Huawei CEO Ren Zhengfei on an exclusive 5G license to a US company



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Ren Zhengfei, Huawei's CEO, in conversation with CNBC at Huawei's headquarters in Shenzhen, China.

Justin Solomon | CNBC

Chinese IT giant Huawei is ready to grant an exclusive license for 5G technology to a US company to create a level playing field for its competitors, said CEO Ren Zhengfei on Thursday.

5G is the next generation of high-speed mobile technology that aims to provide faster data speeds and increased bandwidth to support increasing levels of web traffic. For its part, Huawei is considered one of the leaders in the development of 5G infrastructure.

It's an exclusive license that would help the US company achieve economies of scale to support its business, said CNBC's Ren to Tan at a roundtable at Huawei's headquarters. in Shenzhen, China.

He explained that it should be an American company because companies in Europe, Japan and South Korea already have the technologies needed to develop 5G.

"But the United States does not currently have that kind of thing," said Ren, according to a translation verified by CNBC. "I think we should give (an) exclusive license to an American company, and after getting a license, they can use our technology to compete with markets around the world."

The license would include Huawei's proprietary 5G technology, including source code, hardware, software, verification, production and manufacturing know-how, according to the company's head. "All of these are included in the package, and if they need it, we can also license chipsets."

Huawei has a broad portfolio of patents essential to 5G technology. If it licenses its 5G technology, it could generate new sources of revenue for the company.

Ren explained that he thought the development race of the 5G should start on an equal footing. "We want to give everyone the same starting point," he said, adding that he was confident that his company could then take the lead as the company progressed. the situation.

Earlier this month, Huawei introduced a new 5G processor for its mobile devices as part of its efforts to expand its chip technology business.

Huawei's technology has been monitored internationally and some countries, including the United States, Japan and Australia, have banned the company from participating in the development of 5G within their borders .

Washington claimed that Huawei's 5G technology could allow Chinese spies and urged its allies to ban society. Huawei has repeatedly denied that its products pose no risk.

In May, the United States added Huawei and its affiliates to a black list, called a list of entities, thus ending its ability to deal with US companies. Washington then eased its position by granting a temporary reprieve to the Chinese technology company. President Donald Trump has already said that Huawei could potentially be part of the ongoing trade negotiations with Beijing.

Despite US pressure, Huawei said it has signed more than 50 5G commercial contracts around the world, while continuing to sign agreements with carriers around the world. This figure allows it to outpace its closest competitors, Ericsson and Nokia, according to the latest contract numbers released by Huawei.

In August, Ren told his employees that the company was facing a "life or death crisis" and presented a strategy to China's telecommunications giant.

On Thursday, Ren predicted that artificial intelligence would be the biggest industry of the future. He said he hoped the United States would not put Huawei on the blacklist.

– Grace Shao from CNBC contributed to this report.

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