Economy
Costa Rica blocks Chinese firms from 5G bidding, citing 'high cybersecurity risk'
There are growing concerns in Latin America that technology and equipment supplied by China could potentially be utilized for espionage or sabotage.
![A worker in Shanghai uses a remote control system supported by Huawei's 5G technology to operate a crane in Hunan province. Rising concerns across Latin America suggest that technology and equipment provided by China might be vulnerable to potential espionage or sabotage. [AFP]](/gc4/images/2023/09/27/44246-costa_rica_5g-600_384.webp)
By Giselle Alzate |
SAN JOSÉ -- The Costa Rican government has barred Chinese companies from participating in the bidding process for 5G network development, citing concerns about "high cybersecurity risk" and its potential impact on national security.
Costa Rican President Rodrigo Chaves, in collaboration with Minister of Science and Technology Paula Bogantes, signed a decree on September 1 stipulating that countries aspiring to be 5G network providers must have embraced the principles outlined in the Budapest Convention.
The Convention, effective since July 2004, stands as the inaugural international treaty aiming to standardize legislation across nations in addressing cybercrimes and internet-related offenses.
Costa Rica is one of the signatory nations committed to this critical agreement on combatting cybercrimes. China is not.
Reports from Costa Rican media suggest that the exclusion of Chinese companies from the tender came after Chaves' visit to the United States at the end of August, during which he met with US President Joe Biden.
China a 'high-risk' provider
According to the decree, companies relying on hardware and software from countries not party to the Budapest Convention, including China, were deemed to pose a "high risk" in terms of cybersecurity.
"The use of critical network components, such as telecommunications equipment, transmission systems, switching or routing equipment, and other signal transport facilitators, is prohibited because of their substantial cybersecurity risk to 5G and advanced networks, representing a threat to national security," the decree specifies.
Numerous European countries, Canada and the United States have prohibited Chinese firms like Huawei from participating in their telecommunications networks because of the perceived risks they pose to national security and to citizens' privacy.
Costa Rica's decree raises concerns about potential "state-sponsored intrusions through the 5G supply chain."
Furthermore, it highlights the "high risk" associated with 5G network software and hardware providers being "subject to the direction of a foreign government," whose laws or practices mandate the sharing of critical information impacting Costa Rican citizens and national security.
Bogantes stated in May that the Costa Rican government anticipates that the conditions for the bidding process to award the development of 5G networks will be finalized by the end of 2023.