
In 2018, Australia banned Huawei from providing 5G technology for its wireless networks, citing national security concerns. This decision was influenced by the Australian Signals Directorate (ASD), which advised that the risk of Huawei's involvement could not be mitigated, despite the company being accepted into the country's 4G system. The ban was formally announced by the Turnbull government and was the first of its kind, causing tensions with Beijing and impacting Huawei's operations and sales in Australia in subsequent years.
| Characteristics | Values |
|---|---|
| Year of ban | 2018 |
| Month of ban | August |
| Date of ban | 22 August |
| Companies banned | Huawei, ZTE |
| Ban announced by | Turnbull government |
| Ban confirmed by | Prime Minister Malcolm Turnbull |
| Ban motivated by | National security concerns |
| Ban's impact on Huawei Australia | Sales decline, employee lay-offs, organisational restructure |
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What You'll Learn

National security concerns
In 2018, the Australian government banned Huawei and ZTE from providing 5G technology for the country's wireless networks. This decision was reportedly based on national security concerns.
The ban was implemented by the Turnbull government, following security advice from the Australian Signals Directorate (ASD). The ASD conducted an extensive risk assessment, identifying 300 potential risks and mitigation strategies. They concluded that the risk could not be contained, even with the proposed measures. The problem lay in the knowledge of the system design, which could provide access to the entire network and potentially disrupt critical infrastructure.
The Chinese Communist Party's influence on Huawei was a significant concern. According to then-Prime Minister Malcolm Turnbull, if the Chinese government directed Huawei to act against Australia's interests, the company would be obliged to comply. This concern was heightened by China's 2017 National Intelligence Law, which requires Chinese companies to cooperate with state intelligence matters.
The ban on Huawei and ZTE was a formal declaration, despite previous efforts to manage the risk quietly. It set a precedent, as Australia was the first country to implement such a ban, and it significantly impacted bilateral relations with China. The Chinese government accused Australia of discrimination and politically motivated actions, indicating the decision remained a contentious issue between the nations.
The ban had notable repercussions for Huawei's business in Australia. The company experienced a decline in revenue, a reduction in its workforce, and a decrease in its overall footprint in the country.
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5G network risks
In 2018, Australia became the first country to formally ban Huawei from its 5G network. This decision was made after the Australian Signals Directorate (ASD) compiled a list of 300 risks and possible mitigations, ultimately advising that the risk could not be contained.
The rollout of 5G technology presents a multitude of risks and challenges that need to be addressed. As 5G networks become more deeply embedded in our lives, the security risks associated with this technology also increase. Here are some of the key 5G network risks:
- Increased Attack Surface: 5G networks have a wider attack surface compared to previous generations due to the increased number of connected devices and denser network infrastructure. This provides more entry points for potential cyber-attacks.
- IoT Device Vulnerabilities: The proliferation of Internet of Things (IoT) devices on 5G networks creates a challenge in securing these devices. Many IoT devices may lack robust security features, making them vulnerable to exploitation.
- Supply Chain Susceptibility: The 5G supply chain is susceptible to the introduction of vulnerabilities, such as malicious software and hardware, counterfeit components, and poor design or maintenance procedures. This can increase the risk of network asset compromise and affect data confidentiality, integrity, and availability.
- Legacy Infrastructure Vulnerabilities: 5G is currently being integrated with existing 4G LTE networks that contain some legacy vulnerabilities. These vulnerabilities may affect 5G equipment and networks despite additional security enhancements.
- Network Design Influence: Threat actors may attempt to influence the design and architecture of 5G networks, exploiting the increased number of ICT components used in 5G compared to previous generations. This could lead to increased network vulnerabilities.
- Disruption and Manipulation: Improperly deployed, configured, or managed 5G equipment and networks may be vulnerable to disruption and manipulation by malicious actors.
To address these risks, governments and organizations are developing strategies and initiatives to enhance 5G security and resilience. This includes identifying and understanding security threats, promoting secure deployment practices, engaging with stakeholders, and providing technical assistance to ensure a secure and reliable 5G future.
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China's 2017 National Intelligence Law
In 2018, Australia became the first country to ban Huawei, the world's biggest telecommunications equipment maker, from its 5G network. This decision was informed by the findings of a war game conducted by hackers from the Australian Signals Directorate (ASD), who estimated that it would take about 300 security measures to guarantee network safety. However, even these measures could not guarantee the network's safety, and they advised that the risk could not be contained.
This ban was influenced by China's 2017 National Intelligence Law, which requires all Chinese companies and citizens to comply with security agencies on intelligence matters. The law's vague definition of intelligence suggests that it includes both information collected and activities conducted in support of comprehensive state security.
Article 11 of the law states that national intelligence work institutions shall lawfully collect and handle intelligence related to conduct endangering the national security and interests of the People's Republic of China. This includes intelligence carried out by foreign institutions, organizations, or individuals, and it provides an intelligence base for preventing, stopping, and punishing such conduct.
Article 12 allows national intelligence work institutions to establish cooperative relationships with relevant individuals and organizations to carry out related work. Article 13 permits these institutions to engage in foreign exchanges and cooperation.
The law also outlines punishments for individuals who pretend to be staff of a national intelligence work institution (Article 30) and for staff who exceed or abuse their authority, violate the lawful rights of citizens, leak state secrets, or engage in other unlawful conduct (Article 31).
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Mitigation measures
Australia's formal ban on Huawei in 2018 was the first by any country. The ASD spent more than eight months trying to find a way to make the Chinese company's telecommunications equipment acceptably safe. They compiled a spreadsheet of 300 risks and possible mitigations, but ultimately advised that the risk could not be contained.
Some of the mitigation measures proposed by the ASD included:
- Full and sole access to the source code
- Updates being done in Australia only
- Full access to hardware schematics
However, these measures were not deemed sufficient to address the underlying problem of knowledge of the system design. As an intelligence officer explained:
> "It's the control of the design that gives you zero cost of entry. If I want to understand how to break in, I don't have to break in. I just look at the blueprints – I understand the software, I know how it works. That allows me to gain access, to switch things off, and that disrupts the country – elements of it, or the whole country. That's why you've got to be concerned."
Despite these concerns, there were risks associated with implementing a ban on Huawei. Turnbull acknowledged this dilemma, recognising that while allowing Huawei into the system posed risks, a ban on the company would also carry its own set of challenges.
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China's response
China's Ambassador to Australia, Xiao Qian, stated that Australia had “fired the first shot” with the Huawei ban, and urged the Australian government to abandon "ideological prejudices" and provide a fair competitive environment for Chinese companies. Foreign ministry spokesman Lu Kang expressed concern over the ban, stating that Australia should not use national security as an excuse to erect barriers and discriminate against Chinese companies.
The ban negatively impacted relations between the two countries, with Beijing placing it high on its list of grievances against Australia. China also denied allegations of meddling in Australian politics and cyber attacks on Australian networks, stating that these accusations had never been substantiated with evidence.
The ban on Huawei was a significant decision for Australia, weighing national security risks against the potential for damaging relations with its biggest trading partner. It set a precedent for other nations considering similar actions and highlighted the complex dynamics between countries in an increasingly interconnected world.
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Frequently asked questions
Australia banned Huawei from providing 5G technology for its wireless networks in 2018.
The ban was due to national security concerns. The Australian Signals Directorate (ASD) determined that Huawei's involvement in the country's 5G network would pose a security risk.
Huawei called the ban extremely disappointing and claimed that it would be a major blow to the company. The company also disputed the security concerns, stating that the ban was politically motivated.
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