Major American tech firms, including Google, will stop selling components and software to Chinese telecommunications giant Huawei in response to a directive by the Trump administration, according to sources cited by Bloomberg news agency.
Alphabet, Google's parent company, has decided to cut off its supply of critical software and components to the Chinese firm, according to a Bloomberg report published on Sunday that cited sources who asked not to be named.
Similarly, chip manufacturing firms such as Intel, Qualcomm, Xilinx Inc and Broadcom have informed their employees that they will stop supplying components to Huawei until further notice.
These decisions had been expected ever since United States President Donald Trump on Wednesday declared a national emergency to ban American firms from conducting business with companies that allegedly attempt to spy on the country or use telecommunications equipment manufactured by them.
This decision, issued through an executive order, was expected to affect Chinese firms such as Huawei, considered the second-largest smartphone seller in the world.
The executive order did not automatically impose restrictions on the sale and purchase of telecommunications equipment, but gave Commerce Secretary Wilbur Ross five months to determine which companies should be subject to the new limitations for posing a threat to the country's security.
However, in a later decision, the Department of Commerce included Huawei in a list of entities that would be denied access to US technologies.
“The sale or transfer of American technology to a company or person on the Entity List requires a license issued by BIS, and a license may be denied if the sale or transfer would harm US national security or foreign policy interests,” the department said.
These measures come amid a trade war between the US and China that has led to the imposition of tariffs by the two countries on each other's products and has aggravated the battle for control and development of 5G networks.
In the tech domain, the US has been leading a global campaign to prevent Chinese firms such as Huawei from having control of 5G networks, a technology that allows greater internet speed, which in turn would enable the development of autonomous vehicles and technology for remote-controlled surgery.
For some time, the US has insisted that Huawei could be used as an instrument of espionage by China, and institutions such as the Pentagon have completely banned the use of its products.
The US government has urged the European Union to also impose restrictions on Huawei, which has so far been in the forefront of developing 5G technology.
The US fears that China may use Huawei's 5G networks for spying, which the Chinese company has denied.