Huawei in Talks with American Companies to License its 5G Equipment

Huawei in Talks with American Companies to License its 5G Equipment

Business

You might beware of the news that the US has banned Huawei from selling its 5G technology in the US. But it seems like the exclusion is not stopping the Chinese tech giant from attempting an end-run around that hurdle. Huawei’s Senior VP Vincent Pang has said that the company is in primary talks to license its next-generation technology to American companies. Notably, the discussions are a few weeks old, but some anonymous companies have revealed interest in both long-term agreements as well as one-time transfers. The concern is that U.S. tech companies do not provide the necessary technology to assist American wireless operators for the development of independent 5G networks. Amid ongoing talks, Pang does not have an idea of whether Huawei would launch a deal. But the executive has noted that it will cost more for developing and maintaining a one-time transfer.

On the other hand, Huawei’s rivals, like Ericsson, Nokia, are available but at a higher cost. Apart from this, US officials have attempted to gain support from domestic tech companies like Cisco and Oracle to produce 5G equipment. But both tech giants have denied saying that it would need much money and time for them to set foot in this business. Whereas, having a ban over its products, Huawei cannot no access to the American supply chain in which it has invested $11 billion in 2018.

All in all, Huawei remains in the entity list of the UD Commerce Department. It is preventing the Chinese tech giant from doing business with American companies without explicit permission. Even more, a license or a transfer deal could easily be considered a similar violation, also if no transfer of physical goods takes place. Politicians doubt Huawei, along with the possibility that it might slip Chinese government surveillance software into equipment, and it might not matter whose equipment that is. Let’s see whether the US government allows the suspected Chinese agent to have licensing deals with American companies.