The U.S. Commerce Department announced Friday that it will revise the export ban to allow U.S. companies to share information with Huawei on setting the fifth-generation Mobile Communications (5G) standard without a Commerce Department license. The news has been disclosed in the media before, so it is not surprising that the ban has been formally changed. The U.S. government’s loosening of ties to U.S. companies means that the U.S. acknowledges past strategic miscalculations on 5G, and now adjusts its strategy to rejoin the battle for global 5G dominance, which does not point to a deregulation of China.
Limiting Huawei to “marginalize” itself
The Commerce Department said U.S. companies disclosed technology in the Export Administration (EAR) to Huawei and its affiliates only in the context of legitimate standard-setting, not for commercial purposes.
In response, Huawei said: The essence of the standard is open, fair, non-discriminatory, the need for global manufacturers, scientific research institutions and trade associations and other organizations to participate. Inclusiveness and adequate consultation can better promote the development of technical standards and contribute to the healthy development of the global economy and industry. Huawei’s attitude is consistent, and we are willing to engage in frank discussions and exchanges with our technology counterparts, including U.S. manufacturers, on the standards of new technologies and contribute to the scientific and technological progress of human society.
Fu Liang, an independent telecommunications analyst, said this is the problem that the U.S. will inevitably face when Huawei joins The “Entity List” in 2019, and under the original rules, U.S. companies will need to obtain a license to export technology to Huawei, and U.S. companies will need to obtain a license to communicate technology with Huawei in international standards organizations. Huawei is still “On the Entity List” with the new “patch”, but U.S. companies don’t need to apply for a license if they work with Huawei on standards at international standards.
In May 2019, after Huawei was added to the “entity list”, some international standards organizations temporarily suspended Huawei’s membership, but it has since resumed. 3GPP is an international standard organization that sets 5G standards. At the 86th plenary meeting of 3GPP in December 2019, Peter Schmitt of Huawei was successfully elected Chairman of the CT4 Working Group, and Chen Xiang, an expert at Futurewei, Huawei subsidiary, was elected Chairman of 3GPP RAN4.
U.S. companies, which are not sure what technology or information they can share because of the ban, can only avoid contactwith Huawei at international meetings and forgo participation in some meetings, reducing standard-setting participation and putting the U.S. at a disadvantage in standard-setting.
Ma Jihua, a telecommunications industry expert, said the U.S. began trying to “kick out” Huawei from international organizations, but that it didn’t work, that Huawei’s activities at 3GPP had not been affected, and that other international standards organizations had “pulled back” Huawei. The 5G standard, which allows U.S. companies to work with Huawei, means that U.S. companies can attend Huawei’s technology conferences in the future, a sign of U.S. pragmatism, a fight for a voice and a sign of a diminished U.S. influence over international standards organizations.
In January 2020, IPlytics, a German patent statistics company, published a 5G standard patent statement survey report. According to the report, as of January 1, 2020, the number of 5G standard patent applications worldwide was 21,571, of which Huawei ranked first with 3,147.
Huawei followed with 2,795 patents, followed by ZTE with 2,561, LG Electronics 2,300, Nokia 2149 and Ericsson 1494, ranking second, third, fourth, fifth and sixth.
As you can see, none of the top six are American companies. Ma Jihua said that the United States has interfered with 5G standard-setting, another stall, but the United States will have to pay the time and cost is unimaginable, now the United States realizes that even if U.S. companies do not participate in 3GPP, the future 5G standard is the same, the United States will have to comply.
The U.S. move is nothing more than a re-entry into the battle for the right to speak. In June 2019, the 5G international standard R15 version was frozen. Peng Jian, deputy director of the Radio Management Research Institute of the Sadie Institute, said that 5G standards are still being refined and evolving, and that there will be Versions of R16, R17, R18, and standard-setting in the 5G and vertical industries, such as U.S. companies are not allowed to cooperate with Huawei on 5G standards, and the losses will be on U.S. companies.
America’s Strategic Miscalculation on 5G
5G is also a national strategy of the United States. The Information Technology and Innovation Foundation of the United States (ITIF) recently released the National Strategy for 5G and Future Wireless Innovation in the United States. The report argues that 5G will drive economic growth in the coming decades, and that the U.S. needs a comprehensive strategy to ensure robust deployment and application security of 5G networks, as well as wireless innovation in the coming years to leverage U.S. software and other advantages.
The report recommends that the United States step up efforts in government coordination, international cooperation, support for sustained wireless technology research and development, support 5G demand-side development, change 5G equipment security programs, and accelerate network deployment.
However, Ma Jihua believes that the United States has misjudged the whole 5G situation in many ways, so that it has come to a dilemma.
First, the United States misjudged the direction of 5G development. In the spectrum distribution, the United States 5G civil spectrum is used in high-frequency millimeter waves, military spectrum is used sub-6, that is, the low and medium frequency band spectrum. This is the opposite of all other countries of the world. The U.S. bet on millimeter waves will clearly gradually lag behind the market, from terminal to equipment industry-wide technology and industrial crisis.
The United States misjudged Europe’s 5G. Despite repeated u.S. government lobbying by European countries not to use Huawei 5G, European operators do not exclude Huawei devices. Deutsche Telekom recently expressed a strong desire to strengthen cooperation with Huawei to promote the construction of a 5G network in Germany, German media reported. Several other major German telecoms operators, such as Vodafone and Telecom Germany, are also using Huawei technology and equipment to build their own 5G networks.
In fact, in the 4G era, European operators and device makers and China have taken LTE routes, and Europe has not followed the Wimax technology route in the United States. Wimax pulled out of the market in 2010 because of its short coverage distance, few followers and no scale effect. In the 5G era, Europe has also worked with China to promote global standards.
The U.S. also misjudged Huawei. It has been more than a year since the implementation of the Entity List in May 2019. U.S. policy, from not allowing the purchase of Huawei equipment, not allowing U.S. companies to provide technology and products to Huawei, to not allowing titast-also foundry companies for Huawei’s foundry chips, has indeed created a lot of trouble for Huawei. But the U.S. did not expect Huawei not only to be kicked out of international organizations, but also to show great fighting and resilience.
Some analysts believe that the U.S. agreement with U.S. companies and Huawei on the 5G standard cooperation, in fact, the tacit admission of these misjudgments. Failure to correct these miscalculations in a timely manner will lead to the marginalization of U.S. companies in the industrial chain.
Re-fight for the right to speak
Industry insiders believe that, despite the U.S. amendment, it does nissane Huawei. Restrictions on the sale of communications equipment in the United States, entity list control, control of offshore chip foundry enterprises, etc. have not been lifted. The U.S. amendment is designed to ensure and expand the voice of U.S. companies in 5G, artificial intelligence, self-driving cars and other technologies, while avoiding fragmentation from the global information and communications industry.
This issue, countries also look at. “In the face of U.S. sanctions, the U.K. has told telecoms companies to stock Huawei equipment,” Reuters reported Thursday, citing an internal letter obtained by Reuters that British network security officials had told British telecoms operators to store Huawei equipment to ensure they had sufficient equipment inventory, citing concerns that the Us ban would undermine the Chinese company’s ability to maintain the supply of key equipment.
“The United States will not give up its leadership in global innovation. This initiative recognizes the importance of using American talent to promote and protect our economy and national security. Wilbur Ross, the US commerce secretary, said.
“This department is committed to protecting U.S. national security and foreign policy interests by encouraging the full participation of the U.S. industry in relevant activities and advocating that U.S. technology becomes an international standard,” he said.
Recentmedia reports said the U.S. government offered to fund Brazilian operators to buy 5G equipment from Ericsson and Nokia, and stepped up efforts to persuade allies not to use Chinese suppliers’ equipment. The aid will be provided by the U.S. International Development Finance Corporation (IDFC), which, according to Todd Chapman, the U.S. ambassador to Brazil, is in discussions with officials from Brazil and other countries.
As a leader in traditional communications, the United States has faced challenges from China in the 5G era.
3GPP is the leading 5G standards development and publishing organization, with more than 500 members. There are three regulatory groups in the organization, namely RAN, CT and SA, in which RAN is mainly responsible for wireless access network-related content, SA is mainly responsible for business and system concepts and other related content, CT is responsible for the core network and terminals and other related content.
3GPP members through the “proposal” to propose different solutions and technologies, followed by the proposal at the 3GPP meeting for public discussion, any member can object to a proposal, and finally, in 3GPP’s technical reports and technical specifications, the vast majority of the content is the result of 3GPP members made changes on the basis of the original proposal.
According to China News Agency is through train to understand that RAN has a total of 20 leadership seats, China accounted for 7, accounting for 35% of the entire seats.
In addition to the mention of Huawei experts as vice-chairmen of the RAN4 Working Group, Xu Xiaodong, an expert from China Mobile Research Institute, served as vice-chairman of the RAN Plenary, ZTE’s Treble was elected vice-chairman of the RAN3 Working Group in August 2017, and in August 2019, ZTE expert Sergio Parolari was elected vice-chairman of the new RAN2 Working Group.
In addition, Song Yue from China Mobile served as vice chairman of the CT4 working group, Qi Weipeng served as vice chairman of the SA3 working group, Huang Zhenning served as vice-chairman of the CT3 working group, and Sun Tao served as vice-chairman of the SA2 working group.
But the voice comes not from seats, but from the work done at 3GPP. For example, the more proposals, the more qualified to participate in the discussion, the natural voice of the voice. In the field of simulation alone, the Chinese company’s proposal scored 32%. Since 2015, Huawei has submitted more than 26,600 5G proposals to 3GPP and 6,216 have been approved.
In addition, there are projects, national companies proposed after discussion, consensus will be formally established. The project determination has a large degree of impact on the direction. In the R17 version, more than 40% of the projects formally identified were proposed by Chinese companies, and projects proposed by China Mobile, China Telecom, China Unicom, ZTE, Huawei, Datang Telecom, Vivo and OPPO were all approved.
Some in the communications industry believe that in the 4G era, Huawei does not have that voice. In the 5G era, the performance of the entire Chinese industrial chain, including Huawei, in international standard-setting has shown a significant increase in the voice of China’s communications industry. In the future, with the continued upgrading of the communications industry, DICT fully integrated, the entire technology industry or will present the situation of China, the United States, Europe and the three poles.