US amends ban to allow companies to work with Huawei for developing 5G standards review

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The USA has declared it has amended the ban on US firms doing business with Huawei. The move entails allowing US companies to share information regarding technology with Huawei for the purpose of developing joint standards without requiring an export license.
US Secretary of Commerce Wilbur Ross said, however, that the change in policy is not a softening about the government’s stance against Huawei, which remains put on the Entity List. Instead, the amendment was made to ensure US businesses are still able to contribute to important standards-developing activities, which Huawei has a strong involvement in, for 5G, artificial intelligence, autonomous, and other technologies.
“The United States won’t cede leadership in global innovation. This activity recognises the value of harnessing American creativity to advance and protect our economic and national security,” Ross said.
See also: Huawei hits back as UK takes a different look at 5G role
“The division is committed to protecting US national security and foreign policy interests by supporting US business to fully engage and advocate for US technology to become global standards.”
The statement follows Washington’s recent decision a month to clamp down Huawei’s semiconductor supply, with firms needing an export licence to sell to the Chinese giant.
North of the border, Canadian telcos have also effectively blocked Huawei out of their 5G network assembles by signing deals with the Chinese giant’s rivals instead. The Chinese community equipment provider is also banned in Australia and hasn’t made inroads in New Zealand later GCSB prevented Spark from utilizing Huawei kit in November 2018.
Meanwhile, Huawei’s competitor Nokia was chosen by China Unicom to help construct its 5G standalone network in China. Nokia announced on Monday that it had been awarded around 10 percent of China Unicom’s 5G core system buildout.

Huawei's competitor

The Finnish network equipment provider will help set up connections, provide bandwidth management, scale and protected networks, and start up the 5G network to support new use cases like network slicing.
Nokia also announced on Monday it has partnered with Broadcom to create processors for 5G equipment. It’s Nokia’s third such deal, following ones with Intel and Marvell.
Like Nokia, Ericsson announced last week it had won 5G contracts in China, having signed agreements with three of the country’s leading telcos: China Unicom, China Telecom, and China Mobile. Ericsson did not supply details of the deals.
In announcing its 5G contracts, Ericsson added that it might undergo a hit of approximately 1 billion Swedish krona during the second quarter from asset write-downs of pre-commercial product inventory for the Chinese industry.
“The margins during the next quarter of 2020 are expected to become negative as a result of high initial costs for new products,” Ericsson said.