It is common knowledge at this point that U.S. and China aren’t exactly pals. Coronavirus has only aggravated the issue, with US president Trump seemingly convinced of the virus’ intentional leaking by China.
Previously too, both countries have been engaged in a technological and trading war for a long time now. This trade war ultimately resulted in U.S. banning Huawei from not only operating in the states but from also using any American software altogether. However, it seems like the U.S. does not mind “data threats” when it has something to ask, as reports suggest that the country might allow its firms to work with Huawei to set standards for 5G use.
The U.S. Commerce Department is looking to roll out a new rule, which would essentially allow U.S. companies to “participate in standards bodies where Huawei is also a member,” reports Reuters. This comes after multiple experts highlighted the disadvantage that US has, when it comes to setting global standards for 5G tech.
Sources close to this new rule’s drafting told Reuters, that the disadvantage became even more stark, at standards setting meetings, where protocols and technical specifications are developed that allow equipment from different companies to function together smoothly. U.S. engineers fell short on words, while Huawei took the charge. This is not sitting well with the superpower, who now wants a piece of the action.
US government’s attack on Huawei became the news of the year for the smartphone industry. The fall out was massive, for Huawei was even banned from using Google services, which ultimately played a critical role in the company losing 35% on smartphone sales globally. However, Huawei is the world’s largest telecommunication equipment maker, and has made major strides in the field of 5G development.
The drafting of this new rule comes after the US Commerce Department placed Huawei on its “entity list” in May last year, citing national security concerns. As a result, engineers had to restrict themselves from engaging with Huawei for standard settings or any other discussion for that matter. US companies were also barred from dealing with Huawei, including critical ones such as Google (for Android OS) among others.
The new rule might take some while to come into effect, as it would have to be cleared by other departments after it passes from Commerce. But needless to say, Huawei might have found the tool it needed to get back into the U.S. market.
As of yet, this provision only includes Huawei, and other Chinese companies on the “entity list” will remain unaffected.
Standard setting is very effective for reeling in big bucks, as it allows patented technology from companies to be considered essential to the standard. This can help increase companies gain their profits by billions. Huawei is the world’s largest telecom equipment maker, and is among the select few to have first-hand experience in working with 5G tech.
