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U.S. Commerce Department to alter business restrictions on Huawei

U.S. Commerce Department to alter business restrictions on Huawei
U.S. Commerce Department to alter business restrictions on Huawei

The United States Commerce Department will reportedly revise its prohibition on U.S.-based companies pertaining to Chinese tech giant Huawei Technologies Co. This will apparently enable the companies to work together on establishing standards for next-gen 5G networks.

While confirming the action in the statement, U.S. Commerce Secretary Wilbur Ross stated that the country will not compromise its position as a leader in innovation. He added that the department intends to protect the national security as well as the foreign policy interests of the country.

The United States had reportedly placed Huawei on the entity list of Commerce Department, which restricted the sale of U.S. technologies and goods to the company.

Following the recent statement, industry & government officials in the U.S. claimed that by putting Huawei in the entity list, the country was at a disadvantage in standards settings, wherein companies created specifications to enable equipment from various companies to operate together. Additionally, the uncertainty surrounding the information or technology the U.S. companies would use, prompted Huawei to speak up.

Senior Director of policy for Asia at ITI Naomi Wilson was reported saying that the entity list update of May 2019 had not only led to confusion but had also put U.S. companies at a strategic disadvantage, since they were sidelined from technical standards conversations.

Naomi further mentioned that the recent clarification will enable companies in the U.S. to once again lead and compete in these foundational activities which in turn will further allow for development of advanced technologies, including AI and 5G.

Sources also cited that U.S. Secretary of State Mike Pompeo will meet with Chinese authorities in Hawaii amidst the increasing tensions between United States and China.

For the uninitiated, the fifth-generation, or 5G wireless networks are anticipated to power various technologies, ranging from self-driving cars to high speed video transmissions.

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Bhushan Tambe

A qualified computer graduate, Bhushan Tambe always nurtured a passion for words. Post his education, he decided to transform his penchant of penning down poetry and stories into a full-time career. Presently, Bhushan writes numerous articles for and a few other websites, on subjects spanning business, finance, and the like.