US-China tech fight opens new front in Ethiopia

A U.S.-backed consortium beat out one financed by China in a closely watched telecommunications auction in Ethiopia—handing Washington a victory in its push to challenge Beijing’s economic influence around the world.

The East African country said Saturday it tapped a group of telecommunications companies led by the U.K.’s Vodafone Group PLC to build a nationwide, 5G-capable wireless network. The group had won financial backing for the multibillion-dollar project from a newly created U.S. foreign-aid agency.

The agency offers low-interest loans, but the financing comes with a condition: the money won’t be used to buy telecom equipment from China’s Huawei Technologies Co. and ZTE Corp. Washington considers both a spying threat, an accusation the companies deny.