Hong Kong (CNN Business) Embattled Chinese tech company Huawei has struck a deal to build Russia's first 5G wireless network.

The agreement with Russia's largest carrier, MTS, was signed on the sidelines of talks in Moscow between Chinese President Xi Jinping and Russian President Vladimir Putin.

Washington has also been urging allies to restrict or ban the use of Huawei equipment in their 5G networks, warning that Beijing could use the sensitive data infrastructure for spying. Huawei has repeatedly denied that any of its products pose a national security risk.

Chinese President Xi Jinping and Russian President Vladimir Putin applaud as Huawei executive Guo Ping shakes hands with Alexei Kornya, President and CEO of Russian mobile phone operator MTS.

Huawei is the world's biggest telecom equipment supplier and the No. 2 smartphone brand behind Samsung. But the US restrictions pose a huge threat to its business and could delay the global rollout of 5G . The next generation of ultra fast networks will power everything from self-driving cars to networked robots.

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