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United States is delaying the restrictions on technology sales to Chinese tech giant Huawei as an effort to ease the tension on owners of its smartphones and U.S. telecoms providers that rely on the company for its networking equipment.
A Commerce Department filing stated that the delay does not change the ban imposed by President Donald Trump on national security reasons. Instead, it grants a temporary license that will allow Huawei to continue doing business with American firms for 90 days.
Google says its basic services still will work on existing Huawei smartphones. But the company would restrain from transferring hardware or software directly to Huawei. Industry analysts claims Huawei might struggle to compete if it cannot arrange replacements for Google services that runs most of its smartphones.
The 90 days grace period was announced on Monday by Washington. It exempts from U.S. licensing requirements any technology needed to maintain and support existing networking equipment and smartphones of Huawei.
Main reason for putting up a ban on the company is that US intelligence believes Huawei is backed by the Chinese military and its equipment could provide Beijing's spy network with a backdoor into the communications networks of other rival countries.
