Liam Dann: Huawei's decision will hurt relations with China

COMMENT:

Today's decision by the GCSB to ban Spark from working with Chinese telecom Huawei is a huge call that will further damage the already tense relations with Beijing.

For this to have been announced to the world via the Spark press release is also very bad looking.

The GCSB told Spark that using Huawei to build the 5G national mobile network posed a security risk.

In launching this call, they have placed New Zealand on the same side as the United States and Australia in a global stalemate with deep diplomatic implications – a goal we have so far managed to surpass.

This may have been an inevitable decision, as the United States has increased pressure on its allies and partners to stop working with Huawei in the face of mounting geopolitical tension.

Nevertheless, this will be considered a highly symbolic gesture by the Chinese government.

And that sounds like a bombshell for many international trade officials and New Zealand diplomats who felt the decision was far from over.

Spark, obviously disappointed, issued a statement in which he said he had been informed directly by the head of the GCSB.

This raises questions about the extent to which the government has handled the diplomatic process well.

GCSB Minister Andrew Little made opaque comments about Huawei's "unauthorized" intervention.

Has the Prime Minister really gone through that? Little says she was briefed

But the prime minister has tried not to call the issue of homeland security of academic Anne-Marie Brady, who claims to have been harassed by Chinese interests.

This makes this diplomatic call much more important even more dramatic.

Have Chinese officials been informed in a way that would allow them to save face?

These things matter to the political powers that control our largest export market.

Have New Zealand trade officials been informed? The leaders of Fonterra and Zespri with billions of dollars in trade?

New Zealand currently has negotiators in Beijing trying to get an upgrade to our free trade agreement with China.

Their perspectives now look bleak.

The news comes just three days after the prime minister asked for a visit to Beijing in December.

Is it linked?

There are certainly a number of difficult issues at play in this once "special" relationship.

It is good that New Zealand adopts a stronger diplomatic stance on issues of political divergence with China.

Australia has done so and the trade is continuing – as it will for New Zealand.

But unfortunately, New Zealand was forced to make a difficult and delicate call at a particularly difficult and delicate time.

This will surely have repercussions.