Sources:
https://www.ft.com/content/a669d094-bc68-40fc-9d05-9c4d369d32ee
Summary:
To protect the interest of American companies, the United States (U.S.) announced that it has eased earlier sanctions imposed on Huawei. The Department of Commerce approved in a statement a new rule that allows U.S. companies to work with Huawei on setting standards for next generation 5G networks.
According to news agency sources, after nearly a year of uncertainty on restricting the sales of U.S. goods and technology to Huawei due to placing it on the blacklist, the decision of the US Department of Commerce comes to ease the impact of sanctions and restrictions on dealing with the company. This allows U.S. companies to work with Huawei on setting standards for 5G networks in which the company is highly active as it is a member of more than 100 international standards bodies, and also has five 5G R&D centers that employ more than 500 high-level experts. The rule essentially allows U.S. companies to participate in standards bodies where Huawei is also a member.
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. This, according to US government officials and ICT experts, left the U.S. behind and in a weak position in the field of 5G networks.
Experts believe that the U.S. government aims, through the new decision, to keep American companies capable of competing with Huawei, but its previous sanctions have unintentionally caused U.S. companies to lose their position in favor of Huawei.
Huawei has announced in a statement that it is always open to work with all parties on the development of 5G standards and other technologies, including U.S. companies. Huawei also believes that the recent decision by the U.S. administration that prevents American companies from providing them with U.S. technology products are arbitrary and pernicious, and effectively threatens to undermine the entire industry worldwide.
Industry experts confirm that earlier decisions by the US government does not just affect Huawei. It will have a serious impact on a wide number of global industries. In the long run, this will damage the trust and collaboration within the global semiconductor industry which many industries depend on, increasing conflict and loss within these industries.
5G networks are expected to have a significant impact on many industries, as they will be integral to operating everything from high-speed video transmissions to self-driving cars.