US boosts rivals of blackballed Huawei

Nokia and Ericsson may benefit

The U.S. is planning to use a new agency to make sure developing countries and businesses have the chance to purchase telecommunications equipment from suppliers other than China’s Huawei Technologies and ZTE Corp.

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The U.S. International Development Finance Corporation, which was created in October 2018 and aims to “address development challenges and foreign policy priorities,” will use a portion of its $60 billion budget to promote the effort.

“The U.S. is very focused on ensuring there’s a viable alternative to Huawei and ZTE,” Development Finance CEO Adam Boehler told Bloomberg. “We don’t want to be out there saying no. We want to be out there saying yes.”

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Bloomberg says the plans will potentially give Scandinavian firms Ericcson and Nokia a boost. Huawei did not immediately respond to FOX Business’ request for comment.

The Chinese firm recorded more than $100 billion in sales last year despite U.S. accusations of spying, which the company has denied.

On Tuesday, Huawei announced it will move its U.S. research center to Canada because of American sanctions on the company.

Last month, the Federal Communications Commission banned U.S. companies from using its $8.5 billion-a-year Universal Services Fund to buy equipment from Huawei and ZTE.

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A few days prior, the U.S. granted Huawei a 90-day extension for its Temporary General Licenses, which will allow carriers using Huawei equipment to continue service to customers in remote parts of the U.S.