Huawei signs deal to develop 5G in Russian Federation

Russia China Huawei

Huawei Chairman Guo Ping and MTS boss Alexei Kornya signed the agreement in the Kremlin on Wednesday, with Russian President Vladimir Putin and Chinese leader Xi Jinping watching.

The deal will see "the development of 5G technologies and the pilot launch of fifth-generation networks in 2019-2020", MTS, which serves 78 million mobile users in Russian Federation, said in a statement. In the United Kingdom, the company's participation of network development is still in question.

Apart from its smartphone business, which is what the company is widely known for, Huawei also offers artificial intelligence, cloud, blockchain, and internet of things offerings, among many other technologies.

Chinese giant Huawei's deal with Russian telecom firm MTS to deploy 5G technology in Russia is a boost to the world's biggest telecom equipment maker amid the raging US-China trade wars.

MIIT Minister Miao Wei said China welcomes foreign companies to actively participate in the construction of the country's 5G market and share the benefits generated. However, the ban could still challenge Huawei as it needs to secure contracts with semiconductor suppliers to support its construction of infrastructures for its 5G network.

"(We) believe that in the near future, China's 5G will lead the world", Huawei said on Weibo.

Since a year ago, 5G trials have been conducted in Chinese cities ahead of plans to deploy the technology across the country in 2020, and now the government has given the green light.

China Mobile later said it would offer 5G services in 40 Chinese cities this year.

The move curbed access to crucial US-made components and software - though a 90-day reprieve was later issued. Washington claims the company works with the Chinese government and installs backdoors on its equipment so Beijing can use them for espionage and cyberattacks, although both the Chinese government and the firm have denied these allegations.

Ties between China and the U.S. 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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