Read The Times Australia

Daily Bulletin

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
The Conversation

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

Business News

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Choosing an ELISA Format That Matches Your Target

A colorimetric ELISA ends with a plate that has developed color, and the instinct is to read more ...

Why Accurate Measurements Matter When Ordering Flatpack Cabinets

Ordering flatpack cabinets can make a renovation or storage project more manageable, but the proce...

How Long Does Interstate Freight Take in Australia?

If you have ever arranged for stock, equipment or materials to travel from one Australian state to a...

How AEC Firms Can Scale Faster Without Sacrificing Project Quality

Growth presents a fundamental dilemma for architecture, engineering, and construction firms: expan...

What Makes an Aesthetic Clinic Worth Going Back To?

Trying an aesthetic clinic for the first time can feel like a bit of a gamble. You can read review...

Elevate Your Morning Routine with Cafe-Style Coffee at Home with the Right Coffee Machine

There's something magical about that first sip of coffee in the morning. It’s more than just a bev...

Top Garment Steamers for Busy Professionals in Australia

The gap between garment steamers built for a quick touch-up and ones built to keep pace with a wor...

Correct Sleeping Posture to Minimize Back Strain

Most people don’t pay much attention to how they sleep until they start waking up with a stiff bac...

Why Product Longevity Matters for Sustainable Australian Buildings

Sustainability in building design is often associated with recycled materials, renewable resources a...