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 setting standards for next generation 5G networks, people familiar with the matter said.
Engineers in some U.S. technology companies stopped engaging with Huawei to develop standards after the Commerce Department blacklisted the company last year. The listing left companies uncertain about what technology and information their employees could share with Huawei. That has put the United States at a disadvantage, said industry and government officials.
In standards setting meetings, where protocols and technical specifications are developed that allow equipment from different companies to function together smoothly, Huawei gained a stronger voice as U.S. engineers sat back in silence.
After nearly a year of uncertainty, the department has drafted a new rule to address the issue, two sources told Reuters. The rule, which could still change, essentially allows U.S. companies to participate in standards bodies where Huawei is also a member, the sources said.
The U.S. government wants U.S. companies to remain competitive with Huawei, said Naomi Wilson, senior director of policy for Asia at the Information Technology Industry Council (ITI). “But their policies have inadvertently caused U.S. companies to lose their seat at the table to Huawei and others on the entity list.”