Amid the China-US trade war that has escalated to higher levels last month, Russian telecoms MTS has signed a deal with Huawei to develop 5G technology for them. According to reports the contract was signed upon China’s President Xi Jinping began a three-day visit to Russia where he met with Russian President Vladimir Putin.
The deal will make Huawei see “the development of 5G technologies and the pilot launch of fifth-generation networks in 2019 and 2020,” MTS stated.
Huawei’s Guo Ping expressed his joy about the deal as it touches “an area of strategic importance like 5G.”
Huawei is already facing troubles with Western countries over the possibility of the Chinese government using Huawei’s 5G equipment to spy on other countries.
Huawei is already facing restrictions for developing 5G technology in both New Zealand and Australia.
The Russian deal will be hugely beneficial to Huawei Technologies Co., which as per now leads in the development of 5G equipment and still the second largest smartphone producer.
Analysts have stated the effects of banning a key player like Huawei Technologies Co. will lead to massive slow down in the development of the new technology.