Huawei says it has never engaged in any illegal activities

According to foreign media reports, the Australian government has confirmed that the decision to prohibit China Telecom manufacturers Huawei Technology to participate in its national broadband network bid is a "risk-based decision."

In a report in the Australian Financial Review, a spokesman for Kevin Rudd, the prime minister, called the National Broadband Network a "strategic investment" and the Government had a responsibility to protect its security.

Huawei has long denied that the company has close ties to the Chinese military and government. Last week, however, former CIA director Hayden Michael Hayden again accused the telecoms provider of spying for China.

Huawei has firmly denied the latest allegation, and a company spokesman said in an ABC interview that the allegation was "absurd and unfounded". Huawei has never engaged in any illegal activities, but the company founder Ren, who has been a civil engineer in the PLA for more than 20 years, has become the biggest headache for the company's public relations department, especially as it tries to move into lucrative corporate markets.

Australia is the only place where Huawei has a local board outside the mainland. John John Lauder, chairman of Huawei Australia, recently said that banning a supplier or country from participating in a national security network does not make the country's critical infrastructure safer. In addition, he said, the global supply chain means that equipment from Huawei rivals, such as Cisco and Alcatel-Lucent, is also assembled in China in large part.

Huawei's current situation contrasts with ZTE, its local telecoms equipment supplier, which has been invited to bid for a national broadband network, according to CRN.

Alainsaaroni, executive director of ZTE Australia/New Zealand, said in an interview with CRN that the company had had "full" discussions with the Australian government and federal authorities and had been informed that "Australia welcomes ZTE's participation in its national broadband network". Saaroni initially said ZTE had communicated with the Australian Security Intelligence Organization (ASIO), but later corrected his claim that the company had not contacted the security agency.

According to a follow-up report published by CRN's sister Journal SC, Australia's security Intelligence Group declined to explain the approval of ZTE and the reasons why Huawei Technology was shut out.

Australian Security Intelligence said in a statement to SC, "the Australian Security Intelligence Organization for the Government, any recommendations for the protection of critical infrastructure, including telecommunications matters, are classified information." ”

Last year, the US Senate committee reported a security breach in the communications equipment provided by ZTE and Huawei Technology, and the White House survey of Huawei drew similar conclusions.

Opponents of the federal government's ban on Huawei's participation in the national broadband network say the company has been awarded a similar contract to deploy its high-speed broadband network. The company then set up a safety testing facility in Banbury, a move aimed at strengthening its security assurances.