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View of a Huawei store in Xuchang, Henan Province, central China, in November. Photo: VCG
New Zealand should provide a level playing field for Chinese companies because its order to ban a local operator from using Huawei's 5G technology would only hurt its industry and consumers, said Chinese officials and experts.
These comments came after the New Zealand authorities on Wednesday ordered a local telecom operator not to use Huawei's 5G technology, citing reasons of national security. The order indicates that Wellington is taking action against Chinese companies in the wake of similar measures taken by Australia and the United States.
Huawei is aware of Spark's statement and is studying the situation. And the company will actively address any concerns and work together to find a solution, said a Huawei representative in public relations at the Global Times.
"Huawei's 5G equipment is already being developed by major operators around the world and we will continue to offer our customers innovative, safe and secure 5G solutions," she said.
The Chinese government has always encouraged Chinese companies to cooperate in foreign markets by complying with local regulations. Sino-New Zealand relations should be winning, said Geng Shuang, a spokesman for the Foreign Ministry, at a press conference Wednesday.
"We hope that the New Zealand government can put in place a fair competitive environment for Chinese companies, which would be good for bilateral relations," he said.
Spark New Zealand, a major telecommunications operator in the country, told Andrew Hampton, director general of the Office of Government Communications Security (GCSB), that she had not been informed authorized to use Huawei's 5G hardware, as this "significant risks to national security," according to a statement posted on the Spark website.
The company said it was "disappointed with this decision" and has not yet examined the detailed reasons for the ban.
The GCSB regulates network security under the New Zealand Telecommunications Networks Act. According to the intelligence agency, "a significant risk to network security has been identified", linked to the installation of equipment 5G, according to a statement posted on its website.
Spark's Corporate Relations Manager, Andrew Pirie, told Global Times on Wednesday that he had a positive relationship with Huawei for several years, with the Chinese company supplying equipment for Spark's 4G network since 2013. The company was working with Huawei on a possible collaboration. 5G for months, although contracts have not yet been signed.
Spark did not disclose the loss that he would suffer if he was forced to end his cooperation with Huawei on 5G.
"New Zealand took this step just after the United States asked its allies to say" no "to Huawei's equipment, and they follow the example of the United States in this case. but they will only hurt each other, "said Xiang Ligang, a representative from Beijing. experienced industry badyst, told Global Times on Wednesday.
The United States would have urged its allies, including Germany, Italy and Japan, not to use Huawei's equipment because of perceived cybersecurity risks, the Wall Street Journal reported last week. .
While New Zealand appears to be targeting Chinese telecom providers, ZTE Corp, another major supplier of 5G equipment, will have little chance of entering the market, Xiang noted. "Ericsson and Nokia have a choice among local operators, and they could face a cost increase of at least 30 percent," he said.
Huawei has become in 2017 the world's largest manufacturer of telecommunications equipment, beating Ericsson, according to media reports, quoting IHS Markit. The Chinese company accounted for 28% of the mobile phone infrastructure market in 2017, followed by Nokia and ZTE with 23% and 13% respectively.
However, some local residents and business representatives from the country said that there is an urgent need to catch up on advanced technologies, as the local telecommunication infrastructure can not meet the demand and ahead of time. to be modernized.
"We often have windy days and the network is particularly vulnerable," said a Chinese businesswoman living in Auckland, nicknamed Chen, at the Global Times. "The speed is very slow compared to China," she said.
Rejecting Chinese companies, which are one of the main strengths of the 5G era, will significantly slow the development of 5G in New Zealand, and its own consumers and industries will bear the brunt of this. decision, Xiang noted.
Newspaper Title: New Zealand should provide a fair environment for Chinese companies
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