Google share price rises 1% after US eases Huawei trade restrictions
The tech giant's stock rises after the US gives Huawei a reprieve from a trade blacklist for 90 days.
Google share price rebounded after the US Commerce Department temporarily loosened restrictions on the tech company working with Chinese tech giant Huawei. Tech stocks initially fell after Huawei was added to a US trade blacklist.
Why is Google continuing to work with Huawei?
Google and other US tech companies were prohibited from working with Huawei after the US Commerce Department declared goods from the Chinese company a threat to American national security. However, the Commerce Department recently permitted the corporations to continue to work with Huawei for three months so there are no security risks to customers.
Commerce Secretary, Wilbur Ross, said the Commerce Department is issuing a temporary general licence to Huawei. The licence gives tech companies time to plan before the trade blacklist is fully enacted in 90 days. The temporary general licence is supposed to ensure there are no disruptions to customers’ computer or phone systems after Huawei is banned from partnering with American tech corporations.
‘The temporary general licence grants operators time to make other arrangements and the [Commerce]Department space to determine the appropriate long-term measures for Americans and foreign telecommunications providers that currently rely on Huawei equipment for critical services,’ said Ross.
How will Google work with Huawei during the trade blacklist exemption?
As a result of the trade exemption, Google can send software updates to Huawei phones that use the Android system until August 19. The licence also allows Huawei to participate in the development of 5G network standards. Google praised the trade restriction reprieve as essential to providing updates that will help customers.
‘Keeping phones up to date and secure is in everyone’s best interests and this temporary licence allows us to continue to provide software updates and security patches to existing models for the next 90 days,’ said a Google spokesperson.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
