The law, which may still change, essentially enables USA firms to participate in standards bodies where Huawei is also a member, the sources said.
5G or fifth-generation is all about taking the next step in telecommunications. Huawei was blacklisted by the Commerce Department after the May 2019 executive order of President Donald Trump that effectively banned the company from US communications networks. However, a recent report by Reuters has revealed that the country's stance is somewhat loosening with a rule change that allows U.S. companies finally to participate in developing 5G standards with the Chinese tech company.
The amendment comes a little more than a year after the US placed Huawei on the Commerce Department's so-called "entity list", thereby restricting sales of USA goods and technology to the company on national security concerns.
"This action recognizes the importance of harnessing American ingenuity to advance and protect our economic and national security", U.S. Department of Commerce Secretary Wilbur Ross said in the Monday announcement.
Industry and government officials said the rule change should not be viewed as a sign of weakening United States resolve against Huawei, the world's largest telecommunications equipment maker.
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As a result, USA technology companies stopped engaging in standards processes, reportedly giving Huawei a stronger voice in some standards bodies. It's not clear how long the entire process will take, or whether another agency will object.
Chinese manufacturing giant, Huawei, has been at loggerheads with the USA on multiple issues. Whether the claims levelled at the Chinese company are true or false, the company has had to deal with the fallout of the us government's decision to place a ban on American companies' dealings with Huawei. The truth is that the Chinese manufacturer has placed the USA at a disadvantage in the standard-setting. Huawei did not plead guilty in the trial.
The United States Department of Commerce today issued a change to its sweeping Huawei ban.
The U.S. has long claimed that Huawei, a phone and networking equipment maker, maintains a close relationship with the Chinese government.