{"id":39994,"date":"2018-06-15T09:45:45","date_gmt":"2018-06-14T23:45:45","guid":{"rendered":"https:\/\/www.aspistrategist.ru\/?p=39994"},"modified":"2018-06-15T09:42:25","modified_gmt":"2018-06-14T23:42:25","slug":"huawei-highlights-chinas-expansion-dilemma-espionage-or-profit","status":"publish","type":"post","link":"https:\/\/www.aspistrategist.ru\/huawei-highlights-chinas-expansion-dilemma-espionage-or-profit\/","title":{"rendered":"Huawei highlights China\u2019s expansion dilemma: espionage or profit?"},"content":{"rendered":"
<\/figure>\n

The Australian government will soon<\/a> announce its decision on whether to allow Huawei to participate in Australia\u2019s 5G\u00a0network. It\u2019s one of the most important policy decisions the prime minister will make this year. And it\u2019s complicated<\/a>. 5G\u00a0is the next generation of cellular technology. It will be faster and more responsive, and will provide us with better coverage. It will underpin<\/a> our future economy and will supposedly be up to 1,000\u00a0times faster<\/a> than current 4G\u00a0networks.<\/p>\n

So, it\u2019s critical national infrastructure. Of course, a number of Australian and international companies want a piece of it\u2014including state-owned and state-supported<\/a> companies from China that loom large in the global telecommunications field. Huawei\u2014now the largest telecommunications equipment manufacturer in the world\u2014is the most dominant of these.<\/p>\n

If all things were created equal, Huawei would be a competitive participant in Australia\u2019s 5G\u00a0network. But all things aren\u2019t equal, particularly when it comes to critical infrastructure. From the Australian point of view, there are geopolitical and security issues to consider. Much of the public debate has zeroed in on cybersecurity, the potential for backdoors and the need to check Huawei\u2019s equipment and software<\/a>. Those are serious concerns, but there\u2019s an issue far bigger than Huawei itself.<\/p>\n

Ironically, China\u2019s own laws make Huawei unsuitable to participate in Australia\u2019s 5G\u00a0network. As first detailed in The Strategist<\/em><\/a> by ICPC fellow Elsa Kania, Article\u00a07 of China\u2019s 2017\u00a0National Intelligence Law (\u56fd\u5bb6\u60c5\u62a5\u6cd5) declares<\/a>:<\/p>\n

All organizations and citizens shall, in accordance with the law, support, cooperate with, and collaborate in national intelligence work, and guard the secrecy of national intelligence work they are aware of. The state will protect individuals and organizations that support, cooperate with, and collaborate in national intelligence work.<\/p><\/blockquote>\n

A company might have the best of intentions\u2014work hard, foster a good reputation, make a profit\u2014but this law undercuts those intentions by making it clear that Chinese organisations are expected to support, cooperate with and collaborate in national intelligence work. They must also keep the intelligence work they\u2019re aware of a secret. In return, the Chinese state will protect them.<\/p>\n

How can Australia policymakers working on\u00a05G sidestep this declaration? The law obviously could be used to Australia\u2019s detriment.<\/a><\/p>\n

The law makes things surprisingly easy for the Australian government. It provides the prime minister with uncompromising evidence that Huawei\u2014and any other Chinese company for that matter\u2014isn\u2019t a suitable participant in the 5G\u00a0network and other public infrastructure<\/a>.<\/p>\n

Of course, the timing of the announcement will be tricky. The bilateral relationship isn\u2019t in a great place, and the government\u2019s announcement will be another major pothole<\/a>. It will, of course, kick off a new series of Global Times<\/em> articles<\/a> and tweets<\/a> criticising and threatening the government and Australian businesses<\/a> (thankfully, though, there are creative options<\/a> to help break this Australia\u2013China media feedback loop<\/a>).<\/p>\n

There may be moves to double-down on the Chinese Communist Party\u2019s famed \u2018boycott diplomacy<\/a>\u2019 that seeks to coerce policy change in foreign governments by punishing private industry. Or we could see a consumer-led netizen boycott spread online\u2014the<\/a> examples<\/a> of<\/a> which<\/a> are<\/a> endless<\/a>\u2014targeting Australian products or companies. Governments and global industry should be prepared to be on the receiving end of such boycotts. They\u2019re common, and just another input that needs to be considered as part of any company\u2019s risk matrix for operating in China. We\u2019ve seen versions of such boycotts targeting products in Australia (wine<\/a>), Norway (salmon<\/a>), Japan (cars<\/a>, electronics<\/a>, retail<\/a>), the United States (fast food chains<\/a>), France (supermarkets<\/a>), South Korea (supermarkets, cars, entertainment, tourism<\/a>) and Taiwan (tourism<\/a>, students<\/a>).<\/p>\n

But the decision\u2014particularly if the announcement references this law\u2014will be hard to credibly refute by the Chinese government and its state-owned media. After all, the government has only itself to blame. By introducing expansive and aggressively ambitious intelligence laws, it has locked in a potentially powerful intelligence-collection system. More organisations and individuals collecting material on behalf of the state means a more diverse collection and more intelligence feeds flowing into government. That\u2019s great news for the state, particularly China\u2019s intelligence analysts and national security policymakers.<\/p>\n

But it\u2019s a double-edged sword for China. Requiring individuals and organisations to support, cooperate with and collaborate in intelligence activities, of course, comes at a cost. And that cost will be the international expansion plans of Chinese companies\u2014state-owned and private\u2014 which have been well and truly boxed into a corner with this law. The CCP has made it virtually impossible for Chinese companies to expand without attracting understandable and legitimate suspicion. The suspicion will be deeper in countries that invest in countering foreign interference and intelligence activities. Most developed countries, including Australia, fall into that category.<\/p>\n

This fascinating tension\u2014between commerce and intelligence collection\u2014will only intensify and will eventually force some tough decisions. What\u2019s more important to the CCP? Using Chinese companies operating overseas to collect intelligence or supporting the international success of those companies?<\/p>\n

A little from column A and a lot from column B is probably the ideal mix for any government. But betting big and hoping for roaring global success on both fronts is a crucial mistake. The two just don\u2019t go hand in hand. There will be a loser. And this year, at least in Australia, it will be Huawei.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Australian government will soon announce its decision on whether to allow Huawei to participate in Australia\u2019s 5G\u00a0network. It\u2019s one of the most important policy decisions the prime minister will make this year. And it\u2019s …<\/p>\n","protected":false},"author":691,"featured_media":39996,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[1],"tags":[52,1395],"class_list":["post-39994","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-china","tag-critical-infrastructure"],"acf":[],"yoast_head":"\nHuawei highlights China\u2019s expansion dilemma: espionage or profit? | The Strategist<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aspistrategist.ru\/huawei-highlights-chinas-expansion-dilemma-espionage-or-profit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Huawei highlights China\u2019s expansion dilemma: espionage or profit? | The Strategist\" \/>\n<meta property=\"og:description\" content=\"The Australian government will soon announce its decision on whether to allow Huawei to participate in Australia\u2019s 5G\u00a0network. 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