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
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.
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”.
“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.”
US firms can work with Huawei on 5G standards, Commerce Department says
The stakes are high for US companies to remain in these standards discussions because 3GPP is now at work on introducing Release 16 of the next-generation mobile technology’s global standard. This involves support for new applications such as autonomous driving, smart factories and remote surgeries in the health care sector – among a range of innovations that are expected to help fuel economic growth for countries over the next decade.
“The US has more to lose if their companies are cut off from further participation in that process,” Jefferies’ Lee said. “Huawei has leading patent shares in 5G, which could rise further if US companies stop contributing.”
China’s road to 5G has been well planned. In 2012, two years before China Mobile launched 4G services on the mainland, various Chinese entities joined an international initiative to research and develop 5G.
The world’s second largest economy is now estimated to account for 35 per cent of 5G standard-essential patent declarations, about 15 per cent of which come from Shenzhen-based Huawei, according to Lee, citing data from German research firm IPlytics. By comparison, US companies’ share is estimated at roughly 13 per cent, he said.
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When the US added Huawei to its trade blacklist, concerns were raised about how 3GPP could break down, cut short global 5G standards development and negatively affect the infrastructure upgrade plans of mobile network operators around the world.
“Allowing US companies to work with Huawei in the [standards-setting] process ensures that all 5G vendors are in a position to compete in the future,” said Paul Haswell, a partner who advises technology companies at international law firm Pinsent Masons. “Still, it appears unlikely that restrictions on Huawei will be lifted any time soon.”
