Huawei is expected to deliver next-generation 5G equipment and mobile devices next year, but those products may not reach Australian shores at all. The Chinese company's Australian unit announced on Twitter that the country has banned Huawei and ZTE from providing 5G technology there due to national security concerns.
The ban prevents local mobile carriers in the country from purchasing 5G technology equipment from the Chinese companies. Australia's move worsens Huawei's regulatory woes across the world, with the company and ZTE having been recently blocked from supplying technology to the U.S. government.
In a statement, Australia's government cited concerns that companies under the "extrajudicial directions from a foreign government" may expose the country's network to unauthorized access and security risks. The fear is not without its basis. Organizations and individuals in China are required by law to aid in the government's intelligence efforts, making Huawei's technology a potential instrument of espionage.
Huawei maintained that it has been providing a secure wireless technology in Australia for nearly 15 years and added that the Australian government's move is disappointing for consumers.