Move FM Australian News

CANBERRA, Australia – For years now, one of the world’s largest telecom services and equipment provider, Huawei has battled accusations related to cyber espionage.

While the Chinese telecom giant has long disputed the accusations of maintaining close links to the Chinese government – it has been largely kept out out the U.S. over security concerns. 

On Thursday, taking cue from the U.S. and acting on the cybersecurity concerns it has previously raised against the company – Australia decided to ban Huawei from building 5G wireless network in the country. 

Making the announcement in a statement, the Australian federal government said that there were security risks with companies beholden to foreign governments.

The government statement explained, “The involvement of vendors who are likely to be subject to extrajudicial directions from a foreign government that conflict with Australian law pose a security risk.”

Adding that this could mean the country’s wireless carriers are unable “to adequately protect a 5G network from unauthorized access or interference.”

Further, the country’s Acting Home Affairs Minister Scott Morrison and Communications Minister Mitch Fifield noted that there was “no combination of technical security controls that sufficiently mitigate the risks.”

While the Australian government announcement did not mention China or Huawei by name – telecom giant Huawei confirmed the ban in a statement.

Huawei said that the Australian government had barred it from providing equipment to support the country’s new telecommunications networks.

The company also revealed that another Chinese company, ZTE too faced the ban on Thursday. 

In a statement on Twitter, Huawei labelled the decision as an “extremely disappointing result for consumers.”

Huawei Australia wrote, “We have been informed by the Govt that Huawei & ZTE have been banned from providing 5G technology to Australia. This is an extremely disappointing result for consumers. Huawei is a world leader in 5G. Has safely & securely delivered wireless technology in Aust for close to 15 yrs.”

The decision comes after Huawei recently addressed a letter to Australian lawmakers, in which the company formally reiterated that concerns over its gear being used by the Chinese government for spying were “ill-informed and not based on facts.”

Previously, Huawei has insisted that it is a private company owned by employees with no other shareholders. 

Meanwhile, similar troubles have continued to haunt ZTE – with accusations mainly stemming from the fact that a Chinese state-owned corporation – Shenzhen Zhongxingxin Telecommunications Equipment is its controlling shareholder.

However, ZTE, which has so far neither confirmed nor commented on the ban down under, has repeatedly  denied that its products pose a security risk.

Acting on a Congressional report released six years back, which had first labelled Huawei and ZTE as security threats – the U.S., earlier this month banned government agencies and contractors from using technology by either of these companies.

5G future denied!

Over the last few years, the focus of the world’s most brilliant tech minds has shifted to delivering futuristic technologies – with one specifically captivating their fancy – Self-driving vehicles.

Tech giants across the world are currently engaged in a battle to the finish and while some have reached there, the results have not been very promising. 

As tech giants battle it out to pioneer the future of the industry – global mobile carriers are simultaneously playing their part by inventing wireless technology that would be required to power futuristic technologies such as self-driving cars.

Efforts are on by all major players to build infrastructure using fifth-generation, or 5G, wireless technology – which promises to enable ultrafast communications necessary for the tech of the future. 

Huawei has led such efforts in recent years and is today leading the global race for the development and deliver of 5G wireless – for both, strategic and commercial use.

Meanwhile, China’s second largest telecom gear maker ZTE Corp., which is also in a domineering position in the global 5G roll out race.  

Yet, being blocked from providing 5G technology for Australia’s wireless networks is set to cause not only financial but also reputational damages for both the companies – that will now have to devise plans to fill the void to meet forecasts and remain relevant. 

However, being the world’s largest makers of telecom gear and smartphones – both the Chinese firms are set to retain market standing since they already sell equipment to major Australian telecom carriers. 

Two of Australia’s biggest mobile phone carriers, Vodafone and Optus currently have supplier relationships with Huawei and had previously tested the company’s 5G equipment.

Challenging China’s power consolidation 

Meanwhile, reports pointed out that the decision by Canberra capped its years long dispute with Chinese firms over security issues and came despite Huawei’s repeated denials of links to the Chinese government. 

Both Huawei and ZTE have faced intense scrutiny in some countries over its alleged close links – with the U.S. and Australia taking action against the firms in recent years. 

In 2012, citing cybersecurity concerns, the country blocked Huawei from bidding for contracts on Australia’s ambitious national broadband project.

Further, recent intensifying tensions between Australia and China are believed to have played a role in the decision that is set to cost the two top Chinese telecom firms potentially lucractive business.

Australia has repeatedly raised concerns over China’s silent consolidation of power and growing economic clout in the Asia Pacific.

The Xi Jinping-led nation has faced international criticism over its use of military might to claim the disputed and resource-rich South China Sea waterways.

Further, China’s strategy to expand its influence and power in the region, by offering economy aid, enhancing trade and investment ties and extending loans to impoverished nations has spooked some APAC nations, including Australia.

Australia and other nations have voiced fears that countries that have, over the years, become dependent on Beijing’s economic backing might get trapped with unsustainable debts – inadvertently handing China the economic superiority and power to get away largely unchallenged on everything from trade imbalances to even territorial disputes.

However, Australia has not just raised concerns, but has also made efforts to refocus its foreign aid programmes across the Pacific.

In June this year, the country’s government announced that it would negotiate a security treaty with Vanuatu.

Further, Australia also decided to fund and build an underseas communications cable to the Solomon Islands and Papua New Guinea.