Modern Australian
The Times

Huawei is a test case for Australia in balancing the risks and rewards of Chinese tech

  • Written by Adam Ni, Researcher, Strategic and Defense Studies Centre, Australian National University

Chinese communications giant Huawei has hit back at detractors in the lead-up to an anticipated decision by the Australian government. The company is likely to be barred from participating in the building of Australia’s next-generation 5G mobile network because of its links to the Chinese government and military.

John Lord, Chairman of Huawei’s Australian subsidiary, in his address to the National Press Club yesterday, has called claims that the company is a national security risk “uninformed” and “plain wrong”.

Read more: Explainer: why Chinese telecoms participating in Australia's 5G network could be a problem

Huawei’s role in China’s global strategy

Lord asserts that Huawei is not controlled by the Chinese government because unlike state-owned enterprises, Huawei is privately owned. While this may be technically true, the company has an opaque history with strong links to the Chinese government and military.

In fact, government support was crucial to Huawei’s success. As one of China’s “national champions”, Huawei was nurtured through a combination of protectionist measures, cheap financing, subsidies, favourable regulations, and diplomatic support abroad.

Currently, Huawei plays an important role in China’s global strategy, including by connecting participant countries in China’s ambitious Belt and Road Initiative through building telecommunications networks.

Another concern that Lord addressed was Huawei’s obligations to assist Chinese authorities, intelligence agencies or the military under China’s national intelligence and cyber security laws. He insisted that Huawei would obey Australian law and that Chinese law has “no legitimacy outside China”.

Read more: Chinese company Huawei in limbo over proposed foreign register

Those acquainted with the Chinese Communist Party would know that it is above the law, and on occasions has acted contrary to Chinese law, including its constitution. Recent cases have demonstrated the willingness of Chinese tech giants to work with the Chinese government. This has included helping the Chinese government crack down on dissent through censorship, and spying on Chinese citizens.

Lord also made a strong argument based on Huawei’s profit motive and reputation. Huawei clearly has a commercial incentive to ensure that it does not compromise Australia’s national security, for example through working with Chinese intelligence. However, it is rather doubtful that Huawei would be able to resist demands from the Chinese government given its massive power and reach.

What does all this mean?

Huawei will almost certainly be barred from participating in the building of Australia’s next-generation information infrastructure.

Without Huawei, the 5G networks will probably be more expensive to build and of lower quality. However, this would reduce some national security risks that come with Huawei’s participation, such as cyber espionage concerns.

The real question is whether the reduced risk is worth the cost.

Read more: How China's Huawei is taking on Samsung and Apple

On a broader level, as Lord rightly points out, Australia needs to accept that:

…innovation and technological advances do not always come from traditional companies and countries.

The emergence of China as a tech giant puts into sharp focus the question of how to deal with Chinese companies with close links to the Chinese government and military.

In the future, many of China’s high-tech companies may look to operate or invest in sectors that are crucial to Australia’s national security. As shown by the Huawei case, there is a real trade-off between economic and security imperatives for Australia. How to strike the right balance is a tough question indeed.

Authors: Adam Ni, Researcher, Strategic and Defense Studies Centre, Australian National University

Read more http://theconversation.com/huawei-is-a-test-case-for-australia-in-balancing-the-risks-and-rewards-of-chinese-tech-99081

Chatswood Tutoring And Its Role In Academic Achievement

Academic success often requires more than classroom attendance alone. Students face increasing expectations as they progress through school, particu...

Why Laser Hair Removal Treatments Continue Growing In Popularity

Managing unwanted hair can become time-consuming and frustrating for many people, especially when shaving, waxing, and other temporary methods requi...

Choosing the Right Devices for a Flexible Workplace

For IT leaders managing large fleets, the device layer is where workforce productivity and security policy meet. The shift towards flexible and hybrid...

How Business Advisory Services Help Companies Achieve Sustainable Growth

Every business owner aims to build a profitable and sustainable organisation. While dedication, innovation, and hard work are important, achieving l...

Why Body Contouring Has Become A Popular Cosmetic Treatment

Many people maintain healthy lifestyles through regular exercise and balanced eating habits but still struggle with stubborn areas of fat that are dif...

How to Choose the Right POS Hardware for Your Business in Australia

A lot of Australian business owners spend weeks researching POS software but buy hardware almost as an afterthought. That's a mistake. The wrong har...

Why Material Handling Hose Is Critical for Industrial Efficiency

A high-performance material handling hose is an essential component in industries that transport abrasive, dry, or bulk materials on a daily basis...

How to Choose the Right Lawyer in Melbourne for Your Situation

Choosing legal support can feel difficult, especially when the stakes are personal or business-related. The right lawyer in Melbourne should underst...

Hoteliers Look to Clever Value Adds to Increase Revenue

The Australian hospitality industry is still in recovery mode after a notoriously rough patch in recent years. While there has been a post-COVID tra...

Moving to Queensland? Here’s How to Prep Your Car for the Big Move North

There’s no sign of the northern migration slowing down, with thousands of southerners fleeing from chaotic lifestyles and cooler climates for a brig...

Diesel Shortage to Impact Trades and Contractors

Strait of Hormuz blockage affecting all major parts of trades and construction Trades and construction across residential, commercial and industria...

Why Holiday Home Owners Turn to Rental Management Agents

The Allure — and the Reality — of Renting Out Your Property Owning a holiday home is a dream for many Australians. Whether it's a beachside sha...

Why Finding Reliable Doctors In Bundoora Is Important For Long-Term Health

Access to quality healthcare plays an important role in maintaining overall wellbeing and managing health concerns early. Trusted Doctors in Bundoor...

Understanding the Different Types of Car Services: Minor vs Major

When it comes to car maintenance, one of the most important things every vehicle owner should understand is the difference between a minor and a maj...

How Superannuation and TPD Insurance Work Together

Superannuation is an essential part of financial planning in Australia. It is designed to provide individuals with income during retirement, helping...

Tiny Towns funding granted for Mt Hotham and Mt Buller upgrades

Alpine Resorts Victoria (ARV) has welcomed funding support from the Victorian Government’s  Tiny Towns Fund, with both Mt Hotham and Mt Buller se...

Locksmith Services: Why Professional Security Solutions Matter More Than Ever

Security is a critical concern for homeowners, businesses, and vehicle owners alike. Whether it involves protecting a property, replacing damaged lo...

Why Tooth Fillings Are Important For Protecting Damaged Teeth

Cavities and minor tooth damage are common dental problems that can worsen if left untreated. Professional tooth fillings help restore damaged teeth, ...