US Commerce Department said to be drafting rule to let Huawei, US firms work together on 5G standards
The US Department of Commerce is close to signing off on a
new rule that would allow US companies to work with China’s Huawei Technologies
on setting standards for next generation 5G networks, people familiar with the
matter said.
Engineers in some US technology companies stopped engaging
with Huawei to develop standards after the Commerce Department blacklisted the
company last year. The listing left companies uncertain about what technology
and information their employees could share with Huawei, the world’s largest
telecommunications equipment maker.
That has put the United States at a disadvantage, said
industry and government officials. In standards setting meetings, where
protocols and technical specifications are developed that allow equipment from
different companies to function together smoothly, Huawei gained a stronger
voice as US engineers sat back in silence.
The Commerce Department placed Huawei on its “Entity List”
last May, citing national security concerns. The listing restricted sales of US
goods and technology to the company and raised questions about how US firms
could participate in organizations that establish industry standards.
After nearly a year of uncertainty, the department has
drafted a new rule to address the issue, two sources told Reuters. The rule,
which could still change, essentially allows US companies to participate in standards
bodies where Huawei is also a member, the sources said.
The US government wants US companies to remain competitive
with Huawei, Wilson said. “But their policies have inadvertently caused US
companies to lose their seat at the table to Huawei and others on the Entity
List.”
The rule is only expected to address Huawei, the people
familiar with the matter said, not other listed entities like Chinese video
surveillance firm Hikvision.
In adding Huawei to the list last May, the Commerce
Department cited US charges pending against the company for alleged violations
of US sanctions against Iran. It also noted that the indictment alleges Huawei
engaged in “deceptive and obstructive acts” to evade US law. Huawei has pleaded
not guilty in the case.
A Department of Commerce spokesman declined to comment. A
Huawei spokeswoman also declined to comment.
“I know that Commerce is working on that rule,” a senior
State Department official told Reuters on Wednesday. “We are supportive in
trying to find a solution to that conundrum.”
The White House and departments of Defense, Energy, and
Treasury did not immediately respond to requests for comment.
“International standard setting is important to the
development of 5G,” said another senior administration official, who also did
not want to be identified. “The discussions are about balancing that
consideration with America’s national security needs.”
Six US senators, including China hawks Marco Rubio, James
Inhofe and Tom Cotton, last month sent a letter to the US secretaries of
Commerce, State, Defense and Energy about the urgent need to issue regulations
confirming that US participation in 5G standards-setting is not restricted by
the entity listing.
“We are deeply concerned about the risks to the US global
leadership position in 5G wireless technology as a result of this reduced
participation,” the letter said.
In the telecommunications industry, 5G, or fifth-generation
wireless networks, are expected to power everything from high-speed video
transmissions to self-driving cars.
Industry standards also are big business for
telecommunications firms. They vie to have their patented technology considered
essential to the standard, which can boost a company’s bottom line by billions
of dollars.
The ITIC’s Wilson said the uncertainty has led US-base
standards bodies to consider moving abroad, noting that the non-profit RISC-V
Foundation (pronounced risk-five) decided to move from Delaware to Switzerland
a few months ago.
The foundation oversees promising semiconductor technology
developed with Pentagon support and, as Reuters has reported, wants to ensure
those outside the United States can help develop its open-source technology.
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