US to allow companies to work with Huawei on 5G standards

Rule change comes amid concerns of American tech industry being 'sidelined'

20200616 huawei 5g top

Huawei has become a leader in 5G development, and there are worries U.S. companies will be sidelined if they are not able to cooperate with the Chinese tech titan.  © Getty Images

YIFAN YU, Nikkei staff writer

PALO ALTO, U.S. -- The U.S. Commerce Department announced on Monday that it will allow American companies to work with Huawei on setting standards for 5G networks despite Washington's continuing crackdown on the Chinese company.

Since Huawei was placed on the U.S. entity list -- a trade blacklist-- in May 2019, American companies have been required to obtain a special license from the Commerce Department to have any business dealings with Huawei and its affiliates. This rule change allows companies to disclose U.S. technologies to the Chinese telecom giant without a license if it is for the purpose of 5G standards development.

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