‘Stability’ aim of Abe’s China visit

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China's Premier Li Keqiang (L) gestures as he speaks with Japan's Prime Minister Shinzo Abe as they arrive to pose for a family photograph during an ASEM summit at the European Council in Brussels on October 19, 2018. (Photo by JOHN THYS / AFP)
China’s Premier Li Keqiang (L) gestures as he speaks with Japan’s Prime Minister Shinzo Abe as they arrive to pose for a family photograph during an ASEM summit at the European Council in Brussels on October 19, 2018. (Photo by JOHN THYS / AFP)

‘Stability’ aim of Abe’s China visit

ASEAN+ October 24, 2018 08:47

By The Japan News
Asia News Network
Tokyo

Prime Minister Shinzo Abe will pay an official visit to China from Thursday to Saturday — the first official visit to China by a Japanese prime minister in seven years — to mark the historic milestone of the 40th anniversary of the Japan-China Peace and Friendship Treaty, signaling a turning point in the tortuous bilateral relationship.

The treaty entered into effect on Oct. 23, 1979.

“It would be acceptable even if [Abe’s visit] does not lead to an improvement in Japan-China relations as what we aim [to achieve] is stabilization” of the ties, a senior Japanese government official said.

The relationship rapidly cooled following Japan’s nationalization of some of the Senkaku Islands in Okinawa Prefecture in September 2012. China strongly reacted to Abe’s sudden visit to Yasukuni Shrine in December 2013. Since then, the two nations have had one confrontational situation after another.

By mentioning “stabilization,” the senior official apparently meant restoring the steady ties that existed in 2012 and earlier.

A turning point came in Hamburg, Germany, on July 8, 2017, at a meeting between Abe and Chinese President Xi Jinping on the sidelines of the summit meeting of the Group of 20 major economies in the German city. Political issues must be solved one by one while squarely facing the past, Xi told Abe at the meeting.

But doing these must not hinder the development of bilateral economic ties, the Chinese leader added, in an apparent reference to separating politics from economics. Xi gave “a message to call for unconditionally developing bilateral economic ties,” said a diplomatic source knowledgeable about Japan-China relations.

In response, Abe gave Xi a positive view of the Belt and Road Initiative, a policy Beijing announced in 2013 to create a mega economic zone, by saying: “It is a vision with potential. We want to cooperate [with China].”

In May, Chinese Premier Li Keqiang paid an official visit to Japan, the first such visit in eight years by a Chinese premier. On the trip, Li consistently sent friendly signals to Japan.

China’s range of concerns

The change in bilateral relations is attributable mainly to the Chinese side. In recent years, Southeast Asian countries and other nations have piled up complaints about China’s high-handed approach to economic assistance in relation to the Belt and Road Initiative. Infrastructure projects have been stalled one after another as China does not take into consideration its counterparts’ repayment capability. In 2018, pro-China ruling parties lost elections in such countries as Malaysia and the Indian Ocean island country of Maldives.

Furthermore, China has been involved in a confrontation with the United States, which could be called a trade war. With the international environment surrounding China becoming harsher year by year, the improvement of its relations with Japan came to bear more significance.

Domestic situations in China also had an impact on the change. In the meeting of the National People’s Congress — China’s national legislature — in March this year, the constitutional provision that limited the state’s president to two terms totaling 10 years was deleted, making it possible for Xi to continue eternally in the post of the president.

A senior Japanese Foreign Ministry official said, “Xi’s power base has been stabilized and thus he obtained a free hand in diplomatic relations with Japan.”

On Friday during Abe’s visit, a forum will be held about infrastructure projects in third-party countries, such as Asian and African countries, which are included in the Belt and Road Initiative. The forum will be coorganized by Japanese and Chinese governments and private companies. The Chinese side likely intends to make the forum a place where China provides the participating countries with a view that China and Japan are in step in terms of the infrastructure projects.

Security still issue for Tokyo

Under such circumstances, however, Japan cannot wave away concern over its security relationship with China.

According to the Japan Coast Guard, the number of intrusion by Chinese government vessels into Japanese territorial waters around the Senkakus in 2018 was 18 as of Sunday. Japan has protested these Chinese activities each time it detected the intrusion.

China continues to make artificial islands its military foothold in the South China Sea in spite of opposition from Southeast Asian countries.

The difference in the sense of values between Japan and China is also clear.

At a conference to promote exchange between Japanese and Chinese ruling parties in Toyako, Hokkaido, on Oct. 10, Song Tao, head of the Chinese Communist Party’s international affairs department, said that ruling parties of both countries urge the media to report the truth and have the media correct misinformation.

Toshihiro Nikai, secretary general of the ruling Liberal Democratic Party, who participated in the conference, said: “Freedom of the press is the most basic. It’s quite evident.”

Nevertheless, the Abe administration has launched efforts for the improvement of bilateral relations, seeing many advantageous points associated with it. A senior Japanese Foreign Ministry official said: “In diplomacy, there are factors [like those] seen in the Othello board game. If the Japan-China relationship changes from that of confrontation to improvement, the situation surrounding the Northeast Asia will also change.”

For Abe, whose term of office as president of the LDP will expire in three years, the improvement of Japan-China relations is an indispensable element to the realization of his own diplomatic legacy, including relations with Russia and North Korea.

It is highly likely that Xi will visit Japan next year on the occasions of the G20 meeting and other events in Japan. There is an influential view within Tokyo that the next year is an opportunity for the improvement of the bilateral relations.

Even while a great difference in positions on security and other issues persists, Japan and China are shortening the distance between them by putting importance on their own actual benefits in the economic and diplomatic sectors.

More than 20 injured in Rome escalator collapse

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More than 20 injured in Rome escalator collapse

Breaking News October 24, 2018 06:40

By Agence France-Presse
Rome

More than 20 people, mainly Russian football fans, were injured Tuesday when an escalator in a metro station in central Rome collapsed, firefighters said, in an incident some blamed on raucous soccer supporters.

Most of those hurt, one seriously, suffered leg injuries after getting entangled in the escalator’s mangled mechanics, Italian media added.

A video of the drama shows the descending escalator at Repubblica station suddenly and dramatically pick up speed with dozens of people on it, many screaming as they piled on top of one another at the foot of the moving stairway.

Media reports said witnesses spoke of football fans, seemingly drunk, jumping and dancing on the escalator just before its collapse, but supporters denied this ever happened.

“In any event, we are here to understand what happened and to offer our support to the wounded and their families,” Rome mayor Virginia Raggi told journalists at the scene.

Several investigations have been opened, and the metro station near Rome’s Termini train station was closed.

The horrific events took place around 1730 GMT, just over an hour before the kickoff of a Champion’s League match between Italy’s Roma and Russian club CSKA Moscow.

The Russian fans were headed for the metro that would have linked them to the train to the stadium.

There was heightened security in Rome for some 1,500 Russian supporters, notoriously rowdy, expected to watch the game.

One Russian supporter, the subject of a stadium ban, had already been stopped at the airport as he tried to enter.

But according to Italian media, this did not prevent an assortment of incidents around the stadium hosting the match. One Russian fan was stabbed with a knife, and two others were hurt in clashes with other supporters.

Roma won the group stage match 3-0, tweeting after the match that: “The thoughts of everyone at #ASRoma are with the supporters injured prior to tonight’s game. The club will do everything it can to provide the right support and assistance to those in need.”

Rome’s public transport is often criticised as running on obsolete equipment.

In recent years, more than a dozen municipal buses have caught fire while in service, with several reports of metro passengers injured by malfunctioning hardware.

Vietnam’s party chief Nguyen Phu Trong sworn in as the new President

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Vietnam's General Secretary Nguyen Phu Trong (L) takes the oath of office after being elected as President of Vietnam in Hanoi// EPA-EFE/STR
Vietnam’s General Secretary Nguyen Phu Trong (L) takes the oath of office after being elected as President of Vietnam in Hanoi// EPA-EFE/STR

Vietnam’s party chief Nguyen Phu Trong sworn in as the new President

ASEAN+ October 24, 2018 01:00

By Agence France-Press
Hanoi

Vietnam lawmakers on Tuesday elected as president Communist Party chief Nguyen Phu Trong, the only candidate on the ballot, making him the most powerful man in the country where consensus leadership has traditionally kept strongman rule in check.

Trong was ushered into his new role as head-of-state with 99.8 percent of the vote from Vietnam’s rubber stamp parliament members a month after the former president died from a prolonged illness.

Though the president’s role is seen as largely ceremonial, 74-year-old Trong will maintain his position as party head — the first person to hold both roles since revolutionary leader Ho Chi Minh in the late 1960s.

His new position was cemented in a tightly orchestrated swearing-in ceremony on Tuesday after an overwhelming vote from 477 lawmakers, with only one vote against, according to the government’s website.

“I, president of Vietnam, vow to be completely loyal to the nation, people and constitution,” Trong said at the ceremony, speaking beneath a large bust of Ho Chi Minh.

“This is a very huge honour, while at the same time, a very heavy responsibility for me,” he added, acknowledging his advanced age.

His election comes as no surprise after the Communist Party’s Central Committee put his name forward as the only contender last month following the death of Tran Dai Quang, a former police chief who had been president since 2016.

Trong’s dual role in two of the so-called “four-pillar” top leadership positions allows him to yield a huge amount of power in the government whose inner workings are often shielded from the public.

The two other “pillars” are the prime minister and National Assembly chair.

His appointment is not likely to shake up politics in the one-party state, though observers have said it will eliminate any potential opposition to an anti-corruption campaign that he has spearheaded since his re-election as party chief in 2016.

The campaign has seen dozens of top officials, executives and bankers put behind bars, many seen as Trong’s political foes because of their perceived alliance to former prime minister Nguyen Tan Dung who was sidelined in the last leadership shuffle two years ago.

 

– ‘Politically unassailable’ –

 

Some say the campaign likely allowed Trong to secure the top job as president, an unlikely and rare move.

“Trong did this because he is currently in a politically unassailable position,” Zachary Abuza, a professor at the National War College in Washington, told AFP.

“(He) has effectively used ‘anti-corruption’ to purge rivals within the party,” he added.

Trong’s time in office has also coincided with a crackdown on dissidents, with more than 55 jailed this year alone, according to an AFP tally, that rights groups say shows no sign of abating.

The US ambassador to Vietnam congratulated Trong on the post Tuesday, celebrating cosying ties between the former war enemies who are both seeking to counter China’s rising military and economic might.

“We look forward to continuing to work closely with President Trong on further strengthening and expanding the US-Vietnam Comprehensive Partnership,” ambassador Daniel Kritenbrink said in a statement.

In addition to running the powerful Communist Party, as president Trong will now be in charge of welcoming foreign delegates and travelling abroad as the public face of the administration.

The white-haired longtime party member has a carefully guarded reputation as a committed apparatchik, and is also a member of the powerful politburo.

Online education booms in China

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Online education booms in China

ASEAN+ October 23, 2018 01:00

By CHINA DAILY
ASIA NEWS NETWORK
BEIJING

ONLINE EDUCATION is continuing to see huge growth in China, with the market predicted to hit 267 billion yuan ($38.6 billion, Bt1.3 billion) by the end of 2018, up 27.3 per cent year-on-year, said an industry report released on Monday.

A total of 7.4 billion yuan was invested in quality-oriented education in the first half of this year, accounting for 28.9 per cent of total investment in the online education industry, according to a report by market research consultancy Big-Data-Research.

Sectors including language, K12, early education and professional training are some of the other popular areas that investors are looking on favourably. “Together, financing in the country’s online education industry in the first six months of this year can rival the total fundraising scale last year,” said Li Ruixiang, chief analyst of BDR, at an education summit held by Beijing Business Today.

In China, education is seen as a key priority for families and many look to extra-curricular classes as a way to give their children an edge. Today, commercially run education centers are a familiar sight across Chinese cities, but online firms say they provide a lower-cost, home-based alternative for households.

Li said that the second-child policy, as well as emerging technologies, including artificial intelligence and livestreaming, had all contributed to the nation’s burgeoning online education market.

He also noted that online programming classes and brain training are gaining popularity in the market this year.

“One reason that online programming is gaining momentum is because it is helping kids to develop their well-rounded abilities including thinking abilities, which has usually been ignored in the country in the past,” said Liu Yiyang, co-founder of Codemao, a Chinese online programming startup.

The growth comes as Chinese education authorities seek to renovate after-school training institutions, and cut excessive academic burdens for the country’s primary and secondary school students.

“For investors, they care more about the future direction.

“On a broader scale, only changes in policy will bring about more room for growth and new opportunities,” said Ji Liyin, vice-investment president of Founder H Fund.

Thereby, emerging areas will be the first priority for investors, he said, adding that industries where technologies are bringing a lower work burden for humans will be a good direction for investment.

AI eyed for clerical tasks of Japan prefectures

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AI eyed for clerical tasks of Japan prefectures

ASEAN+ October 23, 2018 01:00

By THE YOMIURI SHIMBUN
ASIA NEWS NETWORK
TOKYO

JAPAN’S Internal Affairs and Communications Ministry plans to launch an experiment next fiscal year to promote the use of artificial intelligence and other advanced technologies to streamline the administrative work of local governments, according to sources.

The ministry intends to seek proposals from local governments and select about eight pilot municipalities to examine the effectiveness of using such technologies over a two-year period. In preparation for a decrease in the number of employees due to the declining birth rate, the ministry hopes to maintain the level of services even with half the current workforce.

Specifically, AI will be employed experimentally for tasks that are relatively simple but are time-consuming and require staff, such as the processing of various applications from residents and tax matters. The ministry also plans to use robotic process automation (RPA, see below) designed to automate manual processes. It will examine the accuracy and efficiency of the work done by AI and push for the introduction of successful measures nationwide, according to the sources.

The central government will provide financial assistance to the pilot municipalities. The ministry has included 240 million yen (Bt70 million) in its budgetary request for fiscal 2019 as related expenses.

Some local governments have successfully streamlined their administrative operations by already introducing AI and other technologies on their own.

In January this year, the Tsukuba city government in Ibaraki Prefecture began employing RPA on a trial basis to process transfer reports related to residents’ changes of residence. If identification documents are lacking, a written notification is sent to the person for confirmation.

At the peak moving season in March and April every year, the city government faces an enormous job of sending out documents. It has spent about 85 hours handling the related work every year, but that has been reduced to about 14 hours by taking advantage of RPA for name entry and other tasks. Other cases include the introduction of AI by the Saitama city government for selecting people who want to put their children in day care facilities and assigning them to certain facilities, as well as a road damage inspection in which the Chiba city government used AI to analyse images.

Answering questions

The Osaka city government has launched a system in which residents’ questions about applications for services that younger employees have difficulty answering are handled automatically by AI, which has learned complicated legal systems and acquired the knowledge of experienced employees. In 2017, the number of local government employees totalled 2.74 million, down 540,000, or 16.4 per cent, from its peak figure of 3.28 million in 1994. According to an estimate by the ministry, this figure is expected to be down 10 to 20 per cent in 2040 from the 2013 level. In towns and villages with a population of less than 10,000, the number of employees in general administrative jobs is expected to fall from 62 to 47 on average. Improving the efficiency of operations has become a pressing issue.

Robotic process automation (RPA)

RPA is a software robot designed to automatically conduct computer operations such as inputting and aggregating data and collecting information on the Internet to replace human workers.

The technology can reduce simple mistakes that could be caused in human manual processes, as well as the amount of work.

‘Artificial moon’ coming

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‘Artificial moon’ coming

ASEAN+ October 23, 2018 01:00

By Philippine Daily Inquirer
Asia News Network

CHINA IS ONCE again channeling science fiction in one of its most ambitious projects to date: an “artificial moon” to light up the streets of Chengdu city.

Wu Chunfeng, chairman of Chengdu Aerospace Science and Technology Microelectronics System Research Institute Co Ltd, announced that the city will launch an illumination satellite or “artificial moon” in 2020, as reported by People’s Daily on Tuesday, October 16. Wu revealed Chengdu’s plan during the national mass innovation and entrepreneurship activity held in the city on October 10.

Apparently, the project was started “years ago.” Wu stated the announcement came after they had assessed that the illumination satellite has reached maturity.

The “artificial moon” will be made to accompany the real moon. Wu said the illumination satellite’s brightness is eight times that of the real moon.

The sci-fi like technology has the ability to lit up an area with a diameter of 10 to 80 kilometers as per the report.

A quick solution to your financial crunch

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A quick solution to your financial crunch

ASEAN+ October 23, 2018 01:00

By THE DAWN
ASIA NEWS NETWORK
KARACHI

TEZ FINANCIAL Services is a Karachi-based fintech startup, offering nano loans digitally, and without any paperwork. A loan you can get in as little as 15 minutes.

What exactly is a nano loan? It’s like microfinance, but smaller, in terms of both amount and maturity. So while micro would be lending somewhere around Rs10,000 (Bt2475) to a few hundred thousand with maturity generally between 4-24 months, nano gives out Rs1,000-5,000 with maturity usually up to a month. Think of it this way: where microfinance is meant for medium to long-term needs, nano is largely for cash flow management.

How does its work? Download Tez — on android, upload your CNIC pictures along with a selfie (with CNIC) for verification and answer 12 questions on income and other details to apply for Tez advance. Based on artificial intelligence, a credit limit will be assigned and you can then decide on the term limit.

And finally, the amount will be transferred to your mobile account (Easypaisa etc), but in case you don’t have one, the app will direct you to one. The money can be either collected from an agent or used via an e-wallet. Moreover, they also offer free health and life insurance (Tez Bima) valid for the loan term in partnership with EFU Life and Jubilee General.

It sounds very complicated in text, but it’s quite simple, especially compared to traditional microfinance institutions where loan approval can take ages. And that’s exactly their unique selling point: nimbleness. “Our process doesn’t take more than 15 minutes, neither is there any need for collateral of any sort,” CEO Nadeem Hussain says.

No collateral, mostly no credit history or background checks, so how does Tez ensure recoveries? Well, as is obvious, only the applicants who check certain boxes according to the company’s algorithms get their loans approved. And what if one doesn’t pay back? Then he’s reported to the credit bureau, limiting his/her chances to borrow in future.

But since it’s quite new, there is not enough data to have very refined algorithms and that means a greater risk of default as well as higher interest rates. “Both these rates will come down once we have more data, but for now we’ll have to bear with high default rates while customers will be charged more in markup,” Nadeem says.

Given such small amounts, Tez’s market is the blue collar workers, housewives, retirees and students. While their source of revenue is the markup charged (non-cumulatively) on each loan, which is paid along with principal. Other than that, Rs20 are charged upfront as processing fee. The startup just raised $1.1 million in seed money from Omidyar Network – Ebay Founder Pierre Omidyar’s impact investment firm, Accion Venture Lab and Planet N. This investment will be used for building a credit lending portfolio, technology upgrade and to obtain a non-bank microfinance company licence.

The company was launched beginning of this year when two young credit risk analysts and microfinance specialists — Naureen Hyat and Hamza Hussain — joined forces with a veteran banker and Tameer Microfinance Bank (now Telenor Bank) founder, Nadeem Hussain.

Tez’s brand equity lies in two things: (lending through) tech and data science. And at the moment both have been outsourced. The former is done by Venturedive – the IT firm looking after Careem’s system – while Nexdegree oversees the latter. How exactly can a startup hope to succeed if its core offerings are being done by someone else?

“We are too young a startup to be able to afford development and analytics on our own so we partnered up these companies, where there’d be specific teams working on Tez and after a certain timeframe, will join us,” Nadeem explains.

Globally, the microfinance industry has come under fire for its exorbitant interest rates. Nano-finance, given even greater risks, ought to have higher interest rates (currently around 15 per cent a month).

“With nano, we are moving away from that high-operational cost model. Since it will be based on tech, it will drastically bring down the operational costs, and reduce the interest rates,” he says.

Nano finance is relatively new with only Telenor venturing into this territory.

Other telcos and banks are likely to follow suit. So how does a local startup hope to stay in the game when goliaths decide to fight it out?

“I am not too concerned about banks.They will hurt their brand with such default and interests rates and probably end up cannibalising their core business,” Nadeem says.

Telcos on the other hand “have access to the huge feature phones market and data which provides them with potential to penetrate deeper.

But the data I have, albeit covering a smaller chunk, will be richer than theirs. Plus the smartphone market is set to grow,”

Moving forward, Nadeem hopes to transform it into a full stack digital bank, venturing into savings and other products, with eyes already set on series A funding by June next year. The brain behind EasyPaisa and Telenor Bank, Nadeem is optimistic that this is time for tech, and nano.

Experts to share success stories at ICON2018

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Experts to share success stories at ICON2018

ASEAN+ October 23, 2018 01:00

By THE JAKARTA POST
ASIA NEWS NETWOK
JAKARTA

VENTURE BUILDER company GDP Venture will host innovation conference ICON2018 on November 13. In its third installment this year, it will present issues on digital transformation, with local and international business experts and digital professionals featuring as speakers.

“As a digital based company, the conference we will be hosting also revolves around digital issues,” said Ossy Indra Wardhani, GDP Venture’s head of PR, in a press statement. “For this year, we will feature transformation as the big theme, as we see that digital technologies are intertwined in daily lifestyles.”

With the increasingly digital application in life along with the ever-changing technology, companies are constantly expected to keep up with the market’s needs. This, in turn, will also influence the companies’ strategies and leadership styles. The conference hopes to address the opportunities and challenges that come with the transformation.

Founded in 2010, GDP Venture aims to create a healthy ecosystem in creating world-class digital companies, supported by technopreneurs, engineers, product and marketing experts. For ICON2018, the company has invited business experts and professionals to share their successful digital transformation stories. “In the hope that they will inspire companies who are looking for this kind of information,” Ossy added.

Fifteen speakers are set to participate in the conference. They are, among others, Communications and Information Minister Rudiantara; Antonny Liem of Merah Putih Incubator, which provides mentorship and infrastructure, among other things, to tech and digital startups; Armand Hartono of Indonesia’s largest private lender BCA; Hari Shankar of Singapore Media Exchange; Nadiem Makariem of popular ride-hailing application GoJek; Nishant Raju of American data management platform Lotame; Rob Sebastian of London-based entertainment content and intellectual rights organization XIX Entertainment; Suresh Mylavarapu of Google; Upen Barve of German-based European multinational software corporation SAP and William Tanuwijaya of online marketplace Tokopedia.

ICON2018 will be held at the Grand Ballroom of Hotel Indonesia Kempinski. Early bird tickets are now available with a 20 per cent discount.

3 Korean firms on Fortune’s ‘Future 50’ list

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3 Korean firms on Fortune’s ‘Future 50’ list

ASEAN+ October 23, 2018 01:00

By THE KOREA HERALD
ASIA NEWS NETWORK
SEOUL

SOUTH KOREAN internet giant Naver and the country’s top biopharma companies Celltrion and Samsung BioLogics have been listed on Fortune’s Future 50, which ranks global companies with the best prospects for long-term growth.

The global business magazine on Friday announced the Future 50 list, compiled annually in partnership with the Boston Consulting Group.

Naver, which operates Korea’s dominant portal website, ranked sixth. Celltrion, a developer of biosimilar drugs, ranked 17th, while contract drug manufacturer Samsung BioLogics came in at No 47.

Fortune said Naver’s share price has more than doubled since 2013, and that the firm is poised to extend its reach in cloud services and payment processing. It also praised Line, its mobile messaging subsidiary, and its foray into cryptocurrency.

With its arsenal of biosimilars – cheaper copies of pricy cell-based biologic drugs – Celltrion was projected to achieve up to 25 per cent future annual growth, with sales in multiple markets.

Meanwhile, Fortune projected Samsung BioLogics to generate annual revenue growth of 40-60 per cent for years to come through its possession of the world’s largest pipelines for biosimilar drugs in partnership with Biogen and AstraZeneca.

“Through its inclusion in the Fortune 50 list, Samsung BioLogics has been recognised globally for its potential and growth prospects,” Samsung BioLogics CEO Kim Tae-han said in a statement.

“We will continue to innovate and expand into global markets to become the world’s top biopharmaceutical developer and manufacturer that can benefit both our clients and patients,” he said.

Topping the Future 50 list was US software maker Workday, followed by China’s Weibo in second place, ServiceNow in third, Ctrip.com International in fourth and Vipshop Holdings in fifth.

Naver, which ranked sixth, was followed by Vertex Pharmaceuticals, Netflix, SF Holdings, Salesforce, Nvidia, NetEase, Sunac China Holdings, Alibaba Group Holdings, Baidu and Tencent Holdings.

Fortune’s Future 50 ranks the global companies with the best prospects for long-term growth, having “demonstrated both steady execution and forward-looking strategic nimbleness,” according to the magazine.

Joint bid for 5G base stations

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Joint bid for 5G base stations

ASEAN+ October 23, 2018 01:00

By THE YOMIURI SHIMBUN
ASIA NEWS NETWORK
TOKYO

NEC Corp will join hands with Samsung Electronics Co to develop and sell base stations for fifth-generation, or 5G, mobile communications services, it was learned Sunday.

In the United States, 5G services have partially started, while in Japan, carriers are aiming to begin their services in some areas on a trial basis in 2019. Full-scale 5G launches are expected for 2020 at the earliest. At present, 5G services are seen using different frequency bands depending on the country.

The Japanese and South Korean companies will divide work to develop 5G base stations so that each can focus on frequency bands it is good at, informed sources said.

NEC hopes to develop products compatible with the Japanese band, according to the sources.

Japanese and US companies are pulling ahead in the race to develop 5G technologies, with Chinese makers catching up with support from the government.

NEC and Samsung will consider using their sales networks to market each other’s products around the world, the sources said.