Chinese intelligence law an obstacle to Huawei’s 5G deal

A Chinese ‘‘national intelligence law’’ is understood to be one of the obstacles to technology giant Huawei being allowed to help build a 5G network in New Zealand.

It is understood Spark has now been fully debriefed by the Government Communications Security Bureau (GCSB) on why it declined a proposal from Spark to use Huawei to help build its 5G network.

Spark wants to have the 5G network up and running in 2020.

China’s National People’s Congress passed the National Intelligence Law in June last year.

It is understood the law is being interpreted to mean that any citizen or company linked to China can be compelled to engage in espionage or to collect intelligence anywhere in the world.

Huawei has been approached for comment.

Spark has said its 5G plan would have seen technicians employed by Huawei install 5G network access equipment in New Zealand.

The National Intelligence Law is not believed to be the only obstacle facing Huawei, with Spark likely to have also been presented with confidential material.

Although Huawei has been entrenched in New Zealand telecommunications for several years, supplying network equipment to Spark, 2degrees, Vodafone and Chorus, it is understood there are particular sensitivities over the next generation in mobile technology.

These are believed to centre on the concern that people’s personal information could not easily be ‘‘ring-fenced’’ within the core of the new network – which Huawei is not competing to supply – because of the particular characteristics of 5G.

The debriefing means the ball is now back in Spark’s court. Spark spokesman Andrew Pirie said it was still in dialogue with the GCSB.