The U.S. allows U.S. companies to cooperate with Huawei 5g just to compete for the right to speak

category:Finance
 The U.S. allows U.S. companies to cooperate with Huawei 5g just to compete for the right to speak


The U.S. governments deregulation of U.S. enterprises means that the U.S. recognizes the strategic misjudgment in 5g in the past, and now adjusts its strategy to rejoin the fight for global 5g dominance, which does not mean that the regulation of Huawei is relaxed.

01

Restrict Huawei but marginalize

According to the U.S. Department of Commerce, U.S. companies disclose technology in export administration regulations (ear) to Huawei and its affiliates only in the context of legal standard setting, rather than for commercial purposes.

In response, Huawei said: the essence of the standard is open, fair and non discriminatory, which requires the participation of global manufacturers, scientific research institutions and industry associations. Inclusive and full consultation can better promote the formulation of technical standards and contribute to the healthy development of the global economy and industry. Huaweis attitude is consistent. We are willing to have frank discussions and exchanges with our technology peers, including American manufacturers, on the standards of new technologies, so as to contribute to the scientific and technological progress of human society.

Fu Liang, an independent Telecom analyst, said that this is a problem that the United States will inevitably face when Huawei is added to the entitylist in 2019. According to the original regulations, U.S. enterprises need to obtain a license to export technology to China, and U.S. enterprises need to obtain a license to exchange technology with Huawei in international standards organizations. With the patch of the new regulations, Huawei is still in the entitylist. However, in international standards organizations, U.S. enterprises do not need to apply for a license to discuss standards with Huawei.

In May 2019, after Huawei was listed in the entity list, some international standards organizations temporarily suspended Huaweis membership, but later recovered. 3GPP is an international standard organization for 5g standards. At the 86th plenary session of 3GPP held in December 2019, Peter Schmitt of Huawei Company was successfully elected chairman of cT4 working group, and Chen Xiang, an expert from Futurewei, a subsidiary of Huawei Company, was elected chairman of 3gppran4.

Ma Jihua, a telecommunications expert, believes that the United States began to try to kick Huawei out of international organizations, but it did not work. Huaweis activities in 3GPP were not affected in any way, and other international standards organizations also pulled back Huawei. Allowing us enterprises to cooperate with Huawei in 5g standard means that US enterprises can participate in Huaweis technology conference in the future. This is the performance of us pragmatism, which is to fight for the right to speak. It also shows that the influence of us on international standards organization has weakened.

In January 2020, iplytics, a German Patent Statistics company, released a survey report on 5g standard patent declaration. According to the report, as of January 1, 2020, the number of 5g standard patent applications in the world is 21571, of which Huawei ranks first with 3147.

As you can see, none of the top six are American enterprises. Ma Jihua said that the United States once interfered with the formulation of 5g standards and set up a separate stand, but the time and cost that the United States would pay are unimaginable. Now the United States realizes that even if American enterprises do not participate in 3GPP, 5g standards will be the same in the future, and the United States must comply with them.

02

US strategic misjudgment on 5g

5g is also the 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. According to the report, 5g will promote economic growth in the coming decades. The United States needs a comprehensive strategy to ensure the stable deployment and application security of 5g networks. It also needs to promote wireless innovation in the next few years and give full play to the advantages of the United States in software and other aspects.

The report recommends that the United States increase efforts in government coordination, international cooperation, support for sustained wireless technology research and development, support for 5G demand side development, change the security scheme of 5G equipment, and speed up network deployment.

However, according to Ma Jihua, the United States misjudged the whole 5g situation in many aspects, which led to a dilemma.

The US misjudged 5g in Europe. Although the U.S. government has been lobbying European countries not to use Huawei 5g, European operators do not exclude Huawei equipment. According to German media, Deutsche Telekom recently expressed its strong willingness to strengthen cooperation with Huawei to promote the construction of 5g network in Germany. Several other major German telecom operators, such as Vodafone and Deutsche Telekom, are also using Huawei Technology and equipment to build their 5g networks.

In fact, in the 4G era, European operators and equipment manufacturers have taken LTE routes with China, and Europe has not followed the WiMAX Technology Route of the United States. WiMAX quit the market in 2010 due to its short coverage, few followers and no scale effect. In the 5g era, Europe and China have also worked together to promote global standards.

The US also misjudged Huawei. It has been more than a year since the implementation of the entity list in May 2019. The U.S. policy has increased layer by layer, from forbidding the purchase of Huawei equipment, forbidding American enterprises to provide technology and products to Huawei, to forbidding OEM enterprises such as TSMC to manufacture chips for Huawei, which has really caused Huawei a lot of trouble. But the U.S. didnt expect Huawei not only to be kicked out of international organizations, but also to show strong combat power and toughness.

03

Fight for the right to speak again

Industry insiders believe that although the United States has made a correction, it does not mean that Huawei will be deregulated. The restrictions on the sale of communication equipment in the United States, the control of entity list, and the control of overseas chip manufacturing enterprises have not been lifted. The US amendment is aimed at ensuring and expanding the voice of American enterprises in 5G, AI, autopilot and other technologies, and avoiding the separation from the global information and communication industry.

This issue is also in the eyes of all countries. In the face of U.S. sanctions, the UK told telecom companies to reserve Huawei equipment, Reuters reported Tuesday, according to an internal letter obtained by the UK, for fear that the U.S. ban will undermine the Chinese companys ability to maintain the supply of key equipment, officials from the UKs network security department have told the UK telecom operators to store Huawei equipment to ensure that they have sufficient equipment inventory.

The United States will not give up its leadership in global innovation. This action recognizes the importance of using the talents of Americans to promote and protect our economy and national security. Wilbur Ross, the US Commerce Secretary, said.

Our department is committed to protecting the national security and foreign policy interests of the United States by encouraging the full participation of American industry in relevant activities and advocating that American technology become an international standard, he said.

Recently, foreign media reported that the U.S. government proposed funding for Brazilian operators to purchase 5g devices from Ericsson and Nokia, and increased efforts to persuade allies not to use Chinese suppliers devices. Aid will be provided by the US International Development Finance Corporation (IDFC), which is in discussions with officials in Brazil and other countries, according to Todd Chapman, US ambassador to Brazil.

As the leader of traditional communication industry, the United States has faced the challenge from China in the 5g era.

3GPP is the leading standard organization for 5g international standard development and release, with more than 500 members. There are three specification groups in the organization, namely ran, CT and SA. Ran is mainly responsible for the content related to wireless access network, SA is mainly responsible for the content related to business and system concept, and CT is responsible for the content related to core network and terminal.

3GPP members put forward different solutions and technologies through proposal, and then the proposal will be discussed publicly in 3GPP meeting. Any member can object to a proposal. Finally, in 3GPP technical report and technical specifications, most of the contents are the results of changes made by 3GPP members on the basis of the original proposal.

In addition to Huawei experts mentioned earlier as vice chairman of RAN4 working group, Xu Xiaodong, an expert from China Mobile Research Institute, served as vice chairman of Ran plenary session. ZTEs tweeter was elected vice chairman of ran3 working group in August 2017, and ZTE expert Sergio parolari was elected vice chairman of the new ran2 working group in August 2019.

In addition, song Yue from China Mobile served as vice chairman of cT4 working group, Qi minpeng as vice chairman of SA3 working group, Huang Zhenning as vice chairman of CT3 working group, Sun Tao as vice chairman of SA2 working group, etc.

But the right to speak does not come from the seats, but from the work done in 3GPP. For example, the more proposals are, the more qualified they are to participate in the discussion, and the right to speak will naturally increase. In the field of simulation alone, the proposal of Chinese companies reached 32%. Since 2015, Huawei has submitted more than 26600 5g proposals to 3GPP, and 6216 of them have been approved.

Some people in the communications industry believe that Huawei has not had that say in the 4G era. In the 5g era, the performance of the entire Chinese industrial chain, including Huawei, in international standard setting has shown that the discourse power of Chinas communication industry has been greatly enhanced. In the future, with the continuous upgrading of the communication industry and the full integration of dict, the whole science and technology industry may present a situation in which China, the United States and Europe stand at the same time.