Modern Australian
Men's Weekly

.

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

Engineered Timber Floors Melbourne: A Refined Flooring Choice For Modern Homes

Flooring decisions influence both the appearance and performance of a home for decades. As homeowners seek materials that balance natural beauty wit...

Whiteboard Systems Supporting Clear Thinking and Visual Planning

Effective communication often starts with making ideas visible. A whiteboard provides a clean, flexible surface where thoughts can be organised, share...

BMW Used Cars and the Appeal of Driving German Engineering

For drivers who value performance, comfort, and refined design, BMW used cars Melbourne offer an attractive way to experience premium motoring without...

Why Automatic Gates Melbourne are A Smarter Property Access

Security and convenience have become defining features of modern properties, and automatic gates Melbourne are increasingly seen as a practical sol...

The Importance Of Structured Commercial Office Cleaning In Busy Office Environments

Office spaces are dynamic environments where people collaborate, meet clients, and spend a significant portion of their day. Maintaining cleanliness...

Single Tooth Dental Implant for Natural Tooth Replacement and Lasting Stability

Losing a single tooth can have a noticeable impact on comfort, appearance, and confidence, which is why a Single Tooth Dental Implant is considered...

When Grief Doesn’t Follow a Timeline

Grief rarely moves in a straight line. It doesn’t follow stages neatly, and it doesn’t respond well to pressure — especially the quiet pressure ...

Steel Plate And Its Role In Modern Construction And Manufacturing

A steel plate is one of those materials that quietly holds the modern world together. It does not demand attention, yet it supports bridges, buildin...

Understanding Fat Transfer to the Breast: What to Know Before Considering the Procedure

Surgical options for breast enhancement have evolved over time, offering different approaches depending on a person’s goals and body type. One opt...

What to Do When Your Car’s Side Window Is Broken

A shattered side window is more than an inconvenience. Whether caused by a break-in, road debris, or accidental impact, it leaves your vehicle exposed...

Shopify Web Development and Shopify Website Development for Scalable Online Stores

Choosing the right platform is a crucial decision for any online business, and Shopify web development has become a popular choice for brands that ...

How a Burleigh Heads Plumber Tests for Pipe Leaks

Pipe leaks can be deceptively difficult to spot. Some announce themselves with a steady drip under the sink, but many develop quietly behind walls, ...

What Local Businesses Should Expect from IT Services in Melbourne?

If you run a Melbourne business with roughly 7–100 staff, you have probably noticed something over the last couple of years. The IT problems got m...

How Professional Cleaning Improves Indoor Air Quality

Indoor air quality (IAQ) plays a crucial role in our health, comfort, and overall wellbeing. Australians spend nearly 90% of their time indoors-at hom...

Solar and Solar Battery Systems: Powering Smarter Homes in Victoria

As energy prices continue to rise and sustainability becomes a priority for Australian homeowners, more families are investing in Solar and Solar Ba...

Plumbing Emergency Melbourne: What to Do When Every Minute Counts

A sudden plumbing issue can quickly turn into a major disaster if not handled promptly. From burst pipes and overflowing toilets to leaking gas line...

Why Older Melbourne Homes Require Detailed Building & Pest Inspections

Older homes make up a large part of Melbourne’s housing stock. Victorian terraces, Edwardian houses, Californian bungalows, and post-war brick hom...

7 Essential Tips for Choosing Reliable Moving Services in Perth

Moving to a new home or office can be exciting, but it also comes with stress, planning, and plenty of decisions. One of the most important choices yo...