In an effort to protect America’s dominance in the global tech sector, the US administration is removing some restrictions on the Chinese corporation Huawei. According to reports, this relaxation of constraints will allow American businesses to take a more active role in meetings of global digital standards.
A NEW RULE ISSUED BY THE US RELEASING HUAWEI FROM TECHNICAL CONTROLS Back in 2019, while Donald Trump was in charge, Huawei was added to the Entity List maintained by the US Commerce Department. Trump said that the business poses a threat to national security because of its ties to the Chinese Communist Party and military. The penalties denied the Chinese IT giants access to their US partners and supply chain, including Google and Qualcomm. This essentially made Huawei a China-only business. It continued to operate in places like Europe, but because to US constraints, it was unable to use the newest American technologies. This made it unable to compete with the top companies in the field.
American businesses were prohibited from doing business with Huawei as a result of the sanctions unless they were able to secure a special license. But this made it unclear what was allowed and what wasn’t. As a result, American tech companies restricted their participation in activities connected to international tech standards, such 5G, where Huawei was active. While this was happening, other domestic companies also boosted their participation.
Advertisement Here, there could be a risk, according to the US authorities. Chinese companies’ increased influence over technical committees that decide how technology is developed and used internationally could provide China a competitive edge in this tech conflict. The Bureau of Industry and Security (BIS) of the Commerce Department recently published a new rule to reduce those risks. When American corporations participate in processes that determine tech standards and development, it enables cooperation of low-level technology and software with sanctioned Chinese enterprises like Huawei.
Alan Estevez, the Commerce Under Secretary for BIS, stated that US stakeholders need to be actively involved in international standards organizations, particularly when the vital but sometimes unseen standards that they set have important national security as well as commercial ramifications (via Bloomberg ).
Always denying any wrongdoing, Huawei Naturally, Huawei has consistently refuted the claims made by the Trump administration. A change in Washington’s administration, however, did not improve its situation. The Biden administration hasn’t showed any signals of forbearance toward Huawei more than a year into its term. As China closes the gap, the most recent relaxations seem to be motivated by personal gain. Time will tell if Huawei is able to resurrect and become a major player in the tech sector on a global scale.