U.S. firms can work with Huawei on setting standards for next-generation technologies, the Department of Commerce said Monday, June 15, 2020.

Telefonica Deutschland, one of Germany's top mobile carriers, has picked Huawei and Nokia to build out its 5G network.

5G refers to next-generation mobile networks that promise super-fast data speeds and low latency — a short amount of time between the data being summoned and it reaching its destination.

The move is a potential snub to the U.S. government which has been campaigning for its allies to keep the Chinese telecoms equipment giant out of their 5G networks. Washington maintains that Huawei represents a security risk because its equipment could be used for espionage by Beijing. Huawei has repeatedly denied this allegation.

Countries have approached Huawei with mixed views. Japan and Australia have effectively banned the company from their 5G networks. Meanwhile, the U.K. has yet to make a final decision.

The German government decided in October it would not exclude Huawei from its 5G networks. Instead, it introduced a draft proposal for security guidelines when it comes to 5G equipment. It could mean that equipment from vendors need to be certified.