US equipment manufacturer Flextronics, which seized part of Huawei’s property in China, is likely to be put on China’s unreliable entity list because the practice violated domestic laws, Chinese analysts told the Global Times. 

 Flextronics privately detained materials and equipment belonging to Huawei worth more than RMB 700 million ($102 million) for more than one month after the Trump administration put the Chinese company on a blacklist in May. After Huawei was placed on the US Entity List on May 16, which bars US companies from selling products and services to it without permission, Flextronics, halted its cooperation with the Chinese company in the global markets. 

 If Huawei signed a contract with Flextronics’ company registered in Zhuhai, China, the use of US domestic laws to detain Huawei’s materials in China at the very least constituted a violation of the territorial jurisdiction of Chinese laws and a problem of default, said Huo Zhengxin, a professor at the School of International Law of the China University of Political Science and Law.

 China’s unreliable entity list is in the process of being finalized, according to China’s Ministry of Commerce.

Huaxin Securities, the Chinese partner of Morgan Stanley’s securities joint venture, said it is selling a 2% stake for at least RMB 376 million ($55 million) and any potential buyer will have until July 29 to submit a bid, said Caixin.

Shanghai International Trust, JPMorgan’s local partner, said on Monday that it will cede control of its asset-management venture for RMB 241 million. Both American banks, which currently hold a 49% stake in their respective ventures, have indicated they’ll raise their interest to the maximum 51%, despite having to pay hefty premiums in both cases, reported Caixin.

The minimum asking price in Morgan Stanley’s securities venture, Morgan Stanley Huaxin Securities Co., is nearly 15 times the appraised value, according to Bloomberg calculations based on numbers in the filing. For JPMorgan’s fund venture, China International Fund Management, the price represents about a 33% premium.

Google has suspended all business with Huawei that requires the transfer of hardware, software and technical services except those publicly available via open source licensing after the US issued a ban on products made by the Chinese telecoms company, said Reuters.

The move could deter Huawei’s smartphone business outside China as the tech giant will immediately lose access to updates of Google’s Android operating system, reported Reuters. Future versions of Huawei smartphones that run on Android will also lose access to popular services including the Google Play Store as well as Gmail and YouTube apps.

A Google spokesperson said the company is “complying with the order and reviewing the implications” without giving details.“Huawei will only be able to use the public version of Android and will not be able to get access to proprietary apps and services from Google,” the source added.

In addition, the Chinese telecom company remains heavily dependent on outside suppliers for chips, especially US companies, in key areas such as base stations and chip-making. Huawei has said it imports about 30% of its components from US firms, with those components worth about $11 billion annually.

Responding to this, Huawei executives have said that the company has been developing its own chips for years, anticipating an extreme scenario of this nature.