The United States on Monday announced to amends its prohibitions on U.S. companies doing business with China's Huawei to allow them to work together on setting standards for next-generation 5G networks, according to the state's Commerce Department.

U.S. Secretary of Commerce Wilbur Ross said the new rule is to ensure "U.S. industry's ability to more fully contribute to standards-development activities in the telecommunications sector," despite Huawei's "pervasive participation" in standards-development organizations.

"The United States will not cede leadership in global innovation," Ross said. "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."

In response, Huawei said in a statement late on Tuesday that it would like to "continue holding sincere discussions in relation to standards for new technologies with our counterparts, including those in the U.S., and contribute to the technological advancement of society at large."

The rule noted that U.S. participation in standards-setting "influences the future of 5G, autonomous vehicles, artificial intelligence and other cutting-edge technologies."