China issues 5G licenses in timely boost for Huawei

A 5G logo is displayed at the Mobile World Congress

China has granted commercial licenses to operate 5G to three telecommunication network operators in the country, media reports said.

China Thursday granted commercial licences to four state-owned telecom giants to start rolling out 5G services, signalling Beijing's determination to be the global leader in setting up superfast wireless networks amid tensions with the USA over technology and trade.

"After the issuance of 5G licences, we will continue to welcome foreign companies to actively participate in China's 5G market, seek common development of China's 5G, and share the achievements of China's 5G development", said Miao Wei, the minister of industry and information technology, according to the ministry's Twitter-like Weibo account.

Why it's important: China planned to commercialize the 5G in 2020, while the latest move makes a statement that China's 5G won't be delayed because of the United States trade ban on Huawei.

On 3 June, Chinese telecom titan Huawei Technologies echoed a similar sentiment, asking the government to make an independent choice amid pressure from the U.S., which has been asking its allies to give up on plans to develop a 5G network with Huawei's help.

In addition to enhancing the experience for personal use, 5G will help make public life in education, medical services and other fields, as well as the industrial sector, smarter as local governments and firms expedite the development and application of the technology.

"The Ministry of Industry and Information Technology officially issued a 5G commercial license".

It has shipped more than 100,000 5G base stations, ranking top in the world, according to the company.

China Mobile later said it would offer 5G services in 40 Chinese cities this year.

He said that MIIT's announcement may push the country's three telecoms network operators to accelerate their 5G mobile network roll-out plans.

Huawei will get a huge boost from China's 5G expansion as it will get to sell its 5G equipment to carriers.

Huawei, of course, is caught in the middle of a US-China trade war and now is subject to a Trump administration prohibition preventing US companies from doing business with the Chinese vendor.

MediaTek responded that it will provide the latest technology and fully support the domestic 5G commercial deployment. China Unicom announced that it would extensively cover seven cities with 5G and cover the hotspots in 33 more cities.

Huawei has signed a draft agreement with the African Union that includes cooperation in 5G communications.

China was a pioneer in conducting 5G technology research and development (R&D) and has been accelerating the R&D and industrialization of 5G equipment in recent years.

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