Huawei, in full battle with the United States, signs an agreement to develop 5G technology in Russia

The two companies will develop next generation 5G networks in this country over the next year.

The agreement was concluded on the occasion of the three-day visit that Chinese President Xi Jinping is making to Russia these days.

This alliance contrasts with the veto imposed by several countries at the head of the United States, Huawei, alleging that this poses a risk to national security, and the executive order of US President Donald Trump, which limits the capabilities of Chinese society. to trade with companies from the country of North America.

In fact, the US decision This already has an impact on the technology sector.

Google, Qualcom, Broadcom, Intel and Panasonic are among the companies that have turned their back on Huawei for fear of sanctions from the United States.

The agreement will involve "the development of 5G technologies and the pilot launch of fifth generation networks in 2019 and 2020," said the MTS operator in a statement collected by AFP.

Trade between China and Russia reached a record last year, exceeding 100 billion US dollars.

The agreement should probably relieve the Chinese technology giant, which has been the subject of intense international scrutiny in recent months.

Why this controversy with Huawei?

Huawei has become a central part of the conflict between the United States and China, which started in the commercial arena and has now moved to the technology sector.

USA He encouraged his allies to block Huawei in the development plans of 5G networks, saying the Chinese government could use them to spy.

Huawei rejects these claims and claims that it is an independent company.

However, some countries, including Australia and New Zealand, have prevented the Chinese giant from providing equipment for 5G mobile phone networks.

Washington's efforts to block Huawei escalated last month when the Trump administration added Huawei to a list of companies with which US companies can not trade without a license.

The US decision to be on Huawei's blacklist could have serious consequences.

"The move by the United States against Huawei marks a defining moment and a very significant escalation of bilateral tensions," said Michael Hirson, Asia director of the Eurasia Group.

For starters, it will hurt Huawei, which is also the second largest smartphone maker in the world, because half of the chips it uses come from American manufacturers.

In addition, US companies could lose a key customer and the development of 5G could be delayed, Huawei is a major player in its development, according to badysts.

Some believe that the measures taken by Washington against Huawei are part of a larger strategy to limit the growing importance of China in the world.

China and the United States have also been waging a trade war since last year, imposing multibillion-dollar tariffs on imports from the other party, in a escalation that has not escalated. has not stopped growing.

BBC.