TechCentral Huawei Technologies is emerging as the runaway winner in China’s US$170-billion (R3.2-trillion) effort to build out its 5G wireless networks, part of a concerted effort by Beijing to seize the lead in a key technology from the US while rebooting a virus-stricken economy.
Since the beginning of the year, Huawei has secured 28.4-billion yuan ($4-billion) worth of 5G equipment orders from the country’s largest carrier, China Mobile, beating out competitors like Ericsson and ZTE to win more than half of the 5G contracts awarded by the operator during the period, according to an analysis of procurement data.
The haul shows Huawei is benefiting from the domestic market and building its telecommunications expertise despite the Trump administration’s blacklisting last year. Beijing has forcefully defended Huawei, and the country’s three wireless operators — all state-backed — have added support through network contracts.
While China has spent years striving for leadership in 5G, the effort took on greater urgency after the coronavirus led to the nation’s first economic contraction in decades. In a meeting with senior officials in March, Chinese President Xi Jinping singled out the technology’s importance for rebooting the economy. Weeks later, the country’s telecoms regulator said China will “make every effort” to hasten the expansion of 5G coverage.
“The focus on build-outs, handsets, and other metrics misses the fact that 5G will be a platform where innovative Chinese companies such as Alibaba, Tencent, Baidu and a host of new tech unicorns will be able to build new applications and use cases,” said Paul Triolo, head of global technology policy at Eurasia Group. “Beijing wants Chinese companies to lead in this race to innovate on top of 5G.”
