The US government’s trade embargo on Huawei has evidently started to impact on the firm’s smartphone business. While Huawei is still trying to work out modalities to placate the effects, Microsoft has struck. The US company may have joined Google in severing ties with Huawei. According to inside sources familiar with the matter, Microsoft has stopped accepting new supply requests from Huawei Technologies after the Chinese telecoms equipment was added to a US blacklist that prevents it from purchasing American technology.
Huawei’s parley with Microsoft is in the areas of the Windows operating system for laptops and other content-related services and all offerings have been suspended by the US company as it makes efforts to comply with the US government’s sanction. The Windows operating systems installed on existing Huawei PCs won’t be affected by this move and are said to still be eligible for updates and security patches. In addition, Microsoft’s services team in Huawei’s Shenzhen-based headquarters has reportedly moved out of the complex.
The US government a week ago placed Huawei and its subsidiaries on a trade blacklist that limited the Shenzhen-based organization from purchasing software and parts from US companies without authorization. Although the ban was suspended for 90 days, it is still surprising that more companies still announce compliance. The ban is largely seen as a move to get China to agree to the US trade terms. We expect a settlement to be reached between China and the US soon and the ban lifted. If the ban lingers for long, it means Huawei won’t be able to release a Windows PC while it lasts.
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(source)
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