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15 Jan, 2020 11:00

US govt wants to invest $1 billion to end China’s dominance in 5G

US govt wants to invest $1 billion to end China’s dominance in 5G

A group of US lawmakers have introduced a bill to subsidize companies developing 5G technology to counter China’s Huawei. It comes as Washington mounts pressure on its allies to turn away from Chinese technology.

The legislation titled ‘Utilizing Strategic Allied Telecommunications Act’ would allocate at least $750 million or up to five percent of annual auction proceeds for companies developing the next generation technology for the US mobile broadband market. Additionally, it stipulates the creation of a separate $500 million fund (Multilateral Telecommunications Security Fund) for developers of “trusted and secure” equipment around the world.

The bipartisan bill was introduced by six senators, including leaders of the Senate Select Committee on Intelligence, Chairman Richard Burr (R-NC) and Vice Chairman Mark Warner (D-VA) among others.

Also on rt.com UK may stall its own tech development if it bars Huawei from market – Chinese envoy

The draft neither directly points at particular companies nor mentions any countries. However, the authors of the measure openly say that it is aimed at deterring Chinese telecom providers such as Huawei and ZTE, which pose “unacceptable risks” to US national security due to their alleged ties to the Chinese government.

“We cannot allow Chinese state-directed telecommunications companies to surpass American competitors,” Senator Marco Rubio (R-FL), who is a member of the intelligence committee, said, adding that Washington cannot rely on “malign Chinese state-directed actors like Huawei and ZTE.”

Despite Huawei’s repeated denials of US allegations and a pledge to provide necessary data to prove that the claims are baseless, Washington has been ramping up efforts to persuade its allies to stop using Chinese equipment, especially in the rollout of 5G networks. However, the efforts have proven to be futile in some countries, while others, like the UK, remain undecided on the matter.

A US delegation went to London earlier this week to warn their British colleagues that allowing Huawei on its market would be “an act of madness.” American officials reportedly presented a “dossier” on the company, claiming that Huawei poses a national security risk.

British lawmakers are set to make the final decision on the participation of the Chinese company in the development of the super-fast networks later this year. On Tuesday, British Prime Minister Boris Johnson said that Huawei critics should come up with alternatives.

Huawei is still one of the leading global providers of 5G equipment. Last year, the tech giant announced that it had secured more than 50 commercial 5G contracts globally, with more than half signed in Europe.

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