22 June 2020
The United States is now allowing the companies to work with Huawei on developing the standards for 5G networks. This is the only privilege that the US government is giving and the trade ban between US companies and the Chinese multinational company is still there.
The United States added Huawei to the entity list under which the latter is not allowed to make use of US goods and technology. But the Commerce Department is bringing a slight change in the rule and allowing the US companies to work together on setting standards for next-gen 5G networks.
Before this rule change, American companies were required to obtain a special license from the Commerce Department to have any business dealings with Huawei and its affiliates. Now, this exemption does not require any special license to process things further. However, all other business dealings still come under those stricter rules that the US formed last year for Huawei.
Under the exemption, the participating companies are allowed to disclose US technologies to Huawei without a license. The exception comes in favor of 5G technologies since it is for the purpose of 5G standards development.
Reportedly, according to the Commerce Department announcement,
The amendment is meant to ensure Huawei's placement on the entity list "does not prevent American companies from contributing to important standards-developing activities despite Huawei's pervasive participation in standards-development organizations.
Huawei leads in setting 5G standards and contributing to 5G standards development. Several tech companies in the US have warned before that a complete ban on Huawei would hinder the US in participating in the global 5G standards-setting process. It now appears the US government has understood the change in the ban is required.