Even though the United States continues to crackdown on Huawei and trying to cut it off from its vendors, the U.S. Commerce Department has announced that it will allow American companies to work with Huawei to set standards for the 5G networks.
With this rule change, the companies can disclose U.S. technologies to the Chinese giant without the need for a license but only if the purpose is of 5G standards development. For those who are unaware, Huawei was put on Entity List by the United States last year and now requires any American company doing business with the Chinese company to obtain a license from the government.
The announcement from the Commerce Department says that the amendment is meant to ensure that Huawei’s placement on the entity list “does not prevent American companies from contributing to important standards-developing activities despite Huawei’s pervasive participation in standards-development organizations.”
The change in rule follows the U.S. government’s order last month to clamp down on Huawei’s semiconductor supply. It now requires companies to get an export license to sell to the Chinese giant.
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Although Huawei has not been able to get permission for the 5G infrastructure development in countries like Canada, Australia, and New Zealand, the company has emerged as one of the leading in 5G development.
Huawei is currently ranked first in the world in contribution to 5G standards development, having 3,147 related patents filed as of January 2020. Following Huawei is Samsung, ZTE, and LG Electronics.
Meanwhile, Huawei became the world’s largest smartphone maker in the month of April 2020, surpassing Samsung for the first time. This is quite impressive given that the development comes despite the company has been banned by the United States.
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