This archive report was first published on 18 June 2020.
On June 18, 2020, the United States made a significant change to its restrictions on Huawei, allowing American companies to collaborate with the Chinese telecom giant on setting standards for next-generation 5G networks.
The Commerce Department amended its rules to ensure that Huawei's placement on the U.S. entity list does not prevent American companies from contributing to important standards-developing activities, despite Huawei's pervasive participation in standards-development organizations.
As a result, companies are now free to disclose U.S. technologies to Huawei without a license, so long as it is for 5G standards development. This move is a significant shift from the previous restrictions, which required American companies to obtain a special license from the Commerce Department before having any business dealings with Huawei and its affiliates.
However, some governments have limited the use of Huawei's equipment or excluded the Chinese telecom equipment maker from their 5G development entirely. For instance, Canada's telecom providers have effectively locked out Huawei, while the U.K. has reversed its course on Huawei's involvement in British 5G networks after being pressed by the U.S. to exclude it on the grounds of national security.
5G, or fifth-generation wireless networks, are expected to power everything from high-speed video transmissions to self-driving cars in the telecommunications industry.
