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Huawei and Russia Team Up as Tech Cold War Deepens The partnership of the sanctioned
Huawei and Russia Team Up as Tech Cold War Deepens
Huawei Technologies has drawn closer to Russia, after having been blacklisted by the U.S. and several European countries, a move that has huge implications for both sides, analysts said.
“Huawei is China’s largest technological company. China is friends with Russia, so it is only logical that Huawei now plays a leading role in this friendship,” said Vladimir Rubanov, executive manager of Russian IT company Rosplatforma.
Over the past year, Huawei has made major inroads in Russia. The Chinese tech company has emerged as a leader in Russia in areas ranging from fifth-generation mobile network development to smartphone sales. Huawei is also in the process of significantly expanding its Russia-based research and development operations and forming partnerships with local universities.
Russia, too, is facing antagonism from the West and its relationship with the U.S. is deteriorating. Against this backdrop, the Chinese tech giant is providing the Russian economy with much-needed foreign investment and helping Russian tech specialists acquire new skills, said Rubanov.
During Chinese President Xi Jinping’s visit to St.Petersburg in June, Huawei signed a deal with Russia’s leading telecom company MTS to develop 5G network in the country. The two companies launched their first 5G test zone in Moscow just last month.
On Oct. 8, Huawei Vice Chairman Ken Hu announced that the company would promote the development of 5G in Russia by investing 500 million rubles ($7.8 million) in training 10,000 specialists over the next five years.
Huawei has also established itself as the dominant player in the Russian smartphone market. According to research group M.Video-Eldorado, Huawei and its subsidiary brand Honor overtook Samsung Electronics in the third quarter of 2018 in smartphone sales. A study by the same group in August found that Huawei and Honor together control 37% of the market.
Huawei’s success in the Russian smartphone market is in large part due to its heavy investment in the Honor brand, said Eldar Murtazin, editor-in-chief of Mobile Review. He said Honor won over Russian consumers by offering relatively high-quality phones at below market prices that Huawei’s rivals were either unable or unwilling to match……more here
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