Huawei is our partner in rolling out 5G network, says UAE’s du

Washington has warned allies against using Huawei’s equipment, which it says presents a security risk. The Chinese company has repeatedly denied the US allegations. (Reuters/File)
Updated 06 October 2019

Huawei is our partner in rolling out 5G network, says UAE’s du

  • Huawei is the world’s second-largest smartphone company

DUBAI: UAE telecoms company du saw no evidence of security concerns about Huawei’s 5G technology, the company’s chief technological officer Saleem Albalooshi told Reuters on Sunday.

“Huawei is our partner in rolling out our 5G network ... From a security perspective.. we have our own labs in the UAE and we visit their labs ... we have not seen any evidence that there are security holes specifically in 5G,” Albalooshi said.

Washington has been warning allies against using the Chinese company’s equipment, which it says presents a security risk.

Huawei has repeatedly denied the US allegations, which were raised earlier this month during a visit by Federal Communications Commission Chair Ajit Pai to Saudi Arabia, the United Arab Emirates, and Bahrain, all of which use Huawei equipment.

When asked about US threat that it will stop intelligence-sharing with nations that use Huawei equipment, Alabooshi said it is a concern.

“Of course, this is definitely a concern ... but such a thing is the government’s decision. We follow our government’s roads and we are governed by the regulator,” he said. 

Huawei is the world’s second-largest smartphone company. 

Last month, Moscow rolled out the red carpet for the company, letting it develop 5G networks in Russia. Analysts say the move is as much a show of solidarity with Beijing against the US.

Huawei opened its first 5G test zone in Moscow in partnership Russian operator MTS, with a view to rolling out the service to the rest of the capital.

Moscow authorities say the network will become part of the city’s normal infrastructure within the next few years.

A pioneer in telecoms networks compared to many Western countries, Russia plans to deploy 5G in all of its main cities by 2024.

When Chinese President Xi Jinping visited Russia in June — at the height of Washington’s conflict with Huawei — Russia’s main operator MTS signed a contract with the Chinese company.

At the inauguration of the 5G zone in Moscow, the CEO of Russia’s branch of Huawei Zhao Lei praised the company’s activities in the country.

“We have been working in Russia for 22 years. Thanks to our partners, we live well here,” he said. 

He added that Huawei, considered a world leader in 5G technology, plans to “lead in the development of 6G” in the future.

It did not respond to AFP’s interview requests. A source in Russia’s 5G research community said Huawei is the biggest investor in the development of mobile technologies in Russia, with “the largest research laboratory of all operators” in Moscow.


IMF downgrades outlook for world economy, citing trade wars

Updated 15 October 2019

IMF downgrades outlook for world economy, citing trade wars

  • Growth this year will be ‘weakest since the 2008 financial crisis,’ according to 2020 forecast

WASHINGTON: The International Monetary Fund is further downgrading its outlook for the world economy, predicting that growth this year will be the weakest since the 2008 financial crisis primarily because of widening global conflicts.

The IMF’s latest World Economic Outlook foresees a slight rebound in 2020 but warns of threats ranging from heightened political tensions in the Middle East to the threat that the US and China will fail to prevent their trade war from escalating.

The updated forecast released on Tuesday was prepared for the autumn meetings this week of the 189-nation IMF and its sister lending organization, the World Bank. Those meetings and a gathering on Friday of finance ministers and central bankers of the world’s 20 biggest economies are expected to be dominated by efforts to de-escalate trade wars.

The new forecast predicts global growth of 3 percent this year, down a 0.2 percentage point from its previous forecast in July and sharply below the 3.6 percent growth of 2018. For the US this year, the IMF projects a modest 2.4 percent gain, down from 2.9 percent in 2018.

Next year, the fund foresees a rebound for the world economy to 3.4 percent growth but a further slowdown in the US to 2.1 percent, far below the 3 percent growth the Trump administration projects.

IMF economists cautioned that that even its projected modest gains might not be realized.

“With a synchronized slowdown and uncertain recovery, there is no room for policy mistakes, and an urgent need for policymakers to cooperatively de-escalate trade and geopolitical tensions,” Gita Gopinath, the IMF’s chief economist, said in the report.

Last week, the US and China reached a temporary cease-fire in their trade fight when President Trump agreed to suspend a tariff rise on $250 billion of Chinese products that was to take effect this week. But with no formal agreement reached and many issues to be resolved, further talks will be needed to achieve any breakthrough. The Trump administration’s threat to raise tariffs on an additional $160 billion in Chinese imports on Dec. 15 remains in effect.

The IMF’s forecast predicted that about half the increase in growth expected next year will result from recoveries in countries where economies slowed significantly this year, as in Mexico, India, Russia and Saudi Arabia.

This year’s slowdown, the IMF said, was caused largely by trade disputes, which resulted in higher tariffs being imposed on many goods. Growth in trade in the first half of this year slowed to 1 percent, the weakest annual pace since 2012.

Kristalina Georgieva, who will preside over her first IMF meetings after succeeding Christine Lagarde this month as the fund’s managing director, said last week that various trade disputes could produce a loss of about $700 billion in output by the end of next year or about 0.8 percent of world output.

IMF economists said that one worrying development is that the slowdown this year has occurred even as the Federal Reserve and other central banks have been cutting interest rates and deploying other means to bolster economies.

The IMF estimated that global growth would have been about one-half percentage point lower this year and in 2020 without the central banks’ efforts to ease borrowing rates. “With central banks having to spend limited ammunition to offset policy mistakes, they may have little left when the economy is in a tougher spot,” Gopinath said.

In addition to trade and geopolitical risks, the IMF envisions
threats arising from a potentially disruptive exit by Britain from the EU on Oct. 31. The IMF urged policymakers to intensify their efforts to avoid economically damaging mistakes.

“As policy priorities go, undoing the trade barriers put in place with durable agreements and reining in geopolitical tensions top the list,” Gopinath said. “Such actions can significantly boost confidence, rejuvenate investment, halt the slide in trade and manufacturing and raise world growth.”

The IMF projected that growth in the 19-nation euro area will
slow to 1.2 percent this year, after a 1.9 percent gain in 2018. It expects the pace to recover only slightly to 1.4 percent next year.

Growth in Germany, Europe’s biggest economy, is expected to be a modest 0.5 percent this
year before rising to 1.2 percent next year.

China’s growth is projected to dip to 6.1 percent this year and 5.8 percent next year. These would be the slowest rates since 1990, when China was hit by sanctions after the brutal crackdown on pro-democracy demonstrators in Beijing’s Tiananmen Square.