Huawei has signed a deal with Russia to help them develop their 5G network. The Chinese company has recently been hit hard by trade sanctions that have banned U.S companies working with them.
A deal was signed between Huawei and telecoms company MTS to develop the 5G network on Wednesday, on the sidelines of a meeting between Chinese leader Xi Jinping and Russian President Vladimir Putin in Moscow.
MTS released a statement that describes how happy they are to be working with Huawei on the important step for securing Russia’s technological future. The deal was signed during a meeting between the leaders of the two powerful nations.
In a press conference to mark the occasion, Xi, the Chinese leader called Vladimir Putin his “close friend”. This is the eight trip to Moscow by the Chinese leader, since 2012.
Entity List: trouble on both sides
The Trump administration banned U.S companies from selling equipment and technology to Huawei under suspicions that the company could be spying on behalf of Chinese authorities.
Huawei relies heavily on U.S.-made chips for its phones and other hardware. It also uses the Google administered Android operating system, but is reportedly working on its own OS as a replacement.
The “entity list” that Huawei is now part of is also a major concern for American manufacturers who set to lose a major customer base.
Some experts believe the development of 5G itself will be slowed, given Huawei’s massive input into the technology.
Countries look for 5G alternatives
The U.S has tried to urge other countries not to enter into deals with Huawei on the development of 5G. Pressure is mounting in the UK where the parliament is expected to announce a decision on 5G partners soon. Huawei is being considered.
Australia and New Zealand have stated they will not use Huawei hardware in its 5G rollout. China and the United States are embroiled in an ongoing trade war that is complicated by the Huawei issue.
The complex trade and diplomatic struggle is also connected to the arrest of Huawei's CFO in late last year in Canada, under extradition orders by the U.S. At the time, the United States government accused Huawei of breaking trade sanctions with Iran.