US relaxes export regulations to counter China's quest to dominate tech standards

US fears being sidelined when industry formulates international networking standards

The US Commerce Department's Bureau of Industry and Security (BIS) has eased restrictions on the sharing of "low-level" technology and software with companies like Huawei that are currently on the US blacklist, in order to maintain the country's dominant position in international standards negotiations.

The US restricted Huawei's access to key US suppliers in 2019 by adding the Chinese firm and many of its non-American affiliates to an Entity blacklist.

However, the move also forced US companies to curtail their involvement in standards-related activities at a time when Chinese enterprises are playing a growing part in technical committees that control how technology is developed and used throughout the world.

Many American firms informed the Biden administration that they were confused as to whether they are required to obtain a licence before sharing "low-level" technology during standards discussions.

Several industry leaders and cyber security experts warned that the restrictions would jeopardise national security by discouraging participation in international standards organisations.

The US is also concerned that China is working to develop standards, via companies like Huawei, that would benefit authoritarian regimes. For instance, Huawei floated New IP in 2020, which enables central control of networks.

As part of its strategy to implement IPv6 throughout the country, the Chinese government has made it a top priority to contribute to networking standards.

The US wants to ensure that it can exert dominance in all standards bodies, and it justifies this position by arguing that it is necessary to ensure that the values of liberal democracies and open markets are embedded in technology.

Since adding Huawei to its blacklist, the US has made an effort to permit standards participation by providing a temporary broad licence and narrowly defining which firms and technologies do not need its approval in order to participate.

The revised rule goes further, and has received positive feedback from influential figures in the industry.

According to the BIS, the new regulations are intended to allay any remaining concerns about working with Entity List groups on "standards-related activities".

"US stakeholders need to be fully engaged in international standards organisations, particularly where the critical but sometimes invisible standards that they set have important national security as well as commercial implications," Alan Estevez, the commerce undersecretary for industry and security, said in the statement.

He added that the updated guidelines give US industry and other organisations much-needed clarification, allowing for continued US leadership in these critical bodies.

The BIS is soliciting feedback on an updated rule that defines "standards-related activity" as "activities required for the development, adoption or application of a standard, where there is an intent to publish the resulting standard."

This feedback period will last for the next 60 days.

"International standards serve as the building blocks for product development and help ensure the functionality, interoperability, and safety of products," said assistant secretary of commerce for export administration, Thea D. Rozman Kendler.

"Today's rule continues to prevent technology transfers that harm our national security while ensuring that US companies fully participate and lead in standards development. In addition to consulting with our interagency partners to craft this rule, I want to especially thank the National Institute of Standards and Technology (NIST) for sharing their expertise."