US to offer loans to convince developing nations to avoid Chinese telecom hardware: Report

The United States government is reportedly looking to persuade developing countries by offering financial assistance to avoid China and start buying telecommunications hardware from countries that are deemed safer. According to a report in the Wall Street Journal, the United States Agency for International Development (USAID) is leading the effort to convince developing nations to shun Chinese telecom hardware and use alternatives available in what Washington describes as "democratic" countries. 

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'Embrace safer telecom hardware' 

USAID deputy administrator Bonnie Glick told the American newspaper that the United States is ready to offer loans and other financial assistance to the countries who are willing to move away from Chinese telecom equipment and embrace safer hardware from free countries. According to the report, the agency will send officials to the developing countries to meet politicians and regulators and convince them to stop buying equipment from Chinese firms, particularly from Huawei and ZTE Corp. 

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Glick said that Washington is ready to spend billions of dollars through USAID in order to persuade the developing world to stop buying technology from China. USAID, which primarily provides foreign aid for food and education programmes, will now for the first time also focus on technology assistance to be in line with the Trump administration's policy to curb Chinese technological advances. 

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Trump administration has been trying to corner China's technological advances by restricting Chinese companies from doing business in the United States and in other ally nations. Washington has already restricted US companies from doing trade with Huawei by imposing sanctions. US firms now need to seek licenses in order to sell equipment to Huawei. The United States is also lobbying in ally nations to convince them not to buy Chinese-made equipment in setting up 5G technology. 

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