Google has banned Huawei from parts of its Android operating system, meaning some devices will not receive updates to Google apps.
It comes after US President Donald Trump added Huawei to the US 'Entity List', a list of organisations US companies cannot work with unless approved by the government.
Existing Huawei users will have access to updates to the Android operating system, as well as the Google Play Store and Google apps, such as YouTube and Maps. However, future versions of the software may not be available on future devices.
Google said it was "complying with the order and reviewing the implications", while Huawei's boss Ren Zhengfei told Japanese news outlets that the company has "already been preparing for this".
The US has led a backlash against Huawei in the West over fears that holes in its technology pose security risks and could be utilised by the Chinese government as a spying tool.
It also comes amid significant tensions over trade tariffs between the US and China. After the US doubled trade tariffs on $200 billion worth of Chinese products, Chinese President Xi Jingping called for 'openness', which many have linked to the trade war.