🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Pompeo warns allies Huawei presence complicates partnership with U.S

Published 11/02/2019, 16:34
Updated 11/02/2019, 16:35
© Reuters. A woman sits next to a salesperson at a Huawei shop in Bangkok, Thailand

By Lesley Wroughton and Gergely Szakacs

BUDAPEST (Reuters) - Secretary of State Mike Pompeo warned U.S. allies on Monday against deploying equipment from Chinese telecoms gear manufacturer Huawei on their soil, saying it would make it more difficult for Washington to "partner alongside them".

"We want to make sure we identify (to) them the opportunities and the risks of using that equipment," Pompeo told reporters during a visit to the Hungarian capital, Budapest.

Hungary is the first stop in Pompeo's trip to central Europe that also includes Slovakia and Poland, part of an effort to make up for a lack of U.S. engagement in the region that opened the door to more Chinese and Russian influence, administration officials say.

Washington is concerned about China's growing presence, in particular the expansion of Huawei Technologies, the world's biggest maker of telecoms equipment, in Hungary and Poland.

    The United States and its Western allies believe Huawei's gear could be used for espionage, and see its expansion into central Europe as a way to gain a foothold in the EU market.

    Huawei denies engaging in intelligence work for any government. It says its technologies serve 70 percent of Hungarians and that it cooperates with most telecoms providers in Hungary, including state-owned enterprises.

Pompeo's tour includes a conference on the Middle East, hosted by Poland, where Washington hopes to build a coalition against Iran.

He is also expected to voice concerns about energy ties with Moscow, and urge Hungary not to support the TurkStream pipeline, part of the Kremlin's plans to bypass Ukraine, the main transit route for Russian gas to Europe.

© Reuters. A woman sits next to a salesperson at a Huawei shop in Bangkok, Thailand

Hungary gets most of its gas from Russia and its main domestic source of electricity is the Paks nuclear power plant where Russia's Rosatom is involved in a 12.5 billion-euro ($14 billion) expansion. It is also one of the EU states that benefit most from Chinese investment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.