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The New Zealand international spy agency on Wednesday prevented the Spark mobile phone company from using Huawei's hardware in its 5G upgrade project, saying it posed "a significant risk to the network security ".
The action follows a ban in Australia, where the Chinese telecom giant was prevented in August from deploying the Australian 5G network for security reasons.
In New Zealand, Huawei has already participated in the creation of mobile phone networks. In March, Spark and Huawei presented a 5G test site in front of Parliament, as part of an advertising campaign involving Minister of Broadcasting Clare Curran.
The latest development could have diplomatic and economic implications for New Zealand, which has China as the main trading partner, but is also part of the Five Eyes security alliance, which includes the United States, Great Britain, Canada and Australia.
China "gravely concerned" by move
At a daily press briefing in Beijing, Foreign Ministry spokesman Geng Shuang said China was "gravely concerned" by this decision.
"Economic and trade cooperation between China and New Zealand is mutually beneficial," said Geng. We hope that New Zealand will provide a level playing field for the activities of Chinese companies and foster mutual trust and cooperation. & # 39; & # 39;
Huawei said in a statement that it was reviewing the situation and would actively respond to any concerns in order to find a solution. The company is committed to developing reliable and secure solutions for its customers.
New Zealand was the first developed country to sign a free trade agreement with China in 2008, and China buys billions of dollars worth of dairy products exported by New Zealand every year, which are often used for manufacture of infant formula.
A US report warned
The previous Conservative government of New Zealand had close relations with China. But over the past year, under the leadership of Liberal Prime Minister Jacinda Ardern, New Zealand has somewhat withdrawn from the situation, adopting a warmer relationship with Japan and investing resources in the Pacific. to counter the growing influence of China in this country.
Huawei suffered a setback in the US market in 2012 when a congressional report said it was a security risk and warned the phone companies not to buy his equipment.
The Chinese private company was created by a former commander of the People's Liberation Army in 1987.
The decision disappoints Spark
Spark is one of the top three mobile network operators in New Zealand. Companies compete for customers on their own network of cell towers, using a government-approved radio spectrum.
Spark is said to be disappointed with the decision of the New Zealand Government's Office of Communications Security. However, the company said in a statement that it could continue to launch its 5G network by July 2020.
Spark said that he wanted to use Huawei 5G equipment in its radio access network, which involves a technology associated with the infrastructure of the cell tower. The company said that she had not yet had time to consider the detailed reasoning behind the spy agency 's decision or whether it would take more time. 39 other measures.
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