Google led a host of US tech companies to cut ties with Chinese smartphone giant Huawei on Monday under a blacklist order from President Trump which has crippled the company's global position and deepened fears of an all-out trade war

Google's share prices fell by 2.5 percent on Monday and lagged all day after it was forced to suspend business with Chinese tech giant Huawei under strict orders from President Trump, a move which has put pressure on the global supply chain and stoked fears of a tech cold war.

The announcement not only drove Google's stock down but it impacted the US chip-makers who followed suit afterwards by separating themselves from Huawei.

Intel Corp, Qualcomm Inc., Xilinx Inc. and Broadcom Inc. have all stopped doing business with the Chinese tech giant and their shares were down by four percent on Monday.

Apple's shares dropped by more than three percent and struggled to recover.

All new Huawei phones will not have access to apps including Gmail, Google Maps and the Google Play store. Any phones which already have Google apps installed will be able to keep them but they will not get updates.

Huawei-users will still be able to access the open-source version of Google's Android services but it is drastically scaled back compared to the alternative version and will likely turn users towards competitors who have not been blacklisted.

It was singled out over fears it could use its technology on behalf of the Chinese government spies to harvest sensitive information.

Huawei phones cannot be bought in the US officially and in 2017, it accounted for only two percent of the smartphones in America but the company ships more than 200million per year.

The Google suspension has little impact on US consumers however it triggered a widespread sell-off of tech shares in US markets on Monday morning and was also felt in Europe and Asia.

Huawei's boss said last week that 'all options' were 'on the table' and that it would consider legal action if Trump followed-through on the threat.

It fans the flames of the US's ongoing trade dispute with Beijing and has led to the prospect of China launching its own, more competitive tech services to rival those of the West in addition to the likelihood of a crackdown on all US businesses which have interests in there.

The fallout included;

Apple shares falling by more than three percent amid its increased vulnerability to Beijing

A sell-off of major tech stocks which drove the Dow Jones index down by 22 points

Intel Corp, Qualcomm Inc., Xilinx Inc. and Broadcom Inc. shares dropped by 4%

Ripple effects in Europe where Germany's Infineon Technologies has also cut ties with Huawei

Increased fears and questions over how Beijing will retaliate against US businesses

A flurry of anti-Apple and anti-US messages posted on Weibo, China’s version of Twitter, many calling for an Apple boycott

Peter Garnry of Saxo Bank, it was ‘effectively the starting signal of a technology Cold War’

Now, Huawei, which is building its own 5G network, is primed to launch a competitor service to Android where none stood before

There are also fears of how Beijing will crackdown on any other US businesses which have interests in China

Among questions is what China will do with two Canadians being held on espionage charges

The decision was the latest development in Washington's ongoing trade dispute with Beijing and comes after months of scrutiny and threats against Huawei.

Google has said nothing of the decision other than that it is 'complying' with the order.

The move is the latest round of tariffs, sanctions and threats from President Trump and China's Xi Jingping who have failed to reach a trade deal

'We are complying with the order and reviewing the implications.

'For users of our services, Google Play and the security protections from Google Play Protect will continue to function on existing Huawei devices,' a spokesman told DailyMail.com on Monday.

But the decision rocked Wall Street and the global markets.

'What we are witnessing is a potential reconfiguration of global trade,' Garnry of Saxo Bank said.

There are now fears over how Beijing will retaliate and how, in a business sense, Huawei may fight back.

It has already said it is rolling out its own 5G network and services which it said it would sell to Apple, which has been unable to source its own.

With the new cut-off from Google's Android, Huawei has more motivation than ever to roll out its own competitive service.

In a more widespread sense, the Chinese government could crackdown on American businesses with factories in China.

Apple's share price also suffered because it is now more vulnerable to Chinese retaliation

The announcement led to a widespread sell-off of tech stocks which drove the Dow down 22 points

HOW CHINA COULD TARGET APPLE AND OTHER US COMPANIES IN RETALIATION FOR HUAWEI BAN China could retaliate against America for its treatment of Huawei in a number of devastating ways - the most likely would be to targeting US companies that do business in the region, such as Apple. Greater China ranks third among the regions that generate the most revenue for the company, behind the US and Europe. Additionally, the majority of Apple's supply chain consists of Chinese companies that manufacture key components like sensors, OLED displays and other parts used in the iPhone. If Apple can't rely on Chinese manufacturers, it may be forced to move to suppliers in the US or elsewhere, which could result in an increase in iPhone prices. Additionally, some Chinese consumers have already latched onto a growing 'Boycott Apple' movement in retaliation, which means Apple may suffer lasting damage to its brand in the region as a result of the Huawei ban. Apple isn't the only US firm that's likely to feel an impact. Tech companies that rely on Huawei as a major will also be hurt. 'The announced tariffs, if implemented, will be the gut punch for tech companies and its suppliers,' said Wedbush Securities analyst Dan Ives. Intel, Microsoft, Qualcomm Broadcom and Micron provide components or services that are used in Huawei products, while Corning glass and Dolby speakers are used in Huawei phones. What devices could be impacted by the decision? Existing and new Huawei phones will be hurt the most when it comes to security updates. These devices will no longer be able to access over-the-air security updates supplied by Android, as well as new software versions, like Google's upcoming Android Q. Google ships Android security updates to device owners automatically. But Huawei devices will be forced to use the open source version of Android, which means the firm will learn of security updates the day they're issued and, as a result, will have to ship them out to users manually. This could leave Huawei devices vulnerable to attacks or other security flaws in the time that it takes to download new security updates. Huawei would also be left out of future Android software updates. Since it's using an open source version, it can't legally market its phones as being Android devices. The ban will most likely affect Huawei's line of Mate laptops as well. Huawei's computer business relies heavily on chips made by Intel, Qualcomm and others, as well as Microsoft's Windows operating system. Since these companies aren't doing business with Huawei, it's not yet clear what this means for future laptops made by the firm.


'They could search your factory.

'At 5 o’clock in the morning, inspectors show up and demand to see your books,' said Adam Segal, director of digital and cyber security at the Council on Foreign Relations, said.

As one of Android’s key global partners, we have worked closely with their open-source platform to develop an ecosystem that has benefited both users and the industry. Huawei will continue to provide security updates and after-sales services to all existing Huawei and Honor smartphone and tablet products, covering those that have been sold and that are still in stock globally. Huawei's response

Germany’s Infineon Technologies fell in early trading Monday after the Nikkei reported it halted shipments to the Chinese company in the wake of the US ban.

Shares of STMicroelectronics and Austrian-based AMS were also hit.

Huawei is believed to have been stockpiling chips that will allow it to keep producing products for the next three months.

However its reliance on US-made products puts its future at risk.

'The extreme scenario of Huawei’s telecom network unit failing would set China back many years and might even be viewed as an act of war by China.

'Such a failure would have massive global telecom market implications,' analyst Ryan Koontz of Rosenblatt Securities said on Monday.

Huawei has previously said it is working on its own mobile operating system for use in the event of such blocks.

It also said it would consider selling its 5G technology to Apple which has not yet been able to produce its own.

Apple, which successfully uses its own iOS operating system for its iPhones and other hardware, is now particularly vulnerable to retaliation from Beijing.

On Monday, HSBC cut Apple's price-target citing the trade tensions as an indicator that it may have to increase product prices and, as a result, drive down appetite for its goods.

Coupled with a global sell-off of tech shares which happened as a result of the Google-Huawei announcement, it drove prices down by more than 3 percent.

Android issued a tweet from their official account stating 'services like like Google Play & security from Google Play Protect will keep functioning on your existing Huawei device'

Patriotic Chinese web users are using an anti-U.S. viral song to support Beijing during the trade war A song about the trade war has taken off in China amid growing anti-US sentiment in the country. 'If the perpetrator wants to fight, we will beat him out of his wits,' the lyrics of the privately produced song titled Trade War read. It has gathered more than 3.2 million views on social media platform WeChat. China has been rallying public support around its position in a trade dispute with the United States, taking a tougher rhetoric as Washington raised tariffs on US$200 billion worth of Chinese imports and placed China's telecom giant Huawei on an export-control list. The song, released by producer and lyricist Zhao Liangtian, is set to the tun of an anti-Japanese anthem from the 1960s film Tunnel War - in which a Chinese town defends itself from invasion. It opens with a male chorus singing: 'Trade war! Trade War! Not afraid of the outrageous challenge! Not afraid of the outrageous challenge! A trade war is happening over the Pacific Ocean!' 'I chose Tunnel War because that is reminiscent of the similar situation that China is facing today,' retired official Zhao Liangtian told Bloomberg News on Monday. 'Since the trade war broke out, I felt the urge to do something,' Zhao said. He is also an accredited member of the Poetry Institute of China, which is affiliated with the party’s propaganda department. The song, released by producer and lyricist Zhao Liangtian, is set to the tun of an anti-Japanese anthem from the 1960s film Tunnel War - in which a Chinese town defends itself from invasion. Above, the lyrics read 'we will beat him out of his wits' 'If the perpetrator wants to fight, we will beat him out of his wits,' the lyrics of the privately produced song titled Trade War read. It has gathered more than 3.2 million views on WeChat State broadcaster CCTV's movie channel changed its prime-time schedule from live-streaming the red carpet of Asian Movie Week to a number of post-war film classics, including Heroic Sons and Daughters (1964) (right), Battle on Shangganling Mountain (1954) (left) Zhao told Bloomberg that he wrote the song's lyrics last year and circulated them online, but said they had gone largely unnoticed until China-US talks faltered. Some of his anti-US poems had been censored by authorities in the past. After US President Donald Trump threatened fresh tariffs earlier this month, Zhao sensed the Chinese government had changed its attitude. He paid 1,600 yuan to finally produce and have other retirees sing the chorus. Chinese state media has also taken an increasingly strident tone, with the ruling Communist Party's People’s Daily publishing a front-page commentary on Friday that evoked the patriotic spirit of past wars. Surprise Attack (1960) was aired on Saturday on CCTV during prime-time. The film is set during the Korean War, otherwise known in China as the War to Resist American Aggression and Aid Korea State broadcaster CCTV's movie channel on Thursday changed its prime-time schedule from live-streaming the red carpet of Asian Movie Week to a number of post-war film classics, including Heroic Sons and Daughters (1964), Battle on Shangganling Mountain (1954) and Surprise Attack (1960), according to a notice. All the films are set during the Korean War, otherwise known in China as the War to Resist American Aggression and Aid Korea. Hu Xijin, editor of state-owned tabloid the Global Times, tweeted on Sunday that the Battle on Shangganling Mountain should teach the Chinese that 'there's no equal negotiation without fighting' while CCTV said that it is 'using artworks like films to echo with the current era. Advertisement

Huawei said today it would continue to provide security updates and after-sales services to existing smartphone users.

The Shenzhen-based firm said it helped to develop a system that 'benefited both users and the industry.'

The firm's sub-brand Honor said Huawei was 'actively seeking resolution on this'.

Trump has also signed an executive order which allows the government to ban the technology and services of 'foreign adversaries' deemed to pose 'unacceptable risks' to national security.

Government agencies have been banned from using equipment from Huawei and China's ZTE Corp since last year.

Beijing foreign ministry spokesman Lu Kang said officials had noted the latest and would look into it and pay attention to developments.

'At the same time, China supports Chinese companies to use legal weapons to defend their legitimate rights,' he added.

FRESH DOUBT OVER CANADIANS HELD IN CHINESE CUSTODY AS TRADE TENSIONS DEEPEN One Huawei executive, chief financial officer Meng Wanzhou (pictured earlier this month), was arrested in Canada last year and faces criminal charges in the United States Days before the Google severed ties with Huawei, China formally arrested two Canadian citizens it is believed to be holding to pressure Canada into releasing a Chinese telecoms executive, bringing the two men closer to trial on vaguely defined state security charges. Chinese foreign ministry spokesman Lu Kang said Thursday that Michael Kovrig and Michael Spavor have been arrested for allegedly stealing state secrets. 'We always act in accordance with the law, and we hope that Canada will not make irresponsible remarks on China's legal construction and judicial handling,' Lu said. Lu gave no other details. Kovrig is a former Canadian diplomat and expert at the International Crisis Group, and Spavor is a businessman with lengthy experience in North Korea. China had earlier accused the two of conspiring together to steal Chinese state secrets. Canada condemned the 'arbitrary action taken by the Chinese.' Their detention is thought to be in retaliation for Canada's December 1 detention on a US extradition request for Meng Wanzhou, a top executive of Chinese telecom giant Huawei who is accused of violating Iran sanctions. The men were first accused of activities that 'endanger China's security' -- a phrase often used by Beijing when alleging espionage. Michael Kovrig (pictured left), a former Canadian diplomat, was detained in China on December 10. Michael Spavor (right) is a China-based businessman China later announced it suspected Kovrig of spying and stealing state secrets and alleged that Spavor had provided him with intelligence. Two other Canadians convicted of drug trafficking, meanwhile, have been sentenced to death. And Beijing recently blocked Canadian shipments of canola and pork worth billions of dollars. Meng, who is currently fighting extradition to the US, is allowed to live in her Vancouver mansion, although her mobility is limited. Meanwhile, a group of Canadian parliamentarians had earlier complained to Chinese officials that Kovrig and Spavor have been denied access to lawyers, and remain in 'completely unacceptable' detention conditions. Advertisement

The tensions between China and the US arise from the two countries' inability to strike a trade deal.

It has led to months of lingering tension between the world's largest economies.

On Sunday, a US military warship sailed near the disputed Scarborough Shoal claimed by China in the South China Sea on Sunday, the latest in a series of 'freedom of navigation operations' to anger Beijing.

Huawei has been seen by officials in Washington as a front for spying by the Chinese military or security services for months.

It is suspected of helping the government gain access to private, commercial or other information that could compromise NATO and allied intelligence operations.

One Huawei executive, chief financial officer Meng Wanzhou, was arrested in Canada last year and faces criminal charges in the United States.

Meng's arrest set off a diplomatic furor and severely strained Canadian relations with China.

Beijing detained former Canadian diplomat Michael Kovrig and Canadian entrepreneur Michael Spavor on December 10 in an apparent attempt to pressure Canada to release Meng.

The state news agency said that the pair had acted together to steal state secrets.

A Chinese court also sentenced a Canadian to death in a sudden retrial, overturning a 15-year prison term handed down earlier.

Huawei has always denied involvement in Chinese spying and last week unveiled its first 5G-ready smartphone despite the ongoing row.

The company's founder and CEO Ren Zhengfei said Huawei had 'already been preparing' for a U.S. crackdown.