American companies are allowed to work with Huawei

The United States government alleviated prohibition of Huawei's activity in its territory

Huawei 5G logo on a smartphone screen
Photo: Shutterstock
  • US and Huawei will play a role in hashing out the parameters for the next-generation of 5G wireless technology;
  • The decision alleviates restrictions imposed by American Entity List.

The US has eased the veto against the Chinese Huawei and now American companies can work with Huawei to set 5G network standards. According to the Department of Commerce, Huawei’s placement on the Entity List in May 2019 doesn’t prevent American companies from contributing to important standards-developing activities despite Huawei’s pervasive participation in standards-development organizations, according to TechCrunch and Valor Econômico.

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Since Huawei was placed on the United States Entity List, American companies have been instructed to obtain a special license from the Department of Commerce to negotiate with Huawei and its affiliates. Now it will change so both US and Huawei play a role in hashing out the parameters for the next-generation wireless technology.

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“The United States will not cede leadership in global innovation. This action recognizes the importance of harnessing American ingenuity to advance and protect our economic and national security,” Commerce Secretary Wilbur Ross said, in a statement. “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.”

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