The Chinese company Huawei, viewed as a security threat in the United States, on Wednesday (June 5) signed an agreement with the Russian telecommunications company MTS to build a 5G network in the country over the next year.
The agreement was signed on the sidelines of a meeting between Chinese leader Xi Jinping and Russian President Vladimir Putin in Moscow.
Chinese President Xi Jinping (left) and Russian President Vladimir Putin (right) applaud as Guo Ping (second from left), Huawei's deputy chairman of the board, shakes hands with Alexei Kornya (second from right), president and CEO of the Russian mobile operator MTS during time of the signing ceremony in Moscow on June 5, 2019.
The deal will mean "the development of 5G technologies and the pilot launch of fifth-generation networks in 2019-2020," MTS said in a statement.
Huawei's Guo Ping, quoted in the statement, said he was "very pleased" with the agreement "in an area of strategic importance such as 5G."
The Chinese telecommunications giant has been in turmoil since early May when the Trump administration has banned US companies from selling high-tech equipment to Huawei over suspicions that the Chinese company is spying on Beijing.
Experts say the US decision, which takes effect within three months, threatens the survival of the company, which relies heavily on American chips for its phones.
Several companies have already distanced themselves from Huawei, including Google, whose Android system powers the vast majority of the world's smartphones.
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Huawei's stated potential involvement in the UK's 5G network has also proved to be politically sensitive and now Theresa May's government is insisting that no decision be made on the matter.