The ceremony took place in the Kremlin during a three-day visit by Chinese President Xi Jinping, who attended the ceremony along with Russian President Vladimir Putin. Chinese President Xi Jinping told Russian journalists Chinese consumer demand is driving growth despite the trade war with the United States. Citing security concerns and accusing the firm of being too close to the Chinese government, the USA has barred Huawei equipment from American soil and is pressing allies to do the same.
Spark and the GCSB are in "ongoing discussions" but the telecoms company has not yet gone back with a revised plan. MTS confirmed pilot 5G networks are scheduled to start this year, with further development in 2020.
The Chinese telecom giant has concluded a deal with one of Russia's leading mobile and internet providers amid U.S. pressure on Huawei.
Why has Huawei attracted controversy?
Huawei rejects this claim and says it is independent from the government. Some countries including Australia and New Zealand have blocked Huawei from supplying 5G equipment.
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It will hurt Huawei, which is also the world's second largest smartphone maker, as it gets half of the chips it uses from USA suppliers.
"We are very pleased to conclude a new agreement with MTS, especially in such a strategically important area as the development of 5G", said Huawei Chairman Gou Ping. Washington has alleged a threat to national security, endangering Huawei's business in other parts of the world also.
President Donald Trump has ordered tariffs of up to 25% on hundreds of billions of dollars' worth of Chinese exports and his administration is preparing to extend them to $300 billion more - nearly all items shipped to the USA from China.