Huawei is Willing to License 5G Technology to an American Company

Huawei Technologies Co Ltd. is willing to license its 5G technology to an American company, said Huawei founder and CEO Ren Zhengfei in a talk with Fortune reporters on September 19, according to Huawei’s community Xinsheng.

Ren confirmed that his company is offering its entire 5G networking technology, which enables connectivity almost 100 times faster than the current 4G network, to one American company to create a competitor for Huawei. These technologies include source code, hardware design, production technology, testing methods, culminating in a complete solution plan.

“This is beneficial for Huawei. On the one hand we reduce tensions between the company and the global community, on the other hand we can have a competitor. If the competitor is not strong enough, Huawei will also be on the wane,” Ren said.

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As for why it has to be an American company, Ren explained that it’s because Europe has its own telecommunications giant and the American company is big enough to breed a new one.

The potential company to receive this license should be an industry giant similar to Huawei, according to Ren. It can modify the source program and source code based on Huawei’s tech plan to build its own system.

The vacancy of such a giant in the U.S. dates back to America’s choice in building communications standard. Their Code-Division Multiple Access (CDMA) used mostly in 2G and 3G communications failed to catch up with the development of 5G, while China’s Wideband Code Division Multiple Access (WCDMA) better supports high-speed data transmission.

“America is still on the wrong track in terms of many technological developments,” Ren said.

Ren also pointed out that the longer that Huawei is on the American entity blacklist, the worse it is for U.S., because American tech companies need the global market. If certain products are not allowed in certain markets, new products will emerge to replace old ones, which will cut down their market share.

If Huawei remains on the blacklist, the company will not be affected that much in the short term. Ren said that they don’t need American components and parts at all in 5G and core networks. Only the ecosystem of terminal products will suffer. “But we believe that effects will be eliminated after two or three years,” Ren said. The company is now building its own ecosystem.