In response, Huawei - the world's second-biggest phone maker - has been ramping up plans for its own operating system, which it wants to release by early 2020, according to Richard Yu, the CEO of Huawei's consumer division. Today the company has delayed the launch of its folding smartphone by three months after a similar device developed by rival Samsung suffered issues with its screen.
Huawei is now cautious after Samsung's disaster with the Galaxy Fold and is taking some actions to make sure history doesn't repeat itself. The world's biggest maker of telecoms network gear was barred from doing business with U.S. tech companies, including Alphabet's Google, whose Android OS is used in Huawei's phones.
Technical concerns, however, aren't its only problem.
The company also plans to use Hongmeng OS for tablets and PCs, as revealed in its trademark description that was approved by the Chinese National Intellectual Property Administration (CNIPA) last month.
"Huawei is in the process of potentially launching a replacement", Williamson said in Mexico City. Hongmeng will support other devices later.
After several years of steady, impressive growth in the global smartphone market, Huawei is seeing the very survival of its core businesses threatened by political tensions between the USA and China.
The most immediate outcome of this trade blacklisting for consumers is the revocation of Huawei's Android licence, which will prevent it from launching new smartphones with Google-certified versions of Android installed.
It was originally slated for a June launch.
Alphabet Inc's Google has earlier said it would no longer provide Android software for Huawei phones after a 90-day reprieve granted by the USA government expires in August. We now have our answer - Huawei's foldable smartphone.
The company has denied its products pose a security threat.
Huawei says its place on the Entity List doesn't impact the Mate X's ability to use Google's Android operating system, since the phone was announced well before the us government took its latest action against the company.
The Finnish company in 2017 secured a new investment to launch the Sailfish China Consortium as part of an effort to build a Chinese version of Sailfish and an alternative to Android. "They're doing it by their own desire because, for many of them, Huawei is one of their major customers", he said.