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NBN ban on Huawei to stay: George Brandis

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Huawei: Still banned from the NBN.

Huawei: Still banned from the NBN. Photo: Bloomberg

Chinese telecommunications giant Huawei is still hoping to have a federal ban on its involvement in building Australia's national broadband network overturned, despite Attorney-General George Brandis saying it will not be lifted.

Mr Brandis overruled several other cabinet ministers who were open to easing the ban, according to The Australian Financial Reviewby saying the previous government's decision would stand following fresh advice received after it came to power.

"The decision of the previous government not to permit Huawei to tender for the NBN was made on advice from the national security agencies," Mr Brandis said. "That decision was supported by the then opposition after we received our own briefings from those agencies."

"Since the election the new government has had further briefings from the national security agencies. No decision has been made by the new government to change the existing policy."

On Tuesday morning the company indicated it still has hopes the NBN Co strategic reviews ordered by Communications Minister Malcolm Turnbull will reconsider the decision in its favour.

"Huawei understands no decisions have been made by the government regarding the NBN, pending outcomes of the strategic review," a spokesman told IT Pro.

As recently as last week, Communications Minister Malcolm Turnbull had publicly offered his support to Huawei, labelling it a "very credibly business". Trade Minister Andrew Robb also backed a review of Huawei's involvement in the NBN, saying the company had a "big future in Australia".

Huawei was told by the Labor government in early 2012 that it could not supply NBN Co due to national security concerns. The former government banned the company's involvement on advice from Australia's national security agency ASIO. Then prime minister Julia Gillard said it was a prudent decision. Huawei later said the ban could breach Australia's international trade obligations.

The company was set up in 1987 by Ren Zhengfei, a former Chinese military engineer, to sell imported telecoms equipment. It started to develop its own later.

It says it is owned by its employees and denies it is controlled by the communist government or China's military, but it has had a hard time convincing the Australian and the US governments of its impartiality despite mounting a concerted public relations and lobbying campaign. Last year a US House Intelligence Committee said Huawei and another Chinese telecom, ZTE, "cannot be trusted" to be free of influence from Beijing and could be used to undermine US security.

Fairfax Media with Lia Timson

31 comments

  • My first thought was "Wow, Brandis is actually doing the right thing for a change."

    After which I realised that our comms will still transit the US, so why not let Chinese spies at it as well - it seems only fair.

    So - if Brandis is sticking with the ban because, even if the ALP started it, it's still the correct action then good on him. If it's because the US told him (via ASIO) to do so because it maintains their advantage then... actually, that would be about what I would expect.

    Commenter
    Bolivar diGriz
    Date and time
    Mon Oct 28 22:40:31 UTC 2013
    • good point. Questions haven't really been answered.

      Commenter
      lgrsydney
      Date and time
      Mon Oct 28 23:28:41 UTC 2013
    • My first thought was 'Is Brandis actually agreeing with a decision by the previous government?' Miracles can happen!

      Commenter
      Changa
      Location
      Brisbane
      Date and time
      Tue Oct 29 06:50:45 UTC 2013
    • Ponder all you like.... you'll never know.

      As it should be with national security.

      Commenter
      Reality Bites
      Date and time
      Tue Oct 29 07:00:16 UTC 2013
  • Good decision. No industry or business in China is privately owned or operated. Everything is controlled by the central government in Beijing. And why your're at it, tell those ex-Liberal hacks who are on the Huawei board, and are earning big dollars, that now would be a good time to resign and place their loyalities back in Australia.

    Commenter
    befuddled
    Date and time
    Mon Oct 28 23:37:18 UTC 2013
    • I thiw world we live, we have government controlled industries (China) and Industry controlled governments (eg USA amongst many others). Which evil would you choose?

      Commenter
      Al
      Location
      OZ
      Date and time
      Tue Oct 29 02:21:28 UTC 2013
    • hmmm - you do realise that lots of countries have government owned stuff - in our recent history we have MBF, Telstra (or if you're old enought to remember Telecom, what hoot they were), Qantas, etc. Additionally we have lots of companies heavily funded by the government with subsidies, like the motor industry. And then there's export grants, innovation grants and so on for business. Inventing some conspiracy theory because a company is owned or part funded by Government is bordering on a b grade spy novel. Do governments gather intelligence, yes they do. Will a government stop gathering the intelligence if they don't own the company, nope. If they want your favourite colour loaded in their data file, they're going to get it.

      Commenter
      Tired Camel
      Date and time
      Tue Oct 29 02:22:38 UTC 2013
    • You're half right.
      Huawei is a private company, started by a former Military Engineer.
      ZTE is a public company, listed on the HK stock exchange.

      By the way, Huawei have hedged their bets every well, not only do they have an ex-Liberal hack in Alexander Downer, that Huawei has bought onto it's board. They also have an ex-Labor hack, as in former Victorian Premier John Brumby.

      Commenter
      JR
      Date and time
      Tue Oct 29 09:51:58 UTC 2013
  • No, Bolivar, our telecommunications do not have to transit via the one network in the US that uses Huawei technology in the US - Verizon.

    There are plenty of other telcos that can be used to transit or terminate in the US that use other companies' technology.

    Commenter
    Rob
    Location
    RugbyHeaven
    Date and time
    Mon Oct 28 23:46:39 UTC 2013
    • I wasn't referring to the technology, but to the fact that US spy agencies tap the trans-Pacific cables. Given that Brandis, along with the rest of the world, knows this and appears to find no reason to object it seems rather churlish to deny our biggest trading partner similar access to our private communications, don't you think?

      Commenter
      Bolivar diGriz
      Date and time
      Tue Oct 29 01:23:50 UTC 2013

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