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WELLINGTON – Trade and technology clash between the United States and China is pushing countries in the Asia-Pacific region to choose sides, as New Zealand's decision to prevent society this week proves Chinese Huawei Technologies to contribute to its 5G network.
It was not a decision Wellington could take lightly.
New Zealand became the first developed country in 2008 to sign a free trade agreement with China. Later, the FTA partners, especially Australia – a close rival in the dairy and other key export sectors – have gained better market access Chinese in some areas. Thus, last year, Wellington began talks with Beijing on improving their pact.
Paul G. Buchanan, director of the 36th Parallel Assessments, a geopolitical risk consulting firm in Auckland, said Huawei's decision could slow or hinder trade talks and eventually lead to a break with China or the United States. .
"I fear that the hour of the accounts will be done before, because the United States accelerates their conflict with China", he declared. "One or the other will put pressure on us and we need an emergency plan."
The last round of discussions between the two governments took place in September. A sixth round was to take place soon. Premier Jacinda Ardern was due to visit China in December, but last week Beijing canceled the visit because of what the Ardern office described as a planning problem.
Huawei had announced on November 21 the successful completion of a 5G network test with telecommunications operator Spark New Zealand. But on Wednesday, Spark said it would not be able to go any further with Huawei, a government security bureau that said the Chinese company's involvement in the network posed a significant security risk .
This decision came as the United States lobbied its allies, such as Canada and Germany, to prevent Huawei's equipment from becoming part of their planned 5G networks.
"The United States and Australia have already acted," said Buchanan. "Canada and the United Kingdom are inclined to act, they accept and reject Huawei and we approve of it, the diplomatic repercussions would be very significant."
New Zealand's Minister of Commerce David Parker downplayed Wednesday the fear of the economic impact of the decision on Huawei, telling reporters that relations between Wellington and Beijing were well established. A spokesman for the Chinese Foreign Ministry, however, urged New Zealand to "create an environment of fair competition for Chinese companies operating in New Zealand and [do] more to the benefit of bilateral trust and cooperation. "
On Thursday, both sides sought to chart the path for a compromise. Andrew Little, the minister responsible for the Communications Security Branch, said Spark could potentially modify its 5G development plans to address the government's security concerns.
Huawei New Zealand has said it wants an urgent meeting with the government. "Huawei would be pleased to be able to actively respond to any concerns and work together to find a solution," said Andrew Bowater, Deputy General Manager.
The government has been under pressure in recent months because of China's alleged interference in domestic affairs. On Tuesday, Winston Peters, Deputy Prime Minister and Minister of Foreign Affairs, raised a controversy over reports of intimidation and harbadment of local professor Anne-Marie. Brady, who published a study on Beijing's manipulation of Chinese ethnic organizations and media.
"You would be terribly naive to think that foreign powers do not spy on New Zealand citizens," Peters told a radio interviewer. "The question in this case is where it comes from."
He also said that he was concerned about the alleged activities of Yang Jian, a legislator of the National Opposition Party, who admitted to being a language instructor at a Chinese spy school and a former member of the Chinese Communist Party.
"In fact, we are being asked to believe that someone who was part of the Chinese secret service has more loyalty to this service," Peters said.
On Monday, 29 academics signed an open letter to Ardern asking him to clearly oppose the intimidation of academics, following Brady's report to the police on falsifying his car. She had previously reported burglaries at her home and office.
Tensions between Wellington and Beijing have also appeared on the security front. In July, New Zealand's New Strategic Defense Policy Statement stated that China was challenging the existing world order and expanding its military presence in disputed waters, prompting a reprimand from the Chinese Foreign Ministry.
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