Australia has banned two Chinese telecommunications firms from taking part in its national broadband network because of security concerns.
The government said Thursday it was banning Huawei and ZTE from rolling out the new 5G network because companies “who are likely to subject to extrajudicial directions from a foreign government” presented a security risk. The statement also said there was no combination of security controls that could lessen the risk.
Huawei’s Australian subsidiary responded on Twitter that Canberra’s decision was an “extremely disappointing result for consumers.”
Australia banned Huawei in 2011 from bidding for contracts to provide equipment for its fiber-optic network, citing similar security concerns.
Huawei, the world’s largest maker of telecommunications equipment, has long denied any ties with the Chinese government.
FILE - The logo of China's ZTE Corp is seen at the lobby of ZTE Beijing research and development center building in Beijing, China, June 13, 2018.
In April, the U.S. Commerce Department barred ZTE from importing American components for its telecommunications products for the next seven years, because of accusations that it sold sensitive technologies to Iran and North Korea despite a U.S. trade embargo.
But President Donald Trump later announced a deal with ZTE in which the Chinese company would pay a $1 billion fine for its trade violations, as well as replace its entire management and board by the middle of July.