allow Google to provide its services on Huawei devices once again. This would be a significant development for both companies. For Google, it means regaining a substantial user base that was lost due to the ban. For Huawei, it would mean the ability to offer a more competitive product in the global market.
Microsoft was previously given an exemption by the US government which allows them to work with Huawei, so Google could get a similar exemption. Microsoft’s exemption has allowed Huawei to continue using Windows on its laptops, which has been crucial for Huawei’s PC business. This precedent suggests that Google has a reasonable chance of obtaining a similar exemption.
If Google is granted this exemption, then its range of apps which include the Play Store, YouTube, Gmail, Photos, and more would be allowed to run on these devices out of the box. This would not only enhance the user experience for Huawei smartphone users but also potentially boost Huawei’s sales outside of China. It will be interesting to see what decision is made, we suspect that they will be granted the exemption.
Implications for the Tech Industry
The outcome of Google’s application could have broader implications for the tech industry. If the exemption is granted, it could pave the way for other American companies to seek similar exemptions, thereby mitigating some of the trade ban’s impacts. This could lead to a more collaborative and less fragmented global tech ecosystem.
On the other hand, if the exemption is denied, it could further entrench the divide between American and Chinese tech companies. Huawei has already been developing its own alternatives to Google services, such as the HarmonyOS operating system and the AppGallery app store. A denial could accelerate these efforts and potentially lead to the emergence of a parallel tech ecosystem that operates independently of American technologies.
The decision on Google’s application for an exemption to the trade ban on Huawei is highly anticipated. It has the potential to significantly impact both companies and the broader tech industry. Whether the exemption is granted or not, it will be a pivotal moment in the ongoing trade tensions between the US and China.
Source GSM Arena
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