US Companies Get Approval To Work With Huawei On 5G Standards

The United States Commerce Department has cleared the way for U.S. companies to work with Huawei in the development of standards for upcoming 5G networks.

What Happened

On Monday, Wilbur Ross, the secretary of commerce, announced a new rule allowing U.S. companies to contribute to 5G standards-development activities. This will ensure international functionality and interoperability, as well as safety.

Ross said, “The United States will not cede leadership in global innovation. This action recognizes the importance of harnessing American ingenuity to advance and protect our economic and national security.”

The new rule guarantees that despite Huawei’s placement on the Entity List on May 19, U.S. companies will now be able able to contribute to activities.

Why It Matters

According to the commerce department, the participation of U.S. companies in determining 5G standards is important because it influences the future of 5G, autonomous vehicles, artificial intelligence, and other emerging technologies.

The rule change cannot be viewed as the lowering of U.S. resolve against Huawei, however, the addition of the Chinese firm to the entity list had put U.S. companies on the back foot with regards to setting standards.

U.S. companies were uncertain about what technology or information they were allowed to share, resulting in Huawei getting a stronger voice on standards, reported Reuters.

The announcement from the commerce department will allow U.S. firms to compete and participate in foundational activities related to emerging technologies.