SinoInsight 1
Huawei plans to invest 5 billion yuan (about $795 million) to develop its 5G network and equipment in 2018, according to Feb. 11 report by semi-official Chinese media. The company plans to launch a full set of 5G equipment including radio access networks, carrying networks, core networks, and terminals.
OUR TAKE
Huawei has military connections, and 5G development is China’s national strategy. We believe that China’s increased efforts to push out a 5G standard will provoke the United States to roll out or support the development of a 5G network to safeguard America’s communications and internet security.
SinoInsight 2
The Chinese Communist Party will hold its Two Sessions meeting in March. Based on our research, we believe that Zhang Chunxian, the former Xinjiang Party secretary and Jiang faction member, could be appointed as a vice chairman of the National People’s Congress at the Two Sessions.
OUR TAKE
We have observed that Xi Jinping has sidelined prominent Jiang faction members by assigning them to sinecure positions. If Zhang becomes an NPC vice chair, this indicates that while Xi has further consolidated power at the 19th Congress, he is not yet in a position of absolute dominance and still needs more time to firm up his control over the Chinese regime.