China's Shenzhen City Builds '5G' Network... Additional US Sanctions on Huawei

46,000 Base Stations in Shenzhen Battle Zone, First Next-Generation Network City
US Imposes Trade Restrictions on 38 Huawei Subsidiaries in 21 Countries Worldwide

[Asia Economy Beijing=Special Correspondent Jo Young-shin] The Chinese state-run Global Times reported on the 18th that the '5G network construction' work in Shenzhen, Guangdong Province, known as the Chinese version of Silicon Valley, has been completed. Despite additional sanctions on Huawei by the Western camp including the United States, China is walking its own path.

The Global Times stated that a total of 46,000 5G base stations have been installed in Shenzhen, making Shenzhen the first city equipped with next-generation networks. It added that the number of 5G base stations in Shenzhen is comparable to the total number of 5G base stations in Europe.

Additionally, the newspaper explained that as of the end of June, a total of 410,000 5G base stations have been installed on the Chinese mainland, and more than 50,000 base stations will be additionally installed by the end of this year.

The Global Times emphasized that as of the end of July, the total number of 5G users in China reached 88 million.

The newspaper particularly praised Huawei, the 5G equipment provider, as the driving force behind the construction of China's 5G network. The Global Times further emphasized that despite the Western camp including the United States refusing to use Huawei equipment, Huawei's market share in the first quarter of this year was 40%.

The newspaper cited sources saying that the sanctions on Huawei by the Western camp including the United States have rather become an opportunity to build 5G networks across China, and that 5G-related investments will reach billions of yuan within the next five years.

Meanwhile, on the 17th (local time), the U.S. Department of Commerce issued a statement announcing the addition of 38 Huawei affiliates from 21 countries worldwide to the trade restriction 'blacklist.' As a result, the total number of Huawei affiliates subject to sanctions has increased to 152 since being placed on the U.S. blacklist in May 2019.

The sanctioned affiliates include those located in 21 countries such as China, Brazil, Argentina, France, Germany, Singapore, Thailand, and the United Kingdom.

The Department of Commerce also announced that it will not extend the temporary licenses issued to users of Huawei equipment and telecommunications companies. These temporary licenses already expired on the 14th.

U.S. Secretary of State Mike Pompeo posted on his Twitter on the same day, saying, "Today, we dealt a direct blow to Huawei and the oppressive Chinese Communist Party by further restricting Huawei's ability to acquire U.S. technology," continuing the offensive against China.