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07/25/2020 Source:  NIKKEI Asia
Author: Ryo Nakamura 1 min read

US dangles financial aid to anti-Huawei campaign in Asia

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Washington urges Japan and Australia’s cooperation on ‘clean’ 5G paths

US dangles financial aid to anti-Huawei campaign in Asia
Keith Krach, second to right, has played a key role in U.S. efforts to boost economic security and decouple from China. © Reuters

WASHINGTON — Washington may include financial support in its campaign against the use of Huawei Technologies equipment in 5G infrastructure, a top U.S. diplomat said, as the U.S. looks to bring developing Asian countries in line with its policy.

Huawei is attractive to developing countries with limited resources because its products and services are usually cheaper than alternatives produced by Ericsson and Nokia. But those prices come with a hidden cost, Keith Krach, U.S. undersecretary of state for economic growth, energy and the environment, told a roundtable discussion with Nikkei and other Japanese media.

“Huawei is the backbone of the CCP’s surveillance state,” he said, referring to the Communist Party. “That’s why any country that includes equipment from either Huawei or ZTE in its 5G system is vulnerable to theft and surveillance at any time.”

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