Sweden has banned Chinese telecoms groups Huawei and ZTE from its 5G network for security reasons, the Swedish telecoms regulator said on Tuesday.

The ban is in line with new legislation that took effect in January 2020 following an examination by the Swedish armed forces and security service "to ensure that the use of radio equipment in these bands does not cause harm to Sweden's security," the Swedish Post and Telecom Authority said in a statement.

Carriers relying on already installed equipment from Huawei, the world number two in mobile phones and a market leader for next generation 5G equipment, and ZTE, will also have to remove any existing installations by January 1, 2025.

The authority also said that if "central functions are dependant on staff or functions placed in foreign countries, such dependencies must be phased out".

The United States alleges Chinese firms are used to spy for Beijing -- allegations which China denies -- and has piled pressure on allies to cut Huawei from their internet infrastructure.

Britain in July banned mobile providers from using equipment made by Huawei in their new 5G networks, and gave companies in the UK until 2027 to remove Huawei equipment.

France has also placed heavy restrictions on the use of equipment by Huawei.

China's embassy in Stockholm responded to the ban by noting that "some people in Sweden have been hyping up claims that equipment from Chinese companies... poses an alleged 'national security threat'", but said these claims were not backed by "real credible evidence."

A spokesperson for the embassy called on the Swedish government to review its decision.

"We are...firmly opposed to the exclusion of specific companies from specific countries, and to the suppression of Chinese companies on groundless charges," an embassy spokesperson said in a statement.

Asked if the ban might hurt Swedish-Chinese relations and cause China to retaliate by banning Swedish telecom equipment manufacturer Ericsson, Sweden's Minister for Digital Development Anders Ygeman said that "China is and will remain an important trading partner for Sweden."

"I believe and hope that Sweden's high security demands and expansion of modern telecommunications won't mean that we will have worsened relations to China," Ygeman told news agency TT.

Tuesday's ban came as PTS announced it had approved four applications for Sweden's 5G spectrum auctions planned to start on November 10.

The four companies, all Swedish, are Hi3G Access, Net4Mobility, Telia Sweden and Teracom.

US seeks to sway Brazil on Chinese 5G with $1-bn deal
Brasilia (AFP) Oct 21, 2020 - The United States promised Brazil $1 billion in financing toward US imports Tuesday, adding a carrot to its campaign to convince the country not to use China's Huawei to develop its 5G network.

The deal includes loans, guarantees and insurance to fund Brazilian imports of US goods and services -- "especially in the telecommunications area and the important 5G modern telecommunications network," said US National Security Advisor Robert O'Brien, who presided over the signing during a visit to Brazil.

Speaking after the deal was signed, President Jair Bolsonaro reiterated his support for the re-election of his US counterpart Donald Trump, the latest shout-out from the far-right leader sometimes called the "Tropical Trump."

"God willing, I hope to attend the inauguration of the soon-to-be re-elected president of the United States," Bolsonaro said.

The United States and Brazil have cozied up under Trump and Bolsonaro, whose shared penchant for hardline policies, vitriolic rhetoric and social media have drawn comparisons.

But the 5G issue has become a potential source of strain as Brazil plans a tender next year to upgrade the mobile network in Latin America's biggest economy.

China is Brazil's top trading partner, and Huawei has emerged as the leading supplier of fast and cheap next-generation telecoms infrastructure.

The Trump administration warns that the firm is a security threat, accusing it of passing data and intelligence to the Chinese government.

The Chinese embassy in Brasilia lashed out angrily at comments to that effect by US Secretary of State Mike Pompeo and O'Brien during his visit.

"They spread lies about China in bad faith, fabricating a so-called 'Chinese threat' and attacking China's 5G technology," a spokesman said in an interview posted on the embassy's website.

The spat came on the same day Sweden banned Huawei and fellow Chinese firm ZTE from its 5G network.

It was the latest US ally to do so, amid a pressure campaign from the Trump administration to ostracize China from the world telecoms market.

Britain banned mobile providers in July from using Huawei equipment in their new 5G networks and ordered them to remove existing equipment made by the company.

France has also placed heavy restrictions on the use of Huawei equipment.

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