China and Taiwan's telecom companies plan to join hands to enhance research and cooperation on the fifth generation (5G) mobile network technology.  The move was announced at the cross-straits CEO summit in Xiamen, Fujian province.

The joint venture highlights the growing cooperation between Chinese and Taiwanese companies, despite the on-going tension in cross-strait relation. 

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"Both the mainland and Taiwan have open minds for deep cooperation in [the] future, and the two sides can work together to help formulate global 5G standard," said Yang Zemin, vice president and secretary general at China Communications Standards Association. 

Yang added that he is upbeat about the opportunities available to Taiwan-based telecom companies in China's second phase of experimental work on 5G.

The telecom companies from island nation will certainly stand to benefit from this joint venture, given that they have less experience in 5G technology. This view was expressed by Cliff Lai, general manager at Taiwan Star Telecom Corp, a private mobile network operator from Taiwan.

He said that most operators in Taiwan are still operating VoLTE service provisioned over a 4G LTE data network and local telecom companies are unable to enhance technology further due to low data pricing.

China, on the other hand, completed the first phase of 5G technology in September. Leading telecom companies such as Huawei Technologies Co Ltd, Ericsson AB, and Samsung Electronics played a critical role in the testing process.

Cliff Lai noted that both countries would expand their cooperation in the semiconductor business, especially in the chip industry.

According to data from the US International Trade Administration, China is the largest market for semi-conductor, while Taiwan's semiconductor industry ranks second in the world in output.  

TagsChina and Taiwan, 5G Technology in China, 5G Technology, china