"Block Huawei" US Senate Introduces Bill to Support Domestic Companies for 5G Development

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] A bipartisan bill to provide subsidies worth about 1 trillion won to U.S. companies to develop and strengthen 5G technology in order to counter Chinese equipment maker Huawei was introduced in the U.S. Senate, CNBC reported on the 14th (local time).

According to the report, Republican Senator Richard Burr, chairman of the Senate Intelligence Committee, and Democratic Senator Mark Warner, ranking member of the committee, introduced the "Strategic Alliance Communications Utilization Act" on the same day, which would provide a total of $1.25 billion (approximately 1.45 trillion won) to U.S. companies.

The bill requires at least $750 million to be invested in U.S. companies developing mobile communication technologies such as 5G, with funding to be raised through wireless frequency auctions. Additionally, a separate fund worth $500 million is to be established to support mobile communication equipment manufacturers.

Although the bill does not specifically name any Chinese company, it is interpreted as targeting Huawei, a telecommunications equipment manufacturer. The U.S. government has pressured allies and partner countries to exclude Huawei, citing concerns that Huawei's equipment could be used for espionage on behalf of Chinese authorities.

Recently, regarding the construction of 5G networks, the U.S. has pressured the United Kingdom not to adopt Huawei equipment. In response, the UK government is considering banning the use of Huawei's core equipment while deliberating whether to allow non-core equipment. A final decision is expected to be made within this month.

This content was produced with the assistance of AI translation services.