The U.S. government confirmed Monday that it will modify a ban on U.S. companies doing business with Huawei to allow them to collaborate on next-generation 5G network standards, according to Reuters.
Reuters previously reported that the U.S. Department of Commerce and other government agencies signed off on the rule change, according to sources familiar with the situation. Now awaiting publication in the Federal Register as early as Tuesday, local time Posted.
U.S. Commerce Secretary Wilbur Ross issued a statement to Reuters confirming reports that the Department of Reports of imminent action.
The statement said: "The United States will not cede leadership in global innovation. department is committed to protecting U.S. citizens. National security and foreign policy interests by encouraging U.S. industry to fully engage and advocate for U.S. technologies to become international standards."
The U.S. government put Huawei on the U.S. Commerce Department's so-called "entity list" last year, citing national security reasons for restricting the Sale of U.S. goods and technology to the company.
Industry insiders and government officials say the rule change should not be taken as a sign that the U.S. is weakening in its resolve over Huawei restrictions The company pointed out that Huawei puts the U.S. at a disadvantage in terms of standard-setting.
Because U.S. companies were unsure what technology or information they were allowed to share, some U.S. engineers reduced their involvement so as to Gives Huawei a bigger voice.
The Commerce Department publicly announced the move later on Monday. It noted that U.S. participation in standards-setting “influences the future of 5G, autonomous vehicles, artificial intelligence and other cutting-edge technologies.”
"Confusion stemming from the May 2019 entity list update had inadvertently sidelined U.S. companies from some technical standards conversations, putting them at a strategic disadvantage," said Naomi Wilson, senior director of policy for Asia at the Information Technology Industry Council, which represents companies including Amazon.com Inc, Qualcomm Inc and Intel Corp.
Kevin Wolf, a Washington trade lawyer, said the amendment "would could go a long way to help the U.S. companies maintain their leadership in the International Standards Organization without compromising the government's goals for Huawei."
In the telecommunications industry, 5G networks are expected to form the basis for a range of products and services, from high-speed video transmission to self-driving cars. .
