Huawei is facing another kick in the guts with US President Donald Trump now calling on Australian and US app developers to boycott the Chinese tech giant’s new OS and apps platform which they are desperately trying to build after being banned from being able to load US apps and Android OS apps onto their current communication and Chromebook hardware.
The US has already been successful with Huawei announcing that their house brand Kirin processor is dead because of the US bans on supplying Huawei.
Huawei said that they will stop making its flagship Kirin chipsets next month, as the impact of U.S. pressure on the Chinese tech giant grows.
U.S. pressure on Huawei’s suppliers has made it impossible for the company’s HiSilicon chip division to keep making the chipsets, key components for mobile phone, Richard Yu, CEO of Huawei’s Consumer Business Unit was quoted as saying at the launch of the company’s new Mate 40 handset.
With U.S.-China relations at their worst in decades, Washington is pressing governments around to world to squeeze Huawei out, arguing it would hand over data to the Chinese government for spying. Huawei denies it spies for China.
The United States is also seeking the extradition from Canada of Huawei’s chief financial officer, Meng Wanzhou, on charges of bank fraud.
Huawei has also suffered from the loss of access to Google Mobile Services, a suite of popular apps that includes Google Maps, Gmail and YouTube, as well as Google Play despite retailers in Australia are still selling Huawei smartphones.
The U.S. Department of State has launched a “Clean Apps” program urging companies to remove their apps from Huawei’s app store “to ensure they are not partnering with a human rights abuser.” Clean Apps is part of the broader Clean Network initiative aimed at excluding Chinese Communist Party-linked companies from sensitive networks.
The concern over technology Companies with direct links to the Chinese Communist party appears to be of no concern to Vodafone TPG, Optus or Telstra who are still selling Huawei to Australian customers with thousands of both consumer and business operators in Australia not aware that they are being sold high risk gear from banned Companies that also include ZTE.
Huawei has been working to develop its own answer to the Android mobile operating system and the Google Play store, where users can download third-party apps since Trump cut off the Chinese company’s access to key Google services last year.
While the Clean Apps initiative is not yet legally binding, it will force app developers to weigh the geopolitical risks of continuing work with the Chinese company, whose consumer electronics business is already struggling in overseas markets.
“This could impact the expansion of the developer ecosystem around Huawei’s new OS Harmony, just as the OS is moving towards more widespread deployment on Huawei platforms likely later in the year,” Paul Triolo, head of geotechnology research at risk consultancy Eurasia Group, told the Nikkei Asian Review.
Tallking about their Kirin processor demise Richard Yu, CEO for Huawei’s consumer business group, said. “Huawei spent more than 10 years developing chips. … It will be a great loss to us.”
Huawei’s self-designed chips have been crucial for making its smartphones competitive with Apple’s iPhones and to differentiate them from other rivals. Yu’s comments indicate that Washington’s tighter export controls announced in May, which restrict Huawei’s key contract chipmaker Taiwan Semiconductor Manufacturing Co. from making chips for the Chinese tech giant, are having a major impact on its phone business.