The move doesn't appear to have come as a surprise to Huawei, who has been working on developing its own software and technology in case the U.S. succeeded in chasing off potential business partnerships.
Reuters said that "a source close to the matter" revealed that "Google has suspended business with Huawei that requires the transfer of hardware and software products except those covered by open source licenses".
This would mean Huawei will lose access to smartphone operating system updates. Nothing is definite yet but U.S. Commerce Department is said to be removing some restrictions on Huawei.
As a effect of the Trump Administration's ban on Huawei, Google is reportedly moving to cease any business with Huawei.
A Google spokesperson informs us that its actions are to comply with U.S. Government orders after President Trump signed an executive order earlier last week on the grounds of aiding China in espionage. Amazon.com Inc. has built a forked version of Android that it runs on its own devices, but seeing as it's also a USA company, it's unlikely to be able to help Huawei. Huawei's legal team is also studying the impact of the suspension, according to a spokesman from the company.
Intel, Qualcomm, Xilinx and Broadcom will not supply Huawei with crucial microchips and processor until further notice, Bloomberg reported citing source familiar with the matter.
The move comes after US President Donald Trump added Huawei to a list of companies that US firms can not trade with if they don't have a licence. Following the listing of Huawei on the Department of Commerce Entity List - which specifies those companies which are considered a risk to the U.S. national security - companies in the United States have begun implementing that decision.
Washington accuses Huawei of spying on behalf of the Chinese government, but the telecommunications giant consider the United States officials' rhetoric to be a blatant example of unfair market competition.
New Huawei smartphones won't have access to Google's Play Store - where users download popular apps like Gmail and YouTube.
But why? As per the US, Huawei devices and equipment posses the possible concern of being used by China for surveillance.
Although this ban will strike a blow against Huawei, it may result in the company accelerating plans for its own mobile operating system.
This is how this new system will work.