Modern Australian
Times Advertising

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

Pest Control Albury: Protecting Your Property From Hidden Damage And Health Risks

Pests rarely announce their arrival. They creep into spaces quietly, turning small, unnoticed corners into breeding grounds for bigger problems. Tha...

Why Root Canal Treatment Melbourne Is Essential For Saving Natural Teeth

Tooth pain has a way of demanding attention at the worst possible time. When the discomfort becomes persistent and intense, it often signals an infe...

How Bird Flight Diverters Help Protect Wildlife Around Power Infrastructure

Power infrastructure plays an essential role in modern life, but it can also create risks for wildlife, particularly birds moving through establishe...

What Businesses Should Look for in a Commercial Coffee Partner

Choosing a commercial coffee partner is not the same as choosing a machine. It is a broader decision that affects beverage quality, staff efficiency...

3PL Logistics Australia Driving Smarter Supply Chains And Faster Deliveries

In a world where customers expect speed almost as much as quality, logistics has become the silent heartbeat of every successful business. Behind th...

Why Professional Electrical Services Are Essential For Modern Properties

Electricity powers almost every aspect of daily life, from lighting and appliances to complex systems in homes and businesses. This makes choosing a...

What Not to Pack When Moving: The Essential Guide to Smart Packing

Moving house is one of those all-encompassing events in life and most people focus their energy on deciding what to pack. But knowing what not to pa...

From Assistance to Independence: Progression in Daily Living Skills

The ultimate goal of many support systems is to empower individuals to lead lives defined by autonomy and self-reliance. While some support requiremen...

The Cost Difference Between Early Repairs and Delayed Replacement

Automotive maintenance often involves a choice between addressing a small issue immediately or waiting until a component fails completely. When it c...

What Is a Stainless Steel Bar? Applications, Benefits, and Buying Tips

Stainless steel is one of the most widely used materials across industrial and commercial sectors, known for its strength, corrosion resistance, and...

Scholars in Developing Nations Depending on Z library

Access to books often shapes the course of study for scholars who live in regions with thin library shelves and slow supply chains. Many students wo...

6 Cheapest POS Systems in Australia (2026)

The cheapest POS systems in Australia for 2026 are POSApt, Square, Zeller, Loyverse, Epos Now, and Shopify POS (Lite). However, “cheap” does no...

The Ultimate Guide to Automating Your Weekend Yard Chores

We all look forward to the weekend as a chance to unwind after a long week of work. You probably picture yourself relaxing on the patio with a cold ...

How Ignoring Regular Car Servicing Can Lead to Costly Repairs

Owning a car gives you a sweet sense of freedom and comfort. You can go wherever you want, whenever you want. But with that freedom comes responsibili...

Someone Trips at Your Fundraiser. Now What? Understanding Public Liability for NFPs

Three months of planning. Volunteers giving up their weekends. Sponsorships chased, catering sorted, tables decorated. And then, about an hour into ...

Stainless Steel Tube: A Complete Specification Guide for Engineers, Project Managers, and Industrial Buyers

Few materials in the industrial and manufacturing world are as universally relied upon — or as frequently misspecified — as stainless steel tube...

How to Choose the Right Barber Shears Scissors for Professional Results

Since a barber is only as good as their tool, choosing the right barber shear scissor must not be taken lightly. Most barbers end up buying the first ...

Why Commercial Construction Companies Play A Critical Role In Modern Urban Development

Urban development requires highly organised planning, engineering expertise, and professional construction teams capable of delivering complex build...