US government gives Chinese phone manufacturer Huawei stay of execution

Australian Huawei smartphone owners have another 90 days of confidence, after the US government decided to give the manufacturer a stay of execution.

Australians using Huawei smartphones won another three months of support overnight after the controversial Chinese phone maker was granted a second stay of execution by the United States government.

Despite threats by US President Donald Trump to cut ties with Huawei, the company has been given another 90 days in which to do business with US firms including Google, Intel and Microsoft.

But its latest short-term business permit comes with significant strings attached that authorities say are designed to ensure a future ban has “no loopholes”.

Huawei, which overtook Apple to become the world’s second biggest smartphone maker earlier this year, was briefly banned from doing business with US companies in May as part of an executive order from US President Donald Trump.

President of Honor, a sub-brand of Chinese telecommunications company Huawei, George Zhao, gives a keynote speech. The company has a short-term permit. Picture: AFP

The ban could have seen Australian smartphone users cut off from timely Google Android software updates for their existing smartphones, no longer able to use popular Google apps including Maps and Gmail, and future Huawei smartphones would have to run on Huawei’s own software, which is not yet ready for the task.

But company was given a 90-day extension, maintaining its access to US software and hardware, but analysts questioned whether that allowance would be extended after comments by Mr Trump this week.

RELATED: Trump doesn't want business with Huawei

“Huawei is a company we may not do business with at all,” he told reporters.

“I don’t want do business at all because it is a national security threat.”

But US Commerce Secretary Wilbur Ross last night confirmed the US would extend trade with Huawei until November 19 before a ban begins, though he said it was a move designed to give US phone and internet carriers time to replace suppliers.

“There is another 90 days for the US telecom companies,” he told

Fox News.

“Some of the rural companies are dependent on Huawei so we’re giving them a little more time to wean themselves off.”

Huawei smartphones are seen in a Huawei store in Shanghai. The company has not given up on working with Australian firms. Picture: AFP

Mr Ross said the US had also added another 46 Huawei subsidiaries to its “entity list,” meaning American companies could not sell products to the companies without a specific licence and there would be “no loopholes” in the executive order.

“Adding more entities makes it more difficult for Huawei to get around the sanctions,” he said.

Despite claims by US officials, and a ban on its 5G equipment in Australia, Huawei is actively campaigning against restrictions, even pointing to a recent report from Ovum that it said proved its equipment could safely be used in 5G networks.

Huawei Technologies chief security officer Andy Purdy said the company had not given up on working with Australian firms on 5G networks and was prepared to work with the Federal Government.

The US-China grade war saw Huawei sales drop by nine per cent. Picture: AFP

“Huawei is working with operators and regulators around the world, including our ongoing extensive work with the European Union, to deliver 5G in a safe and secure manner and is ready to talk with the Australian Government at any time,” he said.

The trade war between the US and China saw Huawei smartphone sales drop by nine per cent in May, Kantar global director Dominic Sunnebo said, and those sales could be “lost to competitors” in the event of a US ban.

“There are signs Huawei owners are putting off upgrading, likely waiting for clarity on the future situation,” he said.