U.S. Tech Suppliers, Including Google, Restrict Dealings With Huawei After Trump Order

LONDON — The Chinese technology giant Huawei on Monday began to feel the painful ripple effects of a Trump administration order that effectively bars American firms from selling components and software to the company, ramping up a cold war between the two countries over technology and trade.

The fallout began when Google cut off support to Huawei in recent days for many Android hardware and software services, according to the companies. The move, a response to the Trump administration’s order last week, could hamstring Huawei by restricting its access to future versions of the Android operating system. Google will also limit access to popular applications like Maps, Gmail and the Google Play store in new handsets made by Huawei, the world’s second-largest smartphone maker, behind Samsung.

But Huawei was given a temporary reprieve from Google’s abrupt pullback by the Commerce Department, which last week had added Huawei to a list of companies deemed a national security risk, effectively preventing it from buying or licensing American parts and technology without special permission from Washington. Late Monday afternoon, the department said in a notice posted to the Federal Register that it would grant 90-day permissions for transactions necessary to maintain and support existing cellular networks and handsets.

Google said that it would work with Huawei during the 90 days to provide security updates to its Android operating system, but that it planned to abide by the Commerce Department’s orders when the period expired.

Chip makers have also started stepping back from dealings with the Chinese firm. The German supplier Infineon said on Monday that it would restrict its business with Huawei. And Intel and Qualcomm, two of the world’s largest chip makers, have told employees to cease working with the Chinese company until further notice, according to Bloomberg.

The mass flight of American technology companies from Huawei, one of China’s proudest corporate champions, is a stark escalation in the high-tech battle that has simmered between the two powers for years.

China has long prevented many American internet giants from providing services within its borders, and it has placed tight strictures on how other American technology firms can operate. The enormous commercial potential of the Chinese market made it hard for the companies to put up much of a fight as Beijing declared, in effect, that their business interests were subservient to China’s national security interests.

Now, the United States government is showing that it, too, has ways of getting foreign companies to play by its rules in the name of upholding national security. Its asset is not a giant, untapped market for technology products, but the technology itself — the know-how and capabilities without which Huawei would not have achieved so much of its success.

“We have made substantial contributions to the development and growth of Android around the world,” Huawei said in a statement about Google’s pullback. “As one of Android’s key global partners, we have worked closely with their open-source platform to develop an ecosystem that has benefited both users and the industry.”

The company’s decision to halt work with Huawei was earlier reported by Reuters. Intel declined to comment, and Qualcomm did not respond to requests for comment.

Major American wireless companies have effectively been blocked from buying Huawei’s telecommunications equipment for years, but the company’s business has grown rapidly in Africa, Asia and Europe, where its affordable prices have been embraced by consumers and by phone companies that use its antennas, base stations and other hardware to make wireless networks.

In recent months, the United States has stepped up its campaign against Huawei, which it has said poses a national security risk. American authorities have worked to persuade allies like Britain and Germany to block the use of Huawei telecommunications equipment. But the efforts have had limited success, as many countries rely on Huawei gear in the race to build up fifth generation, or 5G, wireless communication networks.

Last week, President Trump issued a ban prohibiting American telecommunications firms from installing foreign-made equipment that could threaten national security. The order instructed the commerce secretary, Wilbur Ross, to stop transactions “posing an unacceptable risk.” Although the order did not single out specific companies, it was widely believed to be directed at Huawei and others in China’s tech sector.

The actions put pressure on American allies that have so far resisted urging from the Trump administration to issue complete bans against Huawei. James Lewis, a senior vice president and the director of the technology policy program at the Center for Strategic and International Studies, said that most European countries would prefer a softer approach.

“I don’t think Europeans realize the extent of the strength of feelings in the U.S. that we need to block Huawei,” Mr. Lewis, a former official at the State and Commerce Departments, said.

China has not said whether it plans to retaliate against the United States in response to Mr. Trump’s move. On Monday, shares in Qualcomm, Infineon, Intel and Alphabet, Google’s parent, all fell. Apple, which depends on the Chinese market for a large portion of its revenue, also dropped amid concerns that the tech battle between the two powers made it a potential target.