China: U.S. trying to block tech development

BEIJING -- China's government Monday accused the United States of trying to block its industrial development by alleging Chinese mobile network gear poses a cybersecurity threat to countries rolling out new internet systems.

And in a potential blow to the U.S.'s effort to rally its allies on the issue, British media reported the country's intelligence agencies have found it's possible to limit the security risks of using Chinese equipment in so-called 5G networks.

The Trump administration has been putting pressure on allies to shun networks supplied by Huawei Technologies, threatening the company's access to markets for next-generation wireless gear.

The company, the biggest global maker of switching gear for phone and internet companies, denies accusations it facilitates Chinese spying and said it would reject any government demands to disclose confidential information about foreign customers.

The U.S. government is trying to "fabricate an excuse for suppressing the legitimate development" of Chinese enterprises, said the spokesman for the Chinese foreign ministry, Geng Shuang. He accused the United States of using "political means" to interfere in economic activity, "which is hypocritical, immoral and unfair bullying."

U.S. Vice President Mike Pence, speaking this weekend in Germany, urged European allies to take seriously "the threat" he said was posed by Huawei as they look for partners to build the new 5G mobile networks.

The 5G technology is meant to vastly expand the reach of networks to support internet-linked medical equipment, factory machines, self-driving vehicles and other devices. That makes it more politically sensitive and raises the potential cost of security failures.

Pence said Huawei and other Chinese telecom equipment makers provide Beijing with "access to any data that touches their network or equipment." He appealed to European governments to "reject any enterprise that would compromise the integrity of our communications technology or our national security systems."

In what could amount to a turning point for the U.S. effort to isolate Huawei, Britain's National Cyber Security Centre has found the risk of using its networks is manageable, according to the Financial Times and several other British media outlets.

The reports cited anonymous sources as saying there are ways to limit cybersecurity risks, and the U.K.'s decision would carry weight with European allies who are also evaluating the safety of their networks.