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| 5G is the next-generation cellular network that offers faster data transfer speed and could enhance technologies such as autonomous driving, remote medical diagnosis and mobile payments (AFP Photo/STR) |
China on Thursday granted 5G commercial licences to four domestic companies, as it races to be a global leader in advanced wireless networks amid fierce rivalry from the United States.
5G is the
next-generation cellular network that offers faster data transfer speed and
could enhance technologies such as autonomous driving, remote medical diagnosis
and mobile payments.
But
Beijing's ambitions have faced a major challenge from Washington, which has
blacklisted Chinese tech giant Huawei just as it seeks to provide equipment for
5G networks in several countries.
Since last
year, 5G trials have been conducted in Chinese cities ahead of plans to deploy
the technology across the country in 2020, and now the government has given the
green light.
The
Industry and Information Technology Ministry said state-owned telecom providers
China Telecom, China Mobile, China Unicom and China Broadcasting Network
Corporation received business licences to operate fifth-generation digital
cellular mobile communication services.
"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.
wi
China
Mobile later said it would offer 5G services in 40 Chinese cities this year.
The United
States has urged other countries to shun Huawei over concerns that its
equipment could be used by Beijing's intelligence services.
Chinese
5G to 'lead world'
Commenting
on the announcement, Huawei -- which produces both network equipment and mobile
phones -- said it will "fully support" Chinese operators to build 5G
infrastructure.
"(We)
believe that in the near future, China's 5G will lead the world," Huawei
said on Weibo.
Another
Chinese phone maker, Vivo, said its 5G devices are ready for network testing
and will be on sale once trials are complete.
The
administration of President Donald Trump banned US companies in May from
selling high-tech components to Huawei on national security grounds, though a
90-day reprieve was issued.
The move
has led to an escalation in the US-China trade war, with Beijing preparing its
own blacklist of "unreliable" foreign companies.
Several
firms have already distanced themselves from Huawei, including Google, whose
Android operating system runs the vast majority of smartphones in the world.
Huawei
signed a deal with Russian telecom company MTS on Wednesday to develop a 5G
network in the country over the next year, on the sidelines of a meeting
between Chinese leader Xi Jinping and Russian President Vladimir Putin in
Moscow.
The firm
has also signed a draft agreement with the African Union that includes
cooperation in 5G communications.
Foreign
ministry spokesman Geng Shuang said the approval of the licenses was Beijing's
way to show the world that "China will continue to expand its openness and
sustain the global free trade system that is experiencing volatility due to
unilateralism and protectionism".
South Korea
launched the world's first nationwide 5G mobile networks in April, while US
mobile carrier Verizon began rolling out its 5G services in Chicago and
Minneapolis.
A limited
rollout is also expected in Japan in 2019 before full services start in time
for next year's Tokyo Olympics.
It is the
rollout in China, however, that is likely to have a global impact on 5G
technology.
"As
the world's largest mobile market, almost anything that China does is
significant," said Peter Jarich, head of GSMA Intelligence, adding that
the country has the "power to drive the market... around the world".
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