Thailand launches Huawei 5G testbench, even as US urges allies to ban Chinese gears

BANGKOK (Reuters) – Thailand on Friday launched a Huawei Technologies 5G test bench, even as the United States urges its allies to ban the Chinese telecommunications giant from building next-generation mobile networks.

Huawei, the world's largest producer of telecommunications equipment and the second-largest smartphone maker, faces growing international scrutiny, fearing that China will use its equipment for spying purposes, an unfounded fear according to the company.

The 5G test bench in Thailand, America's oldest ally in Asia, will be Huawei's first in Southeast Asia.

Thailand's cooperation with Huawei on the testbed does not mean that it does not care about security issues, said Minister of the Digital Economy, Durongkaveroj Pitcher, to Reuters at the launch.

"We are closely monitoring allegations around the world. However, this 5G testbed project is a trial period for the country, "added Pichet. "We can make observations that will be helpful to confirm or refute the allegations."

Pichet was speaking at the Chonburi test site, at the heart of the $ 45 billion Thai economic government's economic plan – the Eastern Economic Corridor (ECE) – located about 90 km southeast of Bangkok . Suppliers such as Nokia, Ericsson and Thai telecom operators have also set up 5G labs on the site.

Huawei, which derives nearly half of its revenue from outside China, claims to have signed more than 30 5G commercial contracts worldwide. But he has not yet signed a 5G contract in Thailand.

Huawei is in talks with telecommunications operators, such as Advanced Info Service Pcl and TRUE, to enter into local partnerships ahead of the planned national launch in December 2020, industry sources familiar with the issue said.

When asked if the United States had contacted Thailand to ban Huawei, Mr. Pichet replied, "I am not aware of this."

A spokesman for the US embbady in Bangkok said the US "advocated for secure telecommunication networks and free supply chains of suppliers subject to foreign government control or undue influence that poses risks unauthorized access and malicious cyberactivity ".

"We regularly urge allies and partners to take these risks into account and to exercise the same vigilance to ensure the security of their own telecommunication networks and supply chains, including during the allocation process. contracts, "added the spokesman.

Huawei's representatives at the test bench site declined to comment because they were not allowed to speak to the media.

Relations between the United States and Thailand have eased since the Thai army took power during a coup in 2014. By contrast, relations between Bangkok and Beijing are have been warming in recent years, as evidenced by the resumption of defense trade and Chinese investment in the nation of Southeast Asia.

Business as usual

Huawei had previously set up a cloud data center worth $ 22.5 million in the Thai EEC, a central element of the government's policy to boost growth in the country, which was struggling to attract foreign investors other than Chinese.

Alibaba, Tencent, Kingsoft and JD.com have also committed to invest in the CEE.

This contrasts sharply with the scrutiny faced by Chinese investments in other parts of the world in the context of a devastating Sino-American trade war.

On January 30, Reuters reported exclusively that the European Commission is considering proposals to ban Huawei from 5G networks, but that this work was still in its infancy.

For Thailand, Huawei's equipment security concerns come second to its competitive prices relative to US companies, said Pranontha Titavunno, president of the Information Technology Club of the Federation of Thai Industries.

"We do not think so because their products are correct and affordable," Pranontha told Reuters.

"There are still surveillance issues with regard to China … But Thailand does not really have anything of interest that could interest Beijing."