Chinese Telecom Giant Huawei Could be Banned from 5G Auctions in Australia Over Security Concerns

After U.S. singled out Chinese telecom firm ZTE due to security concerns, Australia is considering banning Huawei from participating in its 5G auctions.

The ban is prompted by fears that China would have de facto control over the network if Huawei successfully bid for the spectrum. Huawei’s ban in the 5G bid would the latest in a series of decisions by Australia to limit the company's access to key infrastructure.

Despite being almost entirely owned by Huawei employees, the firm has not been able to shake-off assumed ties to the Chinese government, owing to the fact its Founder, Ren Zhengfei, was once an officer in the People’s Liberation Army. Reports have regularly emerged over the years tying Huawei to nefarious ambitions from the Chinese government, however these concerns have certainly intensified since President Trump assumed office in 2017.

Labor Party MP Michael Danly is the man leading the campaign against not only Huawei, but also ZTE this time around. Speaking to the Australian Parliament, Danly said Prime Minister Malcolm Turnbull should take the same approach as in 2012:

“Now he [Turnbull] and his government must resist the blandishments of commercial interests backed by apparently incompetent advice from bureaucrats who don’t understand the implications of the sale of the 5G network to state-owned enterprises or China-based companies who are effectively controlled by Beijing, and I’m talking about Huawei and ZTE.

“Whatever instructions might be issued for Australian sovereignty by Australia after the fact, it will be compromised if we sell the construction of our new central communications 5G network to companies effectively controlled by an authoritarian government whose leader has recently been made dictator for life.”

According to the FT, John Lord, Chairman of Huawei’s Australian business, has rejected claims it is a puppet for the Chinese government, and highlighted the importance of the company for 4G and delivering mobile broadband across the country. “It would have huge significance for Huawei in Australia because at the moment most of our business is 4G and we are providing over 55% of Australia’s 4G requirement across the whole nation,” said Lord.

Huawei Australia has written to all federal MPs in the country to tell them the company had already increased competition and could do the same in keeping costs down in building the 5G networks.

However, the concern espoused by security agencies of the company being too close to the Chinese government and the Communist Party, in turn creating a risk of “back doors” being built into the 5G networks to give Chinese authorities access to communications seems to be pushing Australians to limit their exposure to the Chinese telecom company.

(The above story first appeared on LatestLY on Jun 26, 2018 09:36 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).