China's Huawei, considered a security threat in the US, on Wednesday signed a deal with Russian telecoms company MTS to develop 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.

The deal will see "the development of 5G technologies and the pilot launch of fifth generation networks in 2019-2020", MTS said in a statement.

Quoted in the statement, Huawei's Guo Ping, said he was "very happy" with the agreement "in an area of strategic importance like 5G".

The Chinese telecom giant has been in turmoil since May, when the Trump administration banned US companies from selling high-tech equipment to Huawei over suspicions it is spying for Beijing.

Experts say the US decision, to come into force within three months, threatens the survival of the company, which is highly dependent on US chips for its phones.

Several companies have already distanced themselves from Huawei, including Google, whose Android system equips the vast majority of smartphones in the world.

Huawei's reported potential involvement in Britain's 5G network has proved politically sensitive and Theresa May's government insists no decision has been made on the issue.

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Huawei a key beneficiary of China subsidies that US wants ended
Beijing (AFP) May 30, 2019
A replica of the Palace of Versailles, medieval turrets, and spires rise across Huawei's new campus in southern China, a monument to the telecom giant's growing fortune - and the benefits of state aid. The fairytale-like facilities rest on land that was sold by the local government at cut-rate prices to woo and bolster a strategic, high-tech company like Huawei. It is the kind of government largesse that has fanned US frustrations at China's industrial policies - subsidies are a sticking point ... read more