U.S. Commerce Secretary Wilbur Ross said on Thursday that an order blacklisting Chinese telecoms giant Huawei Technologies Co Ltd will go into effect on Friday. Wilbur Ross U.S. Department of Commerce Secretary The Department of Commerce has changed that rule, helping to clarify that U.S. firms can work with Huawei in standards setting bodies. © Data is a real-time snapshot *Data is delayed at least 15 minutes. These are technical specifications and other things that spell out how a technology works and allows different devices or systems around the world to work together.

But the blacklisting also created confusion as to whether U.S. firms could be involved in standards setting discussions and organizations where Huawei was also a participant.The Department of Commerce has changed that rule, helping to clarify that U.S. firms can work with Huawei in standards setting bodies. This action recognizes the importance of harnessing American ingenuity to advance and protect our economic and national security," U.S. Department of Commerce Secretary Wilbur Ross said in a statement. Secretary of Commerce Wilbur Ross said Huawei's persistence in testing the rules put in place to protect U.S. national security was concerning. Without the U.S. companies involved in standards setting, the concern is American technology firms could lose their competitiveness. ITI's Wilson said the previous rule left U.S. firms at a "strategic disadvantage" but welcomed the change from the government. "U.S. participation and leadership in standard-setting influences the future of 5G, autonomous vehicles, artificial intelligence, and other cutting-edge technologies," it said. Huawei was put on a U.S. blacklist called the Entity List in May 2019.

Reporting by Makini Brice and David Lawder U.S. firms were restricted from doing business with the Chinese technology giant and required licenses to sell to it. Being forced to cede their seat at the table to the likes of Huawei no less, was in nobody's interest, except the Chinese," Naomi Wilson, senior director of policy for Asia at ITI, told CNBC.

But now, new technologies are emerging — such as next-generation mobile internet known as 5G or autonomous vehicles. "The Information Technology Industry Council (ITI), a global tech trade body, welcomed the move.

It is not necessarily a winner takes all race, but you certainly have to stay in the race in order for competition to drive innovation in those next generation technologies." The Department of Commerce itself recognized the importance of U.S. companies in setting standards for the future. "The last thing we want to see is unintended consequence that negatively affects U.S. companies' competitiveness. "It is exceptionally important for U.S. companies to be at the table. US Commerce Secretary Wilbur Ross confirmed the action in a statement to Reuters. Got a confidential news tip? We want to hear from you.Sign up for free newsletters and get more CNBC delivered to your inboxGet this delivered to your inbox, and more info about our products and services. The United States is worried that if its allies use Huawei's 5G telecommunication equipment, they could expose themselves to security risks, U.S. Commerce Secretary Wilbur Ross said Thursday. U.S. firms can work with Huawei on setting standards for next-generation technologies, the Department of Commerce said Monday.The move is significant because it means American firms will be able to participate in the formation of so-called standards, which are specifications and rules that govern how critical technologies work. Huawei, China’s largest technology company by sales, has been at the heart of worsening tensions between Washington and Beijing. Who gets to define those standards has yet to be determined.China has stated its ambitions clearly: Not only does it want to develop its own domestic standards, it also wants to push its participation internationally.Huawei, which participates in telecommunications standards setting bodies, is part of that push.CNBC recently reported on a plan called Huawei will be a big part of that plan given its strength in areas from telecommunications to mobile phones and cloud computing. "The United States will not cede leadership in global innovation. Wilbur Louis Ross Jr. (born November 28, 1937) is an American investor and businessman serving as the 39th United States Secretary of Commerce since 2017. 1 Min ReadWASHINGTON (Reuters) - U.S. Commerce Secretary Wilbur Ross said on Thursday that an order blacklisting Chinese telecoms giant Huawei Technologies Co Ltd will go into effect on Friday.

U.S. and European technology firms have been key players in defining technology standards for the last generation of technology. The executive order, which was announced on Wednesday, barred Huawei from acquiring components and technology from U.S. firms without government approval.

“The order dealing with Huawei itself will be effective tomorrow,” Ross said in an interview with Bloomberg Television and Radio.

"The Department is committed to protecting U.S. national security and foreign policy interests by encouraging U.S. industry to fully engage and advocate for U.S. technologies to become international standards. "Standards are critical to technologies.The reason we can go around the world and use Wi-Fi quite easily in most places is because industry bodies have worked out standards for the technology.

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