US to Offer Loans to Attract Developing Countries to Avoid Chinese Telecommunications Equipment

The US government is working to persuade developing countries to stop using Chinese telecommunications equipment, offering financial assistance to use alternatives Washington deems safer.

The United States is prepared to offer loans and other funding, up to billions of dollars in total, to countries to purchase computer hardware from suppliers in democratic countries rather than in China, the Wall Street Journal reported citing Bonnie. Glick, the deputy administrator of the American agency. for international development, which is the spearhead of the effort.

According to the report, USAID, known for providing more than technological food assistance, will send staff to meet with politicians in developing countries in an attempt to persuade them that using telecommunications equipment from two Chinese giants, Huawei Technologies Co. and ZTE Corp. is a bad idea.

The financial aid offer represents a new tool that Washington deploys as it widens the technological cold war with China.

The Trump administration has tried to curb Chinese technological advances over what it says are concerns about espionage and business practices.

For the past two years, the United States has pressured its allies to join the United States in banning Chinese-made equipment for networks using 5G wireless technology, which promises ultra-high speeds. fast to enable driverless vehicles, more efficient factories and other innovations.

U.S. officials say Huawei and ZTE pose a threat to national security and that the Chinese government can order the two companies to spy on or carry out cyber attacks, a scenario the companies and Beijing say would never happen.

The US campaign initially focused on 5G deployments in Europe, where it has met with some success, notably in Great Britain and Poland. Other countries, notably Germany, are still debating whether to restrict or ban equipment made in China.

USAID this month signed an agreement with the Federal Communications Commission to jointly counter 5G deployments using Chinese equipment in developing countries, combining the technical and political expertise of the FCC and the agency’s network. assists approximately 10,000 employees in approximately 100 countries.

Glick said messages to developing countries will focus on two themes: Chinese equipment is vulnerable to espionage, and the loans that Chinese financial agencies such as the state-controlled Development Bank of China are offering to fund. equipment can trap them.

“There’s a lot of fine print,” Glick said. “Countries are in huge debt and China is taking control of national assets,” Glick said.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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