The US Commerce Department has announced that it will allow American companies to work with Chinese technology company Huawei on setting standards for 5G telecom networks.
Since Huawei was placed on the US entity list 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 the companies to disclose US technologies to the Chinese telecom giant without a license if it is for the purpose of 5G standards development.
Huawei has welcomed the US decision, saying in a statement that it will continue to hold sincere discussions with its counterparts, including those in the United States.
In the telecommunications industry, 5G, or fifth-generation wireless networks, are expected to power everything from high-speed video transmissions to self-driving cars.