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https://www.ft.com/content/568e45b8-c2cf-11e8-95b1-d36dfef1b89a
US, Australia and Japan push back against Chinese influence
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The US government is working to stop Chinese telecoms company Huawei from building a major internet infrastructure project in Papua New Guinea, in the latest pushback by western powers against Beijing’s growing influence in the region. James Caruso, the top US diplomat in Canberra, told the Australian Broadcasting Corporation the country was working with Japan and Australia to develop an alternative to Huawei’s plans. “We are working on a counter offer,” he said. “It’s not to say ‘don’t do business with China’. China offers are on the table — it’s up to us to be competitive.” The move follows the establishment in July of a trilateral partnership to invest in infrastructure and development projects in the so-called Indo-Pacific region, as the countries seek to check the spread of China-backed projects under its Belt and Road Initiative. Beijing has committed $6bn in aid to projects in the South Pacific over the past seven years, as it seeks to build economic and political ties in the region. PNG is the largest recipient of Chinese aid in the area — attracting $5bn in commitments — although it has only received and spent $402m.
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Huawei and Telikom PNG signed a $200m contract in 2013 for the delivery of a national broadband network (NBN), which the Shenzhen-based telecoms equipment maker said would enable the country to roll out high-speed broadband. In August, it was reported the project linking five cities, including the capital Port Moresby, via a submarine cable would be funded by Exim Bank of China. Mike Pompeo, US secretary of state, earmarked $113m in July to be spent on infrastructure in the Indo-Pacific, including on projects with an emphasis on digital connectivity and cyber security. The US would support the roll out of infrastructure through technical assistance and public-private partnerships that aimed to provide opportunities for US technology exports and enhance cyber security, he said. Australia is already taking a lead role in pushing back against Beijing’s growing influence in the region, which Canberra considers its backyard. In June it effectively blocked Huawei from building an undersea cable from Sydney to the Solomon Islands and PNG by agreeing to finance a A$136m (US$98m) rival cable managed by Australian telecoms provider Vocus. In August, Canberra banned Huawei, the world’s biggest telecoms equipment provider, from providing 5G technology to its mobile operators, citing national security concerns. It has also agreed to upgrade facilities at the Lombrum naval base on Manus Island and is reportedly in talks with PNG about establishing a joint naval base. “It is possible the PNG broadband network could become a first investment opportunity for the proposed new trilateral fund managed by the US, Australia and Japan,” said Jonathan Pryke, an analyst at the Lowy Institute, a think-tank. “But we need to see more flesh put on the bones of this partnership.”
US, Australia and Japan push back against Chinese influence
Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email licensing@ft.com to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found here.
The US government is working to stop Chinese telecoms company Huawei from building a major internet infrastructure project in Papua New Guinea, in the latest pushback by western powers against Beijing’s growing influence in the region. James Caruso, the top US diplomat in Canberra, told the Australian Broadcasting Corporation the country was working with Japan and Australia to develop an alternative to Huawei’s plans. “We are working on a counter offer,” he said. “It’s not to say ‘don’t do business with China’. China offers are on the table — it’s up to us to be competitive.” The move follows the establishment in July of a trilateral partnership to invest in infrastructure and development projects in the so-called Indo-Pacific region, as the countries seek to check the spread of China-backed projects under its Belt and Road Initiative. Beijing has committed $6bn in aid to projects in the South Pacific over the past seven years, as it seeks to build economic and political ties in the region. PNG is the largest recipient of Chinese aid in the area — attracting $5bn in commitments — although it has only received and spent $402m.
Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email licensing@ft.com to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found here.
Huawei and Telikom PNG signed a $200m contract in 2013 for the delivery of a national broadband network (NBN), which the Shenzhen-based telecoms equipment maker said would enable the country to roll out high-speed broadband. In August, it was reported the project linking five cities, including the capital Port Moresby, via a submarine cable would be funded by Exim Bank of China. Mike Pompeo, US secretary of state, earmarked $113m in July to be spent on infrastructure in the Indo-Pacific, including on projects with an emphasis on digital connectivity and cyber security. The US would support the roll out of infrastructure through technical assistance and public-private partnerships that aimed to provide opportunities for US technology exports and enhance cyber security, he said. Australia is already taking a lead role in pushing back against Beijing’s growing influence in the region, which Canberra considers its backyard. In June it effectively blocked Huawei from building an undersea cable from Sydney to the Solomon Islands and PNG by agreeing to finance a A$136m (US$98m) rival cable managed by Australian telecoms provider Vocus. In August, Canberra banned Huawei, the world’s biggest telecoms equipment provider, from providing 5G technology to its mobile operators, citing national security concerns. It has also agreed to upgrade facilities at the Lombrum naval base on Manus Island and is reportedly in talks with PNG about establishing a joint naval base. “It is possible the PNG broadband network could become a first investment opportunity for the proposed new trilateral fund managed by the US, Australia and Japan,” said Jonathan Pryke, an analyst at the Lowy Institute, a think-tank. “But we need to see more flesh put on the bones of this partnership.”
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