HUAWEI Technologies unveiled an open lab for next-generation 5G wireless network in South Korea on Thursday, but kept the launch low-key given its recent blacklisting by the United States, a key security ally of South Korea.

The Shenzhen-based tech giant, the world’s top producer of telecom equipment, said it planned to invest about US$5 million in the lab in Junggu District of Seoul. It did not provide any more details on the location and did not invite media to the launch.

The event was, however, overshadowed by the U.S. decision earlier this month to ban American tech and telecom firms from doing business with Huawei. The United States has also been urging its allies to bar the Chinese company from their 5G networks.

Huawei had initially considered inviting the press to the launch in South Korea, but after the U.S. ban it decided to keep the event low-key, a person with knowledge of the matter said.

“Huawei wanted to promote the launch to as many South Korean small-and-medium enterprises as possible, but it decided to keep the press out after the ban to avoid any damage to its South Korean partners in case they are shown in media,” the person said.

Huawei said the heads of South Korean enterprises attended the event, but did not disclose any names.

The move underlines Huawei’s commitment to South Korea from where it purchases components such as chips and screens.

The U.S. campaign against Huawei, and the broader U.S.-China trade war, have landed export-driven South Korea in a familiar bind, caught between its crucial security ally and biggest trading partner.

The lab in South Korea is Huawei’s first open 5G services development center in the world that will allow other companies to test their platforms, according to the company.

Currently, Huawei provides its 5G network equipment for a small South Korean carrier LG Uplus. LG Uplus has said it does not plan to remove Huawei gear, but promised to step up security checks. (SD-Agencies)