According to a report by the South China Morning Post (SCMP), it is understood that Microsoft is the latest American company to cut business dealings with China's Huawei Technologies. Specifically, the SCMP reports that Microsoft has stopped accepting new orders from Huawei for operating systems and other content-related services.
Before this revelation, it was noted that Microsoft had removed all Huawei laptops from its online store. According to source quoted by SCMP, the move could merely a temporary suspension, however, Microsoft's team that works with Huawei has moved out of the Chinese technology giant's offices in Shenzen.
"The Post understands that the Windows operating systems equipped on existing Huawei PCs will not be affected and will still be eligible for updates and security protections, according to one of the people. Meanwhile, Microsoft’s services team for the Chinese company has already moved out of its Shenzhen-based headquarters."
More companies stop working with Huawei
Following American President, Donald Trump's executive order on 16 May 2019 effectively blacklisting Huawei and its affiliate companies from doing business in the USA and with the USA, several American and British companies have cut ties with the Shenzen headquartered company. More importantly and likely to severely affect Huawei's smartphone business in the short to medium term is the chip makers ARM, Intel, and Qualcomm who have said they will stop supplying Huawei with chips and components.
However, it is believed that Huawei had already stocked up on these prior to the executive order coming into effect.
What has also been interesting is that Huawei has countered the US ban by launching a Huawei Facts Twitter account and website where it regularly issues statements and articles denying all the accusations made by the USA so far and repeatedly stating that it is a victim of a trade war between China and the USA.
"Huawei is against the decision made by the Bureau of Industry and Security (BIS) of the US Department of Commerce. This decision is in no one's interest. It will do significant economic harm to the American companies with which Huawei does business, affect tens of thousands of American jobs, and disrupt the current collaboration and mutual trust that exist on the global supply chain."
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