U.S. doesn’t encourage, Huawei doesn’t win, U.S. companies are the beneficiaries of the 5G standard

From last night to this morning, a news about Huawei made headlines. In a number of news headlines, “sudden heavyweight”, “Huawei won”, “America bowed” and other colorful words are not uncommon, it is this atmosphere, so that most people think that China and the United States this 5G competition has finally come to an end, and “Huawei” victory to a successful conclusion.

Author Zhang Xue

U.S. doesn't encourage, Huawei doesn't win, U.S. companies are the beneficiaries of the 5G standard


But is that really the case?

The U.S. Commerce Department is about to sign a new rule that will allow U.S. companies to work with Huawei to develop next-generation 5G network standards, Reuters reported.

The new rules come against the backdrop of an unfair treatment of Huawei in the U.S. last year, and its U.S. partners stopped sharing and developing technology without a firm deal with Huawei to develop 5G network standards, lest it violate U.S. regulations.

Among these partners are Us tech giants such as Qualcomm, Broadcom, Intel and Oracle. In addition, Huawei buys products from many smaller suppliers throughout the United States.

Blacklisting Huawei puts the U.S. at a disadvantage, according to U.S. industry and government officials, because it gives huawei a greater say in 5G network standard-setting meetings and at a disadvantage for U.S. engineers.

In fact, as early as last year, when the list of entities was announced, telecomanalyst Fu Liang pointed out that the U.S. corporate relationship with Huawei in international organizations has become delicate as a result of the U.S. ban, which could affect the process of 5G follow-up standards because both sides are important contributors to the 5G standard.

Last month, six U.S. lawmakers sent a letter to the U.S. Commerce Secretary, Secretary of State, Secretary of Defense and Energy, saying there was an urgent need to issue new rules to prevent U.S. companies from being subject to export control regulations on 5G standards.

To change the situation, the U.S. Department of Commerce agreed to allow U.S. companies to participate in the activities of Huawei’s standards agency, although the rule could change the situation in the future.

However, the U.S. Department of Commerce is also conducting a final review of the draft, which, if approved, will be submitted to other agencies for approval. It is not clear how long the process will take, or whether other agencies will object. In addition, the rule is expected to apply only to Huawei and not to other Chinese companies that have been unfairly treated.

Analysts say the new U.S. action should focus on allowing U.S. companies and Huawei to join hands in 5G discussions, allowing U.S. companies to benefit more from 5G construction.

So, in the end, the U.S. Commerce Department is allowing U.S. companies to play, after all, the U.S. can only restrict or allow U.S. companies, and Huawei can only count as an adjective in the new rules.

Speaking of which, one might ask, why can’t Huawei refuse to work with U.S. companies?

In fact, Huawei’s 5G standard-setting organization is an international organization, not only including U.S. companies, in which companies from all over the world work together to develop 5G protocols and technical specifications, so that the devices of different companies can be connected.

Huawei refuses to cooperate with U.S. companies, can only opt out of standard-setting organizations, give up their 5G advantages, in contrast, it is clear that mutual benefit and win-win with enterprises of other countries is the best solution.

It should also be noted that the 5G network standard is not the same as 5G network construction. 5G network construction refers to the direct purchase of Huawei equipment and solutions by U.S. operators.

Is the so-called “first-class enterprise standards, second-rate enterprises to do brand, third-rate enterprises sell technology”, this statement is particularly applicable in the field of communications, Qualcomm in the previously charged huge patent fees to confirm this conclusion.

The Reuters report also said that the development of industry standards for telecommunications companies are a scent. These companies are competing to make their proprietary technology considered key to the standard, and the network standards, if passed, could generate billions of dollars in profits for the company.

U.S. shares of Huawei’s concept sector rose on Wednesday, with Micron Up 1.48 percent, Qualcomm up 1.6 percent, Intel up 1.3 percent and Celings up 2.08 percent.

Taken together, the previous U.S. ban brought a sense of “lifting a stone to your feet”, and the signing of the new rule is a “dead sheep to make up” helpless action, after all, completely cut off the link with Huawei, that is, cut off their own 5G track competition and learning opportunities, now allowing U.S. companies to participate in 5G standard-setting is also a timely stop loss.

Whether Huawei will be released or remain on the list of entities is not enough to make a clear judgment on whether to follow.