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Huawei and ZTE banned from supplying 5G tech to Australia

24 August, 2018, 01:38 | Author: Janis Wilson
  • Huawei: Australia has banned us from selling 5G tech

In this July 4, 2018 photo, the Huawei logo is seen at a Huawei store at a shopping mall in Beijing.

The Chinese company works with all of Australia's major telco operators and over 50 per cent of Australians use a Huawei product for some part of their daily telecommunications needs, according to a description on the Twitter account.

For several months, reports speculated Huawei could be banned from Australia's 5G network, with commentators awaiting a final announcement, despite the company's continual denial.

It also brings Australia in line with the United States, which has restricted Huawei and compatriot ZTE Corp (000063.SZ) from its lucrative market for similar reasons. Pressure to push the companies out of the U.S. has only mounted in recent months and now, other countries are following suit.

Australia has banned Chinese telecommunications network equipment manufacturers Huawei and ZTE from supplying operators in their 5G deployments.

The ban prevents local mobile carriers in the country from purchasing 5G technology equipment from the Chinese companies.

More news: Trump announces plans to gut another climate-change initiative

"We urge the Australian government to abandon ideological prejudices and provide a fair competitive environment for Chinese companies' operations in Australia", he said. Huawei and ZTE did not immediately respond to requests for comment.

The government said Thursday that the involvement of a company "likely to be subject to extrajudicial directions from a foreign government" presented too much risk.

However, Beijing has dismissed the concerns as an "excuse" to prevent Chinese firms from winning lucrative contracts overseas.

The Australian government reportedly followed advice from security agencies on the matter, though it will no doubt come as another big blow to Huawei, which has already seen a significant deal fall through in the USA this year.

FT says Australia is the first country to explicitly prohibit local carriers from working with the companies - the USA government's ban only covers its personnel, agencies and contractors.

"Has safely & securely delivered wireless technology in Australia for close to 15 year", Huawei Australia said in its posting.

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