U.S. Companies To Work With Huawei?
The U.S. Department of Commerce put Huawei on the entity list May 16 last year, citing national security concerns. However, the new report suggests that the U.S. Department of Commerce is close to signing off on a new rule that would allow U.S. companies to work with Huawei on a new generation of 5G devices.
Since the U.S. government banned Huawei, the engineers in the United States struggle to find the best alternative for Huawei’s 5G patent, which is one of the world’s largest telecommunications equipment maker. Due to last year’s new policy, some of the U.S. telecom industry and some government officials have been expressed fear regarding that it will put the U.S. at a disadvantage.
According to some officials, it is essential to set industry standards that could bring in billions of dollars in profits to the U.S. As we all know, Huawei has 20% of 5G essential patents, which is the world’s number one telecom equipment and 2nd-largest smartphone company. Therefore, the U.S. Commerce Department will now modify its rules that will allow U.S. companies to join the standards of which Huawei is also a member.
The new rules are still in process so that we don’t know how long it will take to develop the new rules. However, according to some source, this rule is only applicable for Huawei and not for companies on the other entities list like ZTE. Anyway, it still needs to be confirmed.
At present, the Huawei has 85,000 valid patents globally, accounting for 90% of invention patents. Besides, according to Naomi Wilson, the US government wants the companies to remain competitive with Huawei. She also mentioned:
“But their policies have inadvertently caused U.S. companies to lose their seat at the table to Huawei and others on the entity list.”Naomi Wilson (senior director of policy for Asia at the ITI)
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