U.S. Wants to Work With Huawei

Written by Jennifer Clark
Posted June 17, 2020

Do you remember when the U.S. was suggesting that other countries ban Huawei?

Well, it looks like the U.S. is going a different direction when it comes to 5G and China’s Huawei. On Monday, the U.S. will amend its prohibitions on U.S. companies doing business with Huawei.

The U.S. wants to begin working together to set standards for the next-generation of 5G networks. U.S. Commerce Secretary Wilbur Ross said:

The United States will not cede leadership in global innovation. The department is committed to protecting U.S. national security and foreign policy interests by encouraging U.S. industry to fully engage and advocate for U.S. technologies to become international standards. 

It was last year when the U.S. placed Huawei on the Commerce Department’s “entity list” Doing this restricted sales of U.S. goods and technology to the company. This posed a problem for U.S. technology companies. They were unsure of what technology or information they were allowed to share, which reduced these companies' involvement in 5G and was giving Huawei a stronger hold on the market.

Naomi Wilson, senior director of policy for Asia at the Information Technology Industry Council, that represents companies including Amazon Inc, Qualcomm Inc, and Intel Corp., had this to say about the situation:

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Confusion stemming from the May 2019 entity list update had inadvertently sidelined U.S. companies from some technical standards conversations, putting them at a strategic disadvantage.

She went further on to say:

This much-needed clarification will allow companies to once again compete and lead in these foundational activities that help enable the rollout of advanced technologies, such as 5G and Ai, across markets.

Because of the confusion last year, U.S. companies were hesitant on participating in the formation of so-called standards, which are specifications and rules that govern how certain technologies work. The U.S. wants companies from the U.S. to be at the table and participate in the formation of these standards, especially for 5G.

Standards are very important to technologies. It is the reason we can go throughout the world and use Wi-Fi easily in most places on the globe. That ease is because the industry has created a set of standards for technology. Making it easy and seamless for different devices or systems around the world to work together. 

The U.S. didn’t want just Huawei making those standards, so this week they made the announcement that U.S. companies can work with Huawei on 5G standards. The U.S. needs to stay in the race. It would be bad news for the U.S. if American technology companies would losing a sense of competitiveness in the 5G market.

The Department of Commerce said:

U.S. participation and leadership in standard-setting influences the future of 5G, autonomous vehicles, artificial intelligence, and other cutting-edge technologies.”

China isn’t still developing its technologies and behind the U.S. it’s competing directly with the U.S. and it’s important that the U.S. doesn’t lose its footing in any of these new and emerging technologies. 

Until next time, 

Jennifer Clark
Pro Trader Today
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