Google warned if the U.S. administration moves ahead with sweeping ban on Huawei Technologies Co Ltd, it risks compromising national security, the Financial Times reported on Thursday.
The U.S.-based tech giant asked to be exempted from any ban, the report added.
By not allowing Huawei to update the Android operating system on its smartphones, the Chinese company could develop its own version of the software, which could then be more vulnerable to hacking risks.
The Trump Administration blacklisted the Chinese technology giant in a policy move that will prevent it from buying semiconductors, software and other components from American suppliers. The U.S. government has warned that Huawei presents a security risk because the equipment it supplies to telecom carriers around the world could be compromised to aid espionage and surveillance by Beijing.
The Commerce Department decision to restrict Huawei and 67 affiliates from purchasing American supplies jeopardizes the company’s networking and smartphone operations. Under the order, U.S. suppliers are able to appeal for special approval to continue selling to Huawei.
“In the short term there is some impact on our business,” said Huawei Chairman Liang Hua . ‘In the long term, we will have to develop our own operating system and ecosystem.”
He said that Huawei has not negotiated directly with the U.S. government and is waiting to see how the Google talks evolve. Huawei has said that if it has to develop an alternative operating system it could do so “very quickly.”
If Huawei develops its own version of Android, the Google won’t control it so can’t manage security upgrades or reap the consumer data that makes its services useful and fuels advertising revenue.
Google and the U.S. Department of Commerce did not comment on the report.