Alphabet's Google (GOOGL) - Get Report has warned the U.S. administration that including it in its ban on Huawei Technologies risks compromising national security, since it can't update its Android operating system on Huawei smartphones, the Financial Times reported.
Alphabet executives have been pushing U.S. officials to exempt it from the current ban exports to Huawei, warning that security could be at risk if it is unable to update its android operating system on Huawei smartphones, which it argues would prompt the Chinese company to develop its own version of the software, according to the FT.
While the sanctions are expected to hurt Huawei in the short term, industry experts say it could force the company - and other Chinese companies - to become self-reliant by developing more home-grown technologies, hurting the dominance of American companies such as Google, the newspaper said.
Google's move comes as the world's two top economies continue to impose tariffs on goods and services moving to and from one another in a battle over what the U.S. administration calls unfair trade practices from China.
Shares of Alphabet gained 0.52% to $1,053.23 in early trading on Friday. They ended the trading day Thursday up 0.3% at $1,047.76.