U.S. eases Huawei ban to work together with setting 5G standards

U.S. eases Huawei ban to work together with setting 5G standards

Huawei can now work with the U.S. in setting standards for next-generation technologies, particularly with 5G.

With the rising trend of 5G capable devices, other countries such as the U.S. are trying to get involved with this technological innovation despite its tensions with China.

In the U.K., Huawei tried to convince its media to adapt to 5G technology but the British government is planning to reduce China’s involvement in the British networks due to cybersecurity issues.

China has been working silently behind the scenes since last year and a recent report this year showed that they have built 130,000 5G base stations.

In line with the current technological trends that are happening, it looks like the U.S. has realized the potential of the 5G technology and is slightly softening up on Huawei as a result.

Commerce amends rules for U.S. participation with Huawei

A recent press release from the Department of Commerce said that U.S. Secretary of Commerce Wilbur Ross announced a new rule allowing the U.S. to contribute to the standards-development activities in the telecommunications sector.

In addition, he clarified that the U.S. will not cede leadership in global innovation. Furthermore, the Department of Commerce also emphasized that they are committed to protecting U.S. national security and foreign policy interests.

Huawei was recently mixed up in the crossfires of the U.S.-China trade war, however, with this recent announcement from the U.S., investors shall see if this will affect positive global sentiment for the company.

The U.S. fear of missing out in the 5G race

Before the emergence of 5G technology, American and European technology firms have been essential players in setting standards for the last generation of technology.

But with the next generation of mobile internet rapidly evolving, other countries are getting their hands on implementing 5G.

According to Reuters, the U.S. and South Korea attempted to launch 5G services in their respective countries last year. However, some weren’t convinced by its capabilities due to its cost for deployment.

This year, China has been keen on improving its influence by revealing a project for setting next-generation technology standards and other countries are joining the bandwagon once again.

But news about 6G developments in Huawei is slowly emerging as well, according to an article from South China Morning Post last January. It just goes to show that in terms of advancement in telecommunications, China seems to be taking the lead.

In addition, Huawei has also been aggressive in releasing new smartphones equipped with Qualcomm chipsets for next year.

The question remains for investors who are planning to bank their money on the technology sector in the long run amid the U.S. protests and tensions China has with Hong Kong as well as the ongoing coronavirus pandemic.

Featured image courtesy of ADMC/Pixabay

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