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Huawei
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US tech firms to remain involved with Huawei on 5G standards as Washington eases hard line

  • The Trump administration announced a rule change on Monday that ensures US tech firms can work with Huawei in international 5G standards-development activities
  • That marked a rare move from Washington to allow continued cooperation with Huawei, which was put on the US trade blacklist last year

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China is now estimated to account for 35 per cent of 5G standard-essential patent declarations, about 15 per cent of which come from Huawei Technologies. By comparison, US companies’ share is estimated at roughly 13 per cent. Photo: Reuters
Bien PerezandCelia Chen
Major US companies will remain engaged in developing a global 5G mobile standard, as Washington seeks to keep them in the same room as Huawei Technologies, which is already ahead in drawing up the specifications.

The US Commerce Department and other agencies signed off on a rule change on Monday that ensures Huawei’s inclusion in a US trade blacklist will not prevent American companies from international 5G standards-development activities.

“This is not a friendly gesture by the US, but simply a reflection on its part that it is too late and too expensive for any country to develop its own 5G standard,” Jefferies equity analyst Edison Lee said on Tuesday.

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Lee said feedback from US tech companies likely convinced the Trump administration that it is not realistic for the US to create its own version of 5G. Large US firms, including Intel Corp and Qualcomm, have already contributed plenty to 5G standards under the 3rd Generation Partnership Project (3GPP), an international collaboration of seven telecoms standard development organisations that draw up complete mobile system specifications.

In a statement released late on Tuesday, Huawei said it wants “to continue holding sincere discussions in relation to standards for new technologies with our counterparts, including those in the US”.

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“Inclusiveness and productive dialogue will better promote the formulation of technical standards and encourage the healthy development of the industry and the global economy,” the company said. “Huawei’s stance remains unchanged on these matters.”

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