Caixin
Jun 16, 2020 08:40 PM
BUSINESS & TECH

U.S. Companies Allowed to Work With Huawei on 5G Standards

What’s new: The U.S. government announced on Monday a new rule allowing U.S. companies to work with Chinese telecom giant Huawei Technologies Co. Ltd. on setting global industry standards for next-generation 5G networks. 

“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,” said U.S. Department of Commerce Secretary Wilbur Ross in a statement.

The background: The U.S. government placed Huawei on its “Entity List” in May 2019, restricting sales of American goods and technology to the company. However, the move also hindered U.S. companies’ participation in standard-setting organizations to which Huawei is a big contributor, leaving U.S. businesses at a disadvantage.

The U.S. government said the latest rule is meant to ensure Huawei’s placement on the Entity List in May 2019 does not “prevent American companies from contributing to important standards-developing activities.”

Quick Takes are condensed versions of China-related stories for fast news you can use.

Related: Update: U.S. to Allow Cooperation With Huawei on 5G Standards

Contact reporter Mo Yelin (yelinmo@caixin.com) and editor Marcus Ryder (marcusryder@caixin.com)

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