U.S. WARNS SPAIN OVER HUAWEI CONTRACTS

The United States has issued an ultimatum to Spain, giving the government until the end of the month to terminate more than €12.3 million in contracts awarded to Huawei for servers and consulting services for the Ministry of the Interior, according to ABC. Washington has warned that failure to end the deal will result in restrictions on the exchange of classified information crucial for Western security cooperation.

U.S. Director of National Intelligence Tulsi Gabbard has opened a formal investigation into the contracts over potential ties to Chinese intelligence. In a letter to Spanish authorities, Gabbard stated that if the contracts remain, intelligence sharing will be significantly reduced, affecting cooperation in counterterrorism, organized crime, and other security threats.

Concerns stem from Chinese laws that could compel Huawei to hand over stored data to Beijing. A U.S.-China Economic and Security Review Commission bulletin warned that sensitive wiretaps could end up in Huawei-managed systems if Spain maintains the relationship. Lawmakers Tom Cotton and Rick Crawford have also called for a review of U.S.-Spain intelligence cooperation.

The Spanish government argues Huawei’s bid was the most affordable and legally compliant but admits the tender lacked certain security clauses. The decision has drawn scrutiny given Spain’s softer stance toward China compared to other EU partners, its pursuit of Chinese investment, and the sensitive nature of the data involved.

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