Huawei signs deal to develop 5G networks in Russian Federation

Chinese President Xi Jinping and Russian President Vladimir Putin applaud as Huawei executive Guo Ping shakes hands with Alexei Kornya President and CEO of Russian mobile phone operator MTS

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Xi and Russian President Vladimir Putin also attended a launch ceremony for a Chinese vehicle factory in Russia's Tula region. Huawei and MTS said they will begin developing next-generation 5G networks in Russian Federation over the next twelve months. The Trump administration has put Huawei on its "entity list", which prohibits United States companies from trading with the firm unless they have a license. The U.S. and other governments and foreign companies also are unhappy over Chinese policies and business practices that they say force transfers of technology. The signing ceremony coincided with the first worldwide video call, using Russia's 5G network, connecting St. Petersburg and the Finnish capital, Helsinki. At the same time, Washington has stepped up pressure on its European allies to deny the Chinese tech giant access to the construction of 5G networks, threatening to otherwise limit intelligence sharing efforts.

Huawei has become a central part of a power struggle between world top two economies that started out in trade and is now threatening to engulf the field of technology.

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Still, some countries including Australia and New Zealand have blocked Huawei from supplying equipment for 5G mobile networks.

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.

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Huawei Technologies has signed an agreement with Russian telecom company MTS to develop 5G networks in the country over the next year.

The Industry and Information Technology Ministry said state-owned telecom providers China Telecom, China Mobile, China Unicom and China Broadcasting Network Corporation received business licences to operate fifth-generation digital cellular mobile communication services.

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Huawei has denied it might be forced to spy on behalf of China's ruling Communist Party and demanded that the USA and other governments produce evidence to back up their allegations. This led U.S. Commerce Department to restore Huawei's ability to maintain its network, according to a 90-day temporary general license issued by federal officials.

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