Australia has banned Huawei Technologies Co. and ZTE Corp. from taking part in the country’s 5G wireless technology development efforts over national security concerns. Security agencies remain skeptical about connections between Huawei and the Chinese government and believe they might not be able to prevent their 5G network from being tampered with. Australia had previously banned Huawei from a project related to its broadband network.
Telecom companies and equipment suppliers will now be subject to new regulations in Australia. ZTE was also banned from being involved in the 5G project. Huawei and ZTE have both disputed claims of security risks related to their products and services. The Chinese government is unhappy with Australia’s decision and asked the nation to drop prejudices and pave the way for fair competition.
Apart from Australia, Huawei and ZTE have been probed in other countries such as the US and UK on grounds of risk to national security
Apart from Australia, Huawei and ZTE have been probed in other countries such as the US and UK on grounds of risk to national security. There have been reports of Chinese firms facing scrutiny due to their associations with the Chinese government. In the US, the Trump administration has raised concerns over the involvement of Chinese firms in intellectual property theft and has blocked deals that involved Chinese companies.
ZTE was banned by the US government earlier this year from doing business with American companies. The prohibition, handed out for violation of trade sanctions, crippled the company’s operations and was reversed only after the company agreed to hefty penalties.
Last month, a government panel in the UK raised national security concerns due to flaws in Huawei’s engineering that could put the country’s telecom networks under risk. Prior to this, concerns over Huawei were raised in Canada where officials asked the government to monitor the company’s operations in a manner similar to the US. In Europe too, there are said to be apprehensions in general about Chinese companies and their ties to the government of China.
Related: Security threat: Huawei under scanner as trade war concerns heighten
Most Popular
What to look for when CVS Health (CVS) reports Q3 earnings
Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain
eBay (EBAY): A few factors that helped drive growth in Q3 2024
Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,
CVX Earnings: Chevron reports lower revenue and profit for Q3 2024
Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to