Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Photo: Ina Fried/Axios

Huawei, which rapidly rose through the ranks to become the world's No. 2 smartphone maker, could see its fortunes fall just as fast amid U.S. sanctions that limit its ability to conduct business with American suppliers.

Why it matters: To make its phones, Huawei relies on Google's Android operating system. Google has stopped supplying its own apps and services to Huawei, in accordance with a U.S. ban enacted last week.

Most pressingly, the ban has led Google to turn off Huawei's access to the Google flavor of Android, including its services and app store. (Huawei can still access and distribute the open source version of Android, but that lacks a lot of the key selling points of the custom Google version.)

Between the lines: In China, phone buyers don't rely on Google services and there are a number of other outside app stores. In nearly all other markets, though, access to Google's Play Store and key apps like Maps, Gmail and YouTube are considered table stakes for an Android device. Huawei doesn't sell a meaningful number of phones in the U.S., but has grabbed a significant share in Canada and parts of Europe.

Huawei has been working on its own operating system for some time. While a sensible backup plan, creating a rival software ecosystem, even one based on open source Android, is a tall order.

The bigger picture: One advantage Huawei does have is that, unlike many smartphone makers, it makes its own core processors, meaning it doesn't rely on chips from Qualcomm. However, a lot more goes into a phone than just the software and main processor. And, while Huawei has apparently tried to stockpile other key smartphone components, it is unclear just how large a supply it has built up.

Per Bloomberg, a number of U.S. chipmakers have stopped supplying chips to Huawei, including Intel, Qualcomm and Broadcom. (Intel and Qualcomm declined comment; a Broadcom representative was not immediately available for comment.)

Huawei also has a smaller computer unit that uses Microsoft Windows, which seems likely to also be impacted by the U.S. ban. (Microsoft did not immediately respond to Axios' request for comment.)

More importantly, Huawei also relies on U.S. software and technology for its even larger networking business, which is the core of its operations. It's unclear just what effect the U.S. ban will have on that business.

Flashback: Huawei has been an up-and-comer in the global market, even without making inroads in the U.S. As a sign of its growing role, Google itself tapped Huawei to make one of its Nexus devices, the Nexus 6P, back in 2015. Huawei had hoped to not only solidify its place as a major Android phone maker, but perhaps gain a larger share of the U.S. market.

What's next: Huawei and Google can seek U.S. Commerce Department permission to continue their work together, either broadly on phones or perhaps more narrowly to ensure existing customers maintain direct access to security updates. Likewise for other partners.

Bottom line: This is a giant blow to Huawei, but don't expect China to sit idly by. Just as Huawei is dependent on U.S. software, many U.S. tech companies, including Apple. are largely or wholly dependent on Chinese companies to manufacture their products.

Go deeper

House passes $768 billion defense spending bill

Photo: Andrew Harrer/Bloomberg via Getty Images

The House approved a $768 billion National Defense Authorization Act (NDAA) for the 2022 fiscal year in a bipartisan 316-113 vote on Thursday.

Why it matters: The annual bill, which authorizes Pentagon spending levels and guides policy for the department, would require women to register for the military draft, among other provisions.

4 hours ago - Politics & Policy

Republicans’ secret lobbying

Illustration: Shoshana Gordon/Axios

The five Senate Republicans who helped negotiate and draft the $1.2 trillion bipartisan infrastructure bill have been privately courting their Republican colleagues to pass the measure in the House.

Why it matters: House GOP leaders are actively urging their members to oppose the bill. The senators are working to undercut that effort as Monday shapes up as a do-or-die moment for the bipartisan bill.

CBC members nix border visit

A Haitian migrant carries a toddler on his shoulders today as he crosses the Rio Grande River. Photo: Pedro Pardo/AFP via Getty Images

Several members of the Congressional Black Caucus weighed visiting the U.S.-Mexico border this week to investigate the conditions faced by Haitian migrants and protest allegations of inhumane treatment by U.S. agents.

Why it matters: It's a thorny proposition both in terms of timing and messaging. Going assures a new wave of negative headlines for President Biden amid sinking popularity. And with congressional deadlines in the coming days over infrastructure, a possible government shutdown and debt-limit crisis, Democrats can't afford to lose any votes in the House.