The US Commerce Department is reportedly finalizing rules that would allow US companies to work with China’s Huawei to develop 5G technology standards. The effort could potentially prevent a split in the 5G standard between US and Chinese flavors.
- The U.S. Department of Commerce is close to signing off on a new rule that would allow U.S. companies to work with China’s Huawei Technologies on setting standards for next generation 5G networks, people familiar with the matter said.
- The Commerce Department placed Huawei on its “entity list” last May, citing national security concerns. The listing restricted sales of U.S. goods and technology to the company and raised questions about how U.S. firms could participate in organizations that establish industry standards.
- The rule, which could still change, essentially allows U.S. companies to participate in standards bodies where Huawei is also a member, the sources said.
Reuters reported that some US firms have stopped working with China’s Huawei on 5G standards after the Commerce Department blacklisted the company last year. However, citing unnamed sources, Reuters reported this week that the Department of Commerce is close to signing off on a new rule that would allow US companies to work with Huawei – though it could require sign-off from other US agencies as well.
According to some unconfirmed reports from research and consulting firm Strategy Analytics, China’s Huawei provided more overall contributions to end-to-end 5G standards than any other company in the world.
Indeed, geopolitical issues have already cut into some 5G standards work. The 3GPP is the primary global group setting 5G standards.
While none of the companies would offer any reasons for their absence, some in the industry said their decision to skip the meeting could stem from the deteriorating relationship between the US and China.
Further, new legislation passed by US lawmakers and signed by President Trump this year would in part require American officials to participate in the development of 5G standards.
Engineers in some U.S. technology companies stopped engaging with Huawei to develop standards after the Commerce Department blacklisted the company last year. The listing left companies uncertain about what technology and information their employees could share with Huawei, the world’s largest telecommunications equipment maker.
That has put the United States at a disadvantage, said industry and government officials. In standards setting meetings, where protocols and technical specifications are developed that allow equipment from different companies to function together smoothly, Huawei gained a stronger voice as U.S. engineers sat back in silence.
The Commerce Department placed Huawei on its “entity list” last May, citing national security concerns. The listing restricted sales of U.S. goods and technology to the company and raised questions about how U.S. firms could participate in organizations that establish industry standards.
After nearly a year of uncertainty, the department has drafted a new rule to address the issue, two sources told Reuters. The rule, which could still change, essentially allows U.S. companies to participate in standards bodies where Huawei is also a member, the sources said.
The draft is under final review at the Commerce Department and, if cleared, would go to other agencies for approval, the people said. It is unclear how long the full process will take or if another agency will object.
“As we approach the year mark, it is very much past time that this be addressed and clarified,” said Naomi Wilson, senior director of policy for Asia at the Information Technology Industry Council (ITI), which represents companies including Amazon, Qualcomm and Intel.
The U.S. government wants U.S. companies to remain competitive with Huawei, Wilson said. “But their policies have inadvertently caused U.S. companies to lose their seat at the table to Huawei and others on the entity list.”
The rule is only expected to address Huawei, the people familiar with the matter said, not other listed entities like Chinese video surveillance firm Hikvision.
In adding Huawei to the list last May, the Commerce Department cited U.S. charges pending against the company for alleged violations of U.S. sanctions against Iran. It also noted that the indictment alleges Huawei engaged in “deceptive and obstructive acts” to evade U.S. law. Huawei has pleaded not guilty in the case.
A Department of Commerce spokesman declined to comment. A Huawei spokeswoman also declined to comment.