Huawei: US companies allowed to work with Chinese giant

Huawei: US companies allowed to work with Chinese giant Cybersecurity

The United States has announced a change to the ban on US companies from working with Huawei. American companies will therefore be allowed to share information on technologies with Huawei, in order to develop common standards without the need for an export license.

Boycott continues

U.S. Commerce Secretary Wilbur Ross said the policy change does not ease the government’s stance on Huawei, which is still on Washington’s blacklist, however. The purpose of the amendment is actually to ensure that American companies can still contribute to the development of standards for 5G, artificial intelligence, autonomous technologies, and other technologies in which Huawei is heavily involved.

“The United States will not give up leadership in global innovation. This action recognizes the importance of harnessing American ingenuity to advance and protect our economic and national security, “said Wilbur Ross. “The department is committed to protecting the interests of the United States in national security and foreign policy by encouraging American industry to fully engage and advocate for American technologies to become international standards. ”

The announcement follows Washington’s recent decision last month to curb Huawei’s semiconductor supply, as companies need an export license to sell to the Chinese giant.

North of the border, Canadian telecommunications companies have also blocked Huawei’s access to their 5G network by signing deals with the Chinese giant’s rivals. The Chinese network equipment supplier is also banned in Australia and has failed to make a foray into New Zealand after GCSB prevented Spark from using the Huawei kit in November 2018.

Nokia partners with China Unicom

Meanwhile, Huawei’s competitor Nokia has been chosen by China Unicom to help it build its autonomous 5G network in China. The company announced on Monday that it had obtained about 10% of the construction of China Unicom’s 5G core network. Finnish network equipment supplier will help establish connections, manage bandwidth, scale and network security, and open 5G network to support new use cases such as trimming of the network.

The two companies previously signed an agreement for Nokia to provide its cloud-based vIMS platform for China Unicom’s VoLTE network. Nokia currently owns a 17% share of China Unicom’s VoLTE network.

Nokia also announced Monday that it has partnered with Broadcom to develop chips for 5G equipment. This is the third such agreement for Nokia after those with Intel and Marvell. The two companies will develop new custom system-on-a-chip processors that will be integrated into Nokia’s “5G Powered by ReefShark” product line, and deployed in several of Nokia’s network solutions.

Ericsson also wins 5G contracts in China

Like Nokia, Ericsson announced last week that it has won 5G contracts in China after signing agreements with the country’s three main telecommunications operators: China Unicom, China Telecom and China Mobile. Ericsson did not provide details of these agreements.

When the contracts were announced, the company added that it would experience a decrease of around one billion Swedish kronor in the second quarter, due to the depreciation of stocks of pre-commercial products for the Chinese market.

“Margins in the second quarter of 2020 are expected to be negative due to the high initial costs for new products,” said Ericsson.



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