US companies allowed to work with Huawei on 5G standards

American companies will now be permitted to work with Huawei on developing 5G standards under a new rule announced by the US Commerce Department on Monday.

“The United States will not cede leadership in global innovation,” U.S. Commerce Secretary Wilbur Ross said in statement published Monday. “The department is committed to protecting U.S. national security and foreign policy interests by encouraging U.S. industry to fully engage and advocate for U.S. technologies to become international standards.”

The amendment comes more than a year after the US placed Huawei on a trade blacklist that prohibits America firms from selling technology and parts to the Chinese company.  While it has hurt Huawei’s business, it had also prevented American companies from participating in organization that set industry standards. 

“This action is meant to ensure Huawei’s placement on the Entity List in May 2019 does not prevent American companies from contributing to important standards-developing activities,” the statement on the website of Department of Commerce said. 

The US has long alleged that Huawei maintains a tight relationship with the Chinese government and that equipment from the company could be used to spy on other countries and companies. Huawei has repeatedly denied this.

In April, Huawei reported that revenue growth slowed sharply in the first quarter, amid pressure from the US and the impact of the coronavirus pandemic. 

Huawei could not immediately be reached for comment.