Huawei Ban Row Escalates

6:45 AM -- The decision by the Australian government to bar Huawei Technologies Co. Ltd. from providing network systems for the A$36 billion (US$37.6 billion) national next-generation broadband network (NBN) because of security concerns has resulted in a war of words between Australia and China over protectionism. (See Huawei Barred From NBN and Australia's (Safe) Bet Against Huawei.)

Australia's Prime Minister Julia Gillard has confirmed that Huawei will not be allowed to participate in the NBN for (unspecified) security reasons that are in the "national interest," and, reports Reuters, went on to highlight China's rules on overseas investments in communications networks.

See the Reuters story for the details on who said what about the various decisions and prevailing attitudes, but it certainly looks like Huawei has become the pawn in what could escalate into a damaging trade spat between Australia and China.

— Ray Le Maistre, International Managing Editor, Light Reading

COMMENTS Add Comment
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Soupafly 12/5/2012 | 5:37:41 PM
re: Huawei Ban Row Escalates

Given that Huawei has a entire team in each country who are exclusively devoted to local party liaison and management of information, it would not suprise me if someone on there side had escalated the dispute using there political contacts.

As craig and sigint pointed out. The aussies have the right to select and exclude whoever they link to bid& build the NBN. If china & huawei dont like it, thats tough luck.

If the CCP makes a decision you dont like & your govt complains... see how far that gets you! Even if your their biggest trade partner - they are reluctant to budge. 

And the above by the way is based on fact. I used to work for them. 


MeerkatMac 12/5/2012 | 5:37:40 PM
re: Huawei Ban Row Escalates

It's about time!  China habitually steals others intellectual property, funds spying operations by their civilian employees, and routinely engages in espionage.  Good for the Australian Gov. for standing up to them!

Flook 12/5/2012 | 5:37:38 PM
re: Huawei Ban Row Escalates

I don't think such disputes help either party, but possibly there are larger issues involving China-Australia trade in general. In any event, if such disputes escalate, Australia will come out on the losing end since China's GDP is projected to surpass the US in 2015.


Soupafly 12/5/2012 | 5:37:31 PM
re: Huawei Ban Row Escalates

@ flook;  A post that would make a CCP shill green with envy... I wonder if you work for Huawei? Your post makes no tangible point and generalises about the future.

The reality is: The Australian govt took a decision on a strategic network asset, and was open with the vendor that for whatever reason they would not be selected. Better that than the vendor spends millions of $$ on bid prep, submission and hospitality and then lose - with a loaded deck from the start.

This biggest single reason thsi is an issue is because Huawei is more than just a vendor, in it home country, it is THE national technology flag bearer for china, and that fact has helped to elevate this into a political row. 

and finally..... China needs Australia just as much as it needs china. Who do you think is 1 of the most imporant suppliers of critical raw materials to china?

So please, if you havent checked your facts, be quiet and sit down.

Flook 12/5/2012 | 5:37:22 PM
re: Huawei Ban Row Escalates

Wow, that's the first time anyone has called me shill--I personally don't like to get personal in such posts, but feel free to say what you want. For the record, I don't care if we're talking about Huawei in China or Cisco in USA, I don't have any relationship with either and derive no benefit from their success.  I believe I made the point that hopefully this dispute would be settled amicably and perhaps there was more than just this one issue involved. I doubt whether you or I know all the "facts" here...


Now regarding my macro point, I was only accepting what the "experts" say--that China is on track to be the largest economy (some say as early as 2015). So do you really think that if relations between China and Australia get really bad, Australia will come out on top?

Hey, perhaps you do believe that, but then, as they say, you have a right to your own opinion but not your own "facts."

[email protected] 12/5/2012 | 5:36:44 PM
re: Huawei Ban Row Escalates

@ soupfly

>Who do you think is 1 of the most imporant suppliers of critical raw materials to china?

#1 most important supplier of critical raw material to China is Russia.

But also China can select raw material supplier all over the world easily. So, Australia is the most loosing party in this unwise decision.

To be clearly understood, I'm Huawei employee (15 years of work). 

Soupafly 12/5/2012 | 5:36:38 PM
re: Huawei Ban Row Escalates

@ ashalaginov; If you actually read my comment I stated that Australia was 1 of most important suppliers of materials to china. Nowhere did I say they were the No.1 supplier of raw materials. 

Given Russia vast landmass and its raw materials & mineral wealth, and the fact that it shares significant border lands with china and its former USSR ties to the "xxstans" (uzbek, turkmen, kryg, etc) and the strategicically important and significant Kazakstan region (strategic = Worlds largest landlocked country + bigger than western EU footprint + many of the nomadic tribe populations share strong affiliations to the indigenous chinese ethnic tribes + border shared with china & russia.

You should be aware of the information above. If not then please feel free to verify it. Its 2 clicks or less away.

@ flook; My post wasnt personal. I call it as I see it. You claim your not, I say you post reads like you are. We have a difference of opinion and thats cool too. Thanks for posting that I should feel free to post what I want. In my country thats the norm. Except perhaps if your in china where dissident voices are not widely respected or allowed.

Agreed on not knowing the facts. Thats exactly what I stated in a previous post. Quote: "was open with the vendor that for whatever reason they would not be selected."

Your macro point is irrelevant. Experts say & predict allot of things. Only a few of them come true. Your language choice centre's around dominance and conflict. e.g: "Come out on top",  But for me this is a dispute between a company and a NGO asset company, who has taken advice. Not the wider trade war you paint or describe.

Soupafly 12/5/2012 | 5:36:36 PM
re: Huawei Ban Row Escalates

@ ashalaginov;  Read what I typed, not what you think I typed or thought I might have. You simply cannot read.

Am not going to waste my time on detailed posting to educate you on what you should know about your own country and its affiliate states. With the greatest of respect, this is obvious ground zero stuff that should be 101 materials to you. I can only laugh that its not.

I too have visisted these countries, so we share that - at least.

The "stans" comment was to cover a number of countries, with this designation. Afghani, Uzbeki, Turkmeni, Kazak, Krgy...etc.

It wasnt referring to any nomadic tribe. Thats your assumption, not mine.

The nomadic tribes comment can be found here; http://en.wikipedia.org/wiki/K... (Paragraph 2. The 1st fifteen words. lol!

This will be my last post on this topic, as I have things to do and posting links to basic info & facts and arguing about words I didnt use, is a waste of our collective time.

[email protected] 12/5/2012 | 5:36:36 PM
re: Huawei Ban Row Escalates

Soupafly wrote:

> Nowhere did I say they were the No.1 supplier of raw materials.

Check your first post at 2 clicks. You did.

> ( many of the nomadic tribe populations share strong affiliations to the indigenous chinese ethnic tribes

Rather creative. Especially about "nomadic tribe populations". :)

No wonder, from where you picked up your imagination about China :)

Please be informed that I'm Russian, and have been many times in Kazakhstan, and other Middle Asia "stans" (by the way "stan" in turk languages means "country"). No any "nomadic tribe" lives there.

[email protected] 12/5/2012 | 5:36:35 PM
re: Huawei Ban Row Escalates

You typed (I used copy-paste from your first post):

> Who do you think is 1 of the most imporant suppliers of critical raw materials to china?


Yes, you should'n waste your precious time to educate others. Educate yourself first.

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