Spy con­cerns keep Chi­nese firm out of net­work bid­ding

The Washington Times Daily - - Business -

CAN­BERRA | Australia has banned Chi­nese tech­nol­ogy gi­ant Huawei from bid­ding to help build a na­tion­wide high-speed In­ter­net net­work be­cause of con­cern about cy­ber­at­tacks traced to China.

Aus­tralian Prime Min­is­ter Ju­lia Gil­lard said Mon­day that the move was among “pru­dent de­ci­sions” to en­sure that the planned net­work func­tions prop­erly.

The ban high­lights con­cern about Bei­jing’s cy­ber­war­fare ef­forts, a spate of hack­ing at­tempts aimed at Western com­pa­nies and the role of Chi­nese equip­ment providers, which are ex­pand­ing abroad.

Huawei Tech­nolo­gies Ltd. is one of the world’s big­gest pro­duc­ers of switch­ing equip­ment that forms the hearts of phone and data net­works. The com­pany re­jected sug­ges­tions that it might be a se­cu­rity risk and said it has won the trust of global telecom­mu­ni­ca­tions car­ri­ers.

Bei­jing’s re­la­tions with Western gov­ern­ments have been strained by com­plaints about hack­ing traced to China and aimed at oil, tech­nol­ogy and other com­pa­nies. A U.S. con­gres­sional panel has said it will in­ves­ti­gate whether al­low­ing Huawei and other Chi­nese mak­ers of telecom­mu­ni­ca­tions gear to ex­pand in the United States might aid Chi­nese spy­ing.

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