Exclusive-Washington presses Syria to shift from Chinese telecom systems

By Feras DalateyDAMASCUS, Feb 26 (Reuters) - The United States has warned Syria against relying on Chinese technology in its telecommunications sector, arguing it conflicts with U.S. interests and threatens U.S. national security, according to three sources familiar with the matter.The message was conveyed during an unreported meeting between a U.S. State Department team and Syrian Communications Minister Abdulsalam Haykal in San Francisco on Tuesday.Washington has been coordinating closely with Damascus since 2024, when Syria's now President Ahmed al-Sharaa ousted longtime leader Bashar al-Assad, who had a strategic partnership with China.Syria is exploring the possibility of procuring Chinese technology to support its telecommunications towers and the infrastructure of local internet service providers, according to a Syrian businessman involved in the procurement talks."The U.S. side asked for clarity on the ministry’s plans regarding Chinese telecom equipment," said another source briefed on the talks.SYRIAN OFFICIALS CITE US EXPORT CONTROLS AS TELECOMS BARRIERSyria is open to partnering with US firms but the matter was urgent and export controls and "over-compliance" remained an issue, according to person familiar with the meeting in San Francisco.A U.S. diplomat familiar with the discussions told Reuters that the U.S. State Department "clearly urged Syrians to use American technology or technology from allied countries in the telecoms sector."It was unclear whether the United States pledged financial or logistical support to Syria to do so.Responding to Reuters questions, a U.S. State Department spokesperson said: "We urge countries to prioritize national security and privacy over lower-priced equipment and services in all critical infrastructure procurement. If it seems too good to be true, it probably is."The spokesperson added that Chinese intelligence and security services "can legally compel Chinese citizens and companies to share sensitive data or grant unauthorized access to their customers' systems" and promises by Chinese companies to protect customers' privacy were "entirely inconsistent with China's own laws and well-established practices."China has repeatedly rejected allegations of it using technology for spying purposes.The Syrian Ministry of telecommunications told Reuters any decisions related to equipment and infrastructure are made "in accordance with national technical and security standards, ensuring data protection and service continuity."The ministry said it is also prioritizing the diversification of partnerships and technology sources to serve the national interest.Syria's telecom infrastructure has relied heavily on Chinese technology due to U.S. sanctions imposed on successive Assad governments over the civil war that grew from a crackdown on anti-government protests in 2011.Huawei technology accounts for more than 50% of the infrastructure of Syriatel and MTN, the country's only telecom operators, according to a senior source at one of the companies and documents reviewed by Reuters. Huawei did not immediately respond to a request for comment.Syria is seeking to develop its private telecommunications sector, devastated by 14 years of war, by attracting foreign investment.In early February, Saudi Arabia's largest telecom operator, STC, announced it would invest $800 million to "strengthen telecommunications infrastructure and connect Syria regionally and internationally through a fibre-optic network extending over 4,500 kilometres."The ministry of telecommunications says that U.S. restrictions "hinder the availability of many American technologies and services in the Syrian market", emphasizing that it welcomes expanding cooperation with U.S. companies when these restrictions are lifted.Syria has inadequate telecommunications infrastructure, with network coverage weak outside city centres and connection speeds in many areas barely exceeding a few kilobits per second.(Additional reporting by Timour Azhari; Writing by Feras Dalatey; Editing by Philippa Fletcher)