Beijing ‘gravely concerned’ by Coalition call on 5G ban for Huawei

The Turnbull government’s move to ban Huawei from the 5G network amid a leadership crisis has infuriated Beijing.

Huawei has been blocked from supplying equipment to Australia’s telecommunications network.

The Turnbull government’s move to ban Huawei from the 5G network on national security grounds amid a leadership crisis has infuriated Beijing and left it open to accusations of political opportunism.

A Foreign Ministry spokesman said China was “gravely concerned” at the government’s decision and accused Australia of creating “artificial obstacles” to deals between Australian and ­Chinese companies.

Australian Strategic Policy Institute head of cyber policy Fergus Hanson said the decision had global ramifications as it cast doubt on China’s participation in technology bids in other “five eyes” countries and on Britain’s decision not to block Huawei from its broadband and phone networks.

Australian authorities paid close attention to a recent British report by the body that monitors Huawei’s participation in UK networks that said “significant additional work” was needed to manage the risks to Britain’s national security.

“It’s a big decision, both for ­Chinese firms and for the broader implications, calling into question the adequacy of (the actions of) five eyes partners like the UK’s mitigation measures,” Mr Hanson said.

The ban has been welcomed by the national security community, which has long argued China’s national intelligence laws would require Chinese companies to hand over consumer data to ­Chinese authorities.

A statement released by ­Acting Home Affairs Minister Scott Morrison did not mention either Huawei or ZTE, which had been bidding to supply equipment to Australia’s 5G telecommunications networks.

Instead, it said co-operation with companies “subject to extrajudicial directions from a foreign government that conflict with Australian law” would mean Australian telecom companies were not protecting their customers from unauthorised interference.

“It’s drafted in this way it’s not a ban on China but on countries subject to extrajudicial directions. It obviously applies to all Chinese firms because of article seven on the national intelligence law,” Mr Hanson said.

With the Turnbull government hanging by a thread, Mr Hanson said the timing of the announcement was a surprise. “Somebody … used the fog of war over the political leadership to drop this huge piece of news. I think the community was expecting for it to take quite a bit longer,’’ he said.

Government sources rubbished suggestions the decision was revealed yesterday to minimise its impact on the government relationship with China and domestic scrutiny, labelling the idea as “absurd”.

China’s Foreign Ministry spokesman said “the Australian government should not find ­excuses to set up such obstacles”.

The decision is a blow to Huawei, which supplies 4G equipment to Vodafone, Optus and TPG and had hoped to supply 5G equipment to the companies.

“Huawei is a world leader in 5G, and has been providing safe, ­reliable communication technology in Australia,” a spokesman for Huawei said.

ADDITIONAL REPORTING: SUPRATIM ADHIKARI

BUSINESS P17