Huawei enters 5G deal with Russian firm

Larry Hoffman
June 9, 2019

Xi Jinping and Vladimir Putin signed a deal on Wednesday in Moscow that Huawei and local telecommunications company MTS will develop the fifth generation of mobile networks with broadband access for Russian Federation together.

MTS said the deal would cover the development of 5G technologies and the launch of 5G pilot networks in Russian Federation this year and in 2020.

USA sanctions against Huawei and other Chinese companies on the entity list meant a crippling blow to mobile business of Huawei, which had been dashing up until Q1 2019.

Asked whether China's move is linked to its trade war with the USA and aimed at helping Chinese companies like Huawei and ZTE, Chinese Foreign Ministry spokesman Geng Shuang told a media briefing that foreign companies are also welcome to participate in the 5G development.

President Donald Trump says he'll make a decision about ramping up tariffs on China after he speaks with Chinese President Xi Jinping at a summit this month in Japan.

The companies will develop next-generation 5G networks in Russian Federation over the next year, reports said.

Chinese President Xi Jinping is one of the main guests at the business forum, which runs until June 8.

China's Commerce Ministry said it will be releasing its list of "unreliable entities" very soon.

For those companies that follow market rules, they have nothing to worry about, Gao said, adding the list would not target any specific field or company.

"The argument that the USA suffered losses doesn't hold ground", it reads in part.

Trump ordered tariffs of up to 25% on hundreds of billions of dollars' worth of Chinese exports and his administration is preparing to extend them to $300 billion more - nearly all items shipped to the US from China. Its previous plan was to commercialize the technology in 2020.

File phot - Chinese Ministry of Commerce spokesman Gao Feng speaks during a press conference in Beijing.

Several firms have already distanced themselves from Huawei, including Google, whose Android operating system runs the vast majority of smartphones in the world.

Ties between China and the USA have deteriorated sharply after trade negotiations stalled last month without a deal to lift bruising tariffs on goods worth $360 billion in two-way trade.

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