Major US companies will remain engaged with Huawei in developing global 5G mobile standards. The US Commerce Department and other agencies on Monday signed off on a rule change that ensures Huawei’s inclusion in a US trade blacklist will not prevent American companies from international 5G standards development activities.
On Friday, May 15th 2020, the US commerce department said it would amend last year’s blacklisting to stop Huawei and its affiliates from buying computer chips that had been made or designed with US equipment including conducting any business with American companies including Google which saw the company go as far as coming up with own OS, Harmony OS. A move that will see American companies have have a chance to participate in the formation of critical standards that govern technology.
According to the new rule, the US Department of Commerce wishes to clarify that U.S firm scan still work with Hauwei in standard-setting bodies despite the ongoing ban. This means any company that wishes to manufacture computer chips to Huawei’s designs with US tools now needs to apply for a licence.
“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,” U.S. Department of Commerce Secretary Wilbur Ross said in a statement.
“This is not a friendly gesture by the US, but simply a reflection on its part that it is too late and too expensive for any country to develop its own 5G standard,” Jefferies equity analyst Edison Lee said on Tuesday.
The US has more to lose if their companies are cut off from further participation in that process,” Jefferies’ Lee added. “Huawei has leading patent shares in 5G, which could rise further if US companies stop contributing.”
Also, it’s unrealistic for the US to create its own version of 5G. There is a high concern that American technology firms could lose their competitiveness.