Huawei and ZTE, two of the biggest firms in the implementation of 5G telecommunications networks worldwide begin to feel the effects of US sanctions and worldwide shunning as countries force their carriers to engage with other manufacturers. In Mainland China, Huawei and ZTE have delayed their massive plans to install 5G base stations all over the country. China’s plans to rely on domestic technology amidst a bitter trade war with the United States of America has them redesigning products and changing equipment to remove American components. Meanwhile, in Mainland China, network carriers face uncertainty amid returns on investments as the rolling out of 5G base stations slows down as domestic manufacturers de-Americanize network equipment.
Chinese government authorities’ push towards 5G is evident. During the course of this year, Beijing authorities created a nearly-autonomous 5G ministry, putting key players of Chinese tech industry oversight at its helm as the Asian nation plans to double the number of base stations in Mainland China.
Bad Weather & Floods Slow Down 5G Rollout In Mainland China
Massive rains and floods add up to reasons for the delays in the implementation of 5G infrastructure in many provinces in Mainland China. And while the Chinese network providers like China Telecom, China Unicom and China Mobile, who signed massive contracts with government-owned companies like ZTE and Huawei are waiting to see some returns on their investments, the manufacturers continue to produce equipment for local demand using their massive stockpiles.
5G technologies and their implementation are crucial to the Chinese government “New Infrastructure Initiative” which aims to bolster the Asian nation’s economy as they slowly roll out of the pandemic that put the world’s productive apparatus on a halt, forcing every industry to reshape the way they conduct commercial relations.
China Mobile, the largest carrier in the world by mobile subscribers, considers that despite their 5G implementations, their expenditures will not increase despite the delay. China Unicom considers that the investment saved their company money in regards of network and equipment maintenance as well as utility charges. For China Telecom, the network provider considers that deepening the relationship with 5G manufacturers will reduce operational expenditures.
Chinese telecommunications equipment suppliers are at the center of several oversight probes as well as regulatory affairs investigations and criminal charges following racketeering practices, theft, industrial espionage, sabotage and massive surveillance. These investigations have made their way to the media and have been accompanied by sanctions and trade restrictions that have hampered the supply chain continuity for these Mainland China companies. Despite these legal issues, the slowdown in the 5G rollout is only temporary, because the Beijing government wants 5G capacity this year in Mainland China, the carriers are expectant and the hi-tech industrial parks in several provinces of the country are slowly but steadily beginning to operate again at full capacity right after the coronavirus epidemic slows down.