Department of Commerce to Allow US Companies Work With Chinese to Develop 5G and Other Standards

CircleID CircleID: A new rule announced by the U.S. Department of Commerce on Monday enables American companies to contribute to standards-development activities in the telecommunications sector more fully. The news quickly generated optimism within the global telecom industry that interpreted the new change as a possible indication for the relaxation of U.S. ban against the Chinese mobile giant Huawei. Wilbur Ross, U.S. Department of Commerce Secretary, however, has emphasized in Monday’s release that the new ruling is merely to ensure the United States maintains leadership in global innovation. Noteworthy:

— “This action is meant to ensure Huawei’s placement on the Entity List in May 2019 does not prevent American companies from contributing to important standards-developing activities despite Huawei’s pervasive participation in standards-development organizations.” (U.S. DoC)

— “Huawei is in even bigger trouble after U.S. standards move,” writes Morris Lore in Light Reading: “While this week’s decision protects the global standards-setting system, it is mainly a defensive measure aimed at safeguarding U.S. interests. US authorities have merely recognized that boycotting groups such as the 3GPP, the mobile standards body, would have been a self-mutilating act. It could have made Huawei, already one of the most powerful companies in that community, look even stronger next to U.S. firms.” (Light Reading)
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