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The United States “Induces” Developing Countries to Abandon Chinese Equipment: Using Loans and Economic Aid as Bargaining Chips

Economic Aid as Bargaining Chips

The United States “Promotes” Developing Countries to Abandon Chinese Equipment: Using Loans and Economic Aid as Bargaining Chips

 According to the US “Wall Street Journal” website reported on October 18, the US government is trying to persuade developing

countries not to use Chinese telecommunications equipment, and to provide

economics for the use of alternative options that Washington considers “safer” assistance.

According to reports, the first to advance this work is the United States Agency for International Development. 

Bonnie Glick, the deputy administrator of the agency, said that the

United States is ready to provide loans and other financing to countries that do not buy hardware from Chinese suppliers, and the amount may be in the billions of dollars.

She said that the agency will send employees to meet with politicians and

regulators in developing countries in order to convince them that using telecommunications equipment from China’s two giants Huawei and ZTE is “a bad idea.”

According to the report, the provision of economic assistance is a new method adopted by Washington as it expands the technological cold war with China. 

The Trump administration has been trying to contain China’s technological progress, claiming there are so-called concerns about espionage and trade practices.

For two years, Washington has been lobbying its allies to work with the

United States to ban the use of Chinese-made equipment for 5G networks. This technology is expected to make driverless cars, more efficient factories and other innovations possible at super fast speeds.

The report pointed out that US activities initially focused on 5G deployment in Europe.

The report also pointed out that the United States may face greater challenges in the developing world. For example, in Africa, Chinese wireless equipment manufacturers dominate the market.

Market research firm Del Oro Group said that price-sensitive operators

have flocked to Huawei and ZTE, which together accounted for 50% to 60% of

the telecommunications market in Africa and the Middle East earlier this year.

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