5G decision may torpedo trade deal with US, says Pence

‘[Utilising Huawei technology] remains a real issue between our two countries’

MIKE PENCE, the US vicepresident, has warned that the UK-US free trade deal could be off if Britain allows Huawei to build part of its 5G network.

Asked if the Huawei decision would be a “dealbreaker” for a trade agreement during an interview with CNBC, Mr Pence said: “We’ll see.”

The comments mark an escalation in the public blow back from Washington over last week’s decision. It follows a Financial Times report that Mr Trump was “apoplectic” during a recent phone call with Boris Johnson over the issue.

America has been lobbying Britain for months not to work with Huawei, a Chinese telecoms giant that gets government funding and is, the US fears, effectively an arm of the Chinese state.

The Prime Minister has agreed to let the firm help construct part of the 5G network but insisted it would not have access to sensitive areas and would not undermine British security.

Mr Pence said: “We are profoundly disappointed because ... in September I met with Prime Minister Johnson. I told him the moment the UK was out of Brexit we were willing to begin to negotiate a free trade arrangement with the UK.

“We just don’t believe that utilising the assets, the technology of Huawei is consistent with the security or privacy interests of the UK, of the United States and it remains a real issue between our two countries.” The row appears to have no end in sight, with Mr Johnson apparently full-square behind his choice and the US determined to stop Huawei’s worldwide expansion.

The Washington stance is part of a deliberate strategy to be more assertive towards China amid what it sees as the re-emergence of great power rivalries.

The issue could flare up when Mr Johnson visits Washington, which he is yet to do as Prime Minister. A trip is expected at the end of this month.