U.S. may scale back Huawei trade restrictions to help existing customers

The US has confirmed it will lift its bans on US companies doing business with China’s Huawei. This will allow US companies and the Chinese tech giant to work together to set standards for next-generation 5G networks..

The Commerce Department and other agencies have signed an agreement to change the rules, which is pending publication in the Federal Register shortly, Reuters reported, citing knowledgeable sources.

U.S. Secretary of Commerce Wilbur Ross confirmed this information.

«The United States will not cede its leadership in the space of global innovation. The Department is committed to safeguarding U.S. national security and foreign policy interests by encouraging industry to fully participate in and advocate for U.S. technology to become international standards», – said Ross. 

Commerce Department Publicly Announced Course Change On Monday. It is noted that the participation of the United States in the development of standards «affects the future of 5G, autonomous vehicles, artificial intelligence and other advanced technologies».

The telecom industry expects fifth-generation wireless networks to be deployed in everything from video streaming to self-driving cars..

Last year, the US included Huawei in its so-called «blacklist of legal entities», which restricts trade in technology and products with American companies, citing a threat to national security.

US will ease restrictions on Huawei

The government said the rule change should not be seen as a sign of easing US pressure on Huawei, the world’s largest telecommunications equipment maker.. US companies complained that government restrictions do not have access to the products needed to develop 5G.  

«The confusion stemming from the May 2019 update of the organization blacklist has inadvertently pushed US companies away from certain technical standards, placing them at a strategic disadvantage.», – said Naomi Wilson, Senior Policy Director for Asia at the Information Technology Industry Council.

«The necessary clarification will enable companies to once again compete and lead in these foundational activities that help ensure the adoption of advanced technologies such as 5G and AI in all markets. We look forward to revising this rule and working with the administration to implement it.», – she added.

Reuters reported last month that the amendment had been prepared and is awaiting approval..

US Secretary of State Mike Pompeo will meet with Chinese officials in Hawaii this week due to increased business tensions between the two countries.

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