US to tap US$60 billion war chest in boon for Huawei and ZTE rivals
- The new International Development Finance Corporation will use funds to help developing countries and businesses buy equipment from other companies
- DFC chief executive Adam Boehler says US is ‘very focused’ on ensuring there are viable alternatives to Chinese telecoms firms
The US has been warning other countries not to buy telecommunications gear from China’s Huawei Technologies and ZTE Corp. The government will soon put real money behind the effort.
A new agency, called the US International Development Finance Corporation, plans to tap some of its US$60 billion budget to help developing countries and businesses purchase equipment from other companies.
“The US is very focused on ensuring there’s a viable alternative to Huawei and ZTE. We don’t want to be out there saying no. We want to be out there saying yes,” Adam Boehler, the first chief executive officer of the DFC, said in a recent interview.
He declined to discuss specific company talks or how the money would be spent. However, the plans would be a welcome boost for Sweden’s Ericsson and Finland’s Nokia, which have struggled to compete with Huawei and ZTE equipment that is often cheaper and at least as capable.
The US could bankroll Huawei alternatives through loans or loan guarantees to developing nations and companies, or even by acquiring minority stakes in emerging makers of competing gear.
