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Google reverses its decision to cut its relationship with Huawei

Visitors try the Huawei Mate S smartphone.

Sean Gallup | Getty Images News | Getty Images

Google of Alphabet Inc. announced Tuesday that it plans to partner with Chinese company Huawei in the next 90 days, shortly after the US temporarily relaxed trade restrictions on the world's second-largest smartphone maker and dramatic Turnaround for the US technology conglomerate. On Sunday, Google announced its intention to cut ties with Huawei in response to Washington's decision to put China's telecoms giant on the so-called Entity List.

Shortly after, however, the US Department of Commerce announced that it had granted a 90 percent license. Day license for mobile operators and broadband Internet service providers to work with Huawei to keep existing networks online and protect users from security risks.

With this exception, Google may send software updates to Huawei phones using its Android operating system until August 1


"Keeping phones up to date and secure is in everyone's best interests, and with this temporary license, we can continue to provide software updates and security patches for existing models over the next 90 days," a Google spokesman told CNBC on Tuesday E-mail with. 19659008] Temporary General License

The US Department of Commerce announced it would examine whether the temporary exemptions should be extended beyond 90 days.

Late last week, the Department of Commerce added Huawei and 68 other companies to an export blacklist and made it practical. For the Chinese company, it is impossible to buy US-made goods.

Companies listed on the Entity List are involved in activities that threaten US national security or US foreign policy interests.

Last Monday's announcement explained The approval was created as a temporary general license. This will enable Huawei to uncover security vulnerabilities and develop standards for future 5G networks.

A Huawei spokesman declined to comment when contacted by CNBC.

Huawei was the second largest smartphone maker in the world market share in the first quarter. The company had previously set itself the goal of becoming the leading provider of smartphones by 2020.

Of the $ 70 billion Huawei spent on component purchases in 2018, approximately $ 11 billion went to US companies, including Qualcomm, Intel, and Micron Technology.

] According to Canalys, just over 49% of Huawei's smartphone shipments went to international markets outside of China in the first quarter of 2019, according to Canalys.

– Penny Chen and Reuters of CNBC have contributed to this article.

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