China to soon bring list of 'unreliable' foreign firms

China to soon bring list of 'unreliable' foreign firms

Russian president Vladimir Putin is now hosting his Chinese counterpart Xi Jinping, celebrating 70 years of trade relations between the two countries.

According to the official statement, the two companies will develop and launch a pilot of 5G networks in 2019-2020.

The Chinese telecom giant has been in turmoil since May, when the Trump administration banned USA organizations from selling high-tech equipment to Huawei over suspicions it is spying for Beijing.

Ministry of Industry and Information Technology (MIIT) on Thursday issued 5G commercial licenses to China Telecom, China Mobile, China Unicom and China Radio and Television. Russia and China have inked several major deals, including the formation of a new investment fund and the creation of an e-commerce joint venture between the Russian Direct Investment Fund (RDIF), China's Alibaba, and Russia's Mail.Ru Group.

Commenting on the announcement, Huawei ─ which produces both network equipment and mobile phones ─ said it will "fully support" Chinese operators to build 5G infrastructure.

Huawei, once a little-known supplier of telecoms network gear and now the industry leader, has become a national champion as Beijing fights back against US claims that the company poses a security risk and should be excluded from development of super-fast next-generation 5G networks.

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.

The technology is expected to bring new opportunities and buoy the growth of China's digital economy, Miao said, adding that it will accelerate the digital transformation of many industries, and will be more intensively used in sectors such as Industrial Internet and Internet of Vehicle. In February past year, it made the world's first 5G call and launched the first 5G terminal device.

The move marks an accelerated push by China to apply 5G. Huawei relies on licences for ARM's chip architecture designs of us origin in smartphone production.

Even as Huawei grew to become one of China's largest businesses, companies around the world have been cutting ties with Shenzhen-based Huawei in order to come into compliance with the USA ban. The US government's actions also make it significantly harder for Huawei to source components for its devices.

Ties between China and the United States 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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