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Australian Gov't Bans Huawei From National Network Bids

An anonymous reader writes "It looks like paranoia regarding Chinese cyber-espionage is riding sky-high within the Australian Government. It was confirmed today that the country's Attorney-General's Department had banned Chinese networking vendor Huawei (the number two telco networking equipment vendor globally) from bidding for work supplying equipment to the government's $50 billion National Broadband Network universal fibre project. The unprecedented move comes despite Huawei offering to share its source code with security officials, and despite Huawei not being accused of breaking any laws in Australia. Questions over the legality of the Government's move are already being raised."

42 of 168 comments (clear)

  1. Oh no! National interest trumping the Free Market by Anonymous Coward · · Score: 3, Funny

    Surely some capitalist ideologue must be spinning in his grave...hey, I bet that could be harnessed to drive a generator.

    He won't mind, it's a free market solution!

  2. Are the concerns valid? by AtomicSymphonic · · Score: 5, Interesting

    I think Huawei was also left out of consideration when AT&T and Verizon were looking to build more LTE towers in the US. Or was that the federal government didn't want their equipment out of this fear?

    Would love if someone clarified this.

    1. Re:Are the concerns valid? by Anonymous Coward · · Score: 2

      I believe that India too had blacklisted Huawei some years earlier, and a lot of foreign countries would be nervous about a company that's in bed w/ the Beijing regime being in charge of setting up their infrastructure.

    2. Re:Are the concerns valid? by Anonymous Coward · · Score: 5, Insightful

      Code audits don't reveal backdoors in hardware. I've disassembled malicious silicon from China. I don't really trust anything built in their fabs now. Personal phone calls, sure. Corporate, well, just assume you've been compromised.

    3. Re:Are the concerns valid? by AK+Marc · · Score: 3, Insightful

      Why is being in bed with Beijing bad, but in bed with DC ok?

    4. Re:Are the concerns valid? by Aaron+B+Lingwood · · Score: 2, Insightful

      Why is being in bed with Beijing bad, but in bed with DC ok?

      It is about preserving our way of life. China is a Marxist–Leninist single-party state (nominally communist). The US and Australia are both democracies whose constitutions share similar ideas. China has played a big part in the spread of communism, mostly through force.

      --
      [Rent This Space]
    5. Re:Are the concerns valid? by CrackedButter · · Score: 2

      It is about preserving our way of life. The US is a corporatist two party state (nominally democratic). The US and Australia are both corporatacies whose constitutions share similar ideas. The US has played a big part in maintaining their ideals, mostly through force.

  3. Their source code? by Majik+Sheff · · Score: 4, Insightful

    Don't they mean Nortel's source code?

    --
    Women are like electronics: you don't know how damaged they are until you try to turn them on.
  4. Re:national security by Anonymous Coward · · Score: 4, Informative

    Except of course that the WTO agreements prevent exactly this kind of national/regional/local concerns and specifically prohibits tender discrimination on the basis of national origin of the tendering company. Welcome to the brave new world.

  5. No you mean Cisco's by Anonymous Coward · · Score: 5, Informative

    Cisco alleged Huawei stole their tech, but had to drop the suit after the chinese gov't made it uncomfortable for Cisco.
    http://www.theregister.co.uk/2003/01/24/cisco_sues_huawei_over_ip/

  6. Is it paranoia if it's true? But what do you have? by Sarusa · · Score: 5, Insightful

    Huawei is an arm of the Chinese government. Officially and in practice. There are members of the Chinese Communist Party permanently assigned to it who monitor correctness and suggest policy (under pain of death). They will spy and steal tech if the Party thinks it's useful. That's just how they roll.

    The only real question is whether anyone gives a damn what's going over Australia's National Broadband Network. If not, then Huawei may be cheaper.

  7. Ban consumer electronics too? by ChunderDownunder · · Score: 3, Informative

    Huawei already supplies 3G USB dongles, cheap android phones and tablets to the Aussie consumer. If that's the case, isn't the Chinese govt already harvesting data from our private citizens? Hmmm, paranoia much?

    Conroy might partner with the Chinese on his great firewall of Australia - apparently they have expertise in such matters. ;-)

  8. Re:Good by Anonymous Coward · · Score: 2, Informative

    Also, their equipment sucks walrus balls. I've had the dubious joy of using some of their shitty switches and routers as a luser in Eastern Europe, where they are the king of supply for virtually every ISP, and I've never had as much trouble. No, most of the time it wasn't due to misconfiguration.

  9. Maybe the Oz govt doesn't want to censor us? by barv · · Score: 3, Insightful

    I just bet that Huawei networking has really neat built in ways to censor all sorts of content from pirated stuff, child porn, maybe even (gasp!) political comments. So maybe our (Oz) government really isn't interested in censorship?

    Nah. On second thoughts, they were just too dumb to notice the opportunity.

  10. No, he means Nortel's by Collapsing+Empire · · Score: 3

    See here and here.

    But the Cisco incident is relevant too.

  11. Re:national security by AHuxley · · Score: 4, Informative

    Australia has done that in the past.
    http://www.australiandefence.com.au/DB96D390-F806-11DD-8DFE0050568C22C9
    Australia's Foreign Investment Review Board let SingTel purchase Optus i.e. Singapore's government-owned telco got the Optus C1/D joint civil/military communications satellite.
    The dedicated military payload paid for by Australia is used for satellite communications in Australian and south-east Asia.
    The payload came from the USA and Japan was the contractor ....
    The main problem for the NBN would be the US/UK/NZ/Canadian/Australian telco choke points- who gets to mirror off every packet in and out of Australia.
    An embassy or joint space project can be contained. Communists deep in your ducts long term is not a good idea.

    --
    Domestic spying is now "Benign Information Gathering"
  12. Not a smart move to openly object to this ban. by sethstorm · · Score: 3, Insightful

    Questions over the legality of the Government's move are already being raised.

    ...by people who support Huawei, most likely. Unfortunately for Huawei's defenders in Australia (and outside of Australia as evidenced by those), it puts them in the open as standing against their own country and having a greater allegiance for the PRC.

    Stand strong Australia, and resist the urge to bend to the will of China. They will do everything to get you to back down - stop only when they give up and lose face.

    --
    Twitter supports and protects racists - by smearing their critics with the "Hate Speech" label.
    1. Re:Not a smart move to openly object to this ban. by X.25 · · Score: 4, Funny

      ...by people who support Huawei, most likely. Unfortunately for Huawei's defenders in Australia (and outside of Australia as evidenced by those), it puts them in the open as standing against their own country and having a greater allegiance for the PRC.

      Stand strong Australia, and resist the urge to bend to the will of China. They will do everything to get you to back down - stop only when they give up and lose face.

      Are you ok, mate?

      I've seen members of various sects being more sane than you.

      Here we are, year 2012, and the same people who've been stealing and helping their cronies are still scaring the "free world" in the same way like they've done for past 60 years.

      Don't mind them putting the cash in pockets, just please be scared of evil .

      Anyone who thinks this has anything to do with 'national security' is incredibly dumb.

      This has to do with kickbacks and lobbying.

      Oh look - there is a communist hanging off your chandelier!

    2. Re:Not a smart move to openly object to this ban. by emt377 · · Score: 4, Insightful

      No, China wouldn't consider a trade war. They'd appeal to the WTO, claiming Australia makes an unreasonable claim to Article XIV.1.a. But clearly 1) this only affects Huawei, not all Chinese network equipment makes, 2) in fact is only coincidentally affecting China with Huawei being a Chinese entity, 3) a government buying secure routing equipment can discriminate based on reputation of vendors.

      The bigger issue is how China can be permitted to continue to allow its state to run businesses while remaining a member of the WTO. It's a problem illuminated by Huawei: the business is suspect, which makes the Chinese government suspect. Which then makes ALL businesses the Chinese government meddles in suspect. Which is tantamount to discrimination based on origin when they're shown the door. The WTO was never intended to include countries like China where there is no constitutional separation between affairs of state and private business.

    3. Re:Not a smart move to openly object to this ban. by bloodhawk · · Score: 2

      This is an idiotic move, it will mean less competition and even more expensive prices. At worst they should have let them bid and just dropped their tender in the bin, by removing them completely it will just allow what little competition there is free reign to overcharge us.

    4. Re:Not a smart move to openly object to this ban. by AK+Marc · · Score: 2

      It's a question of wasting money supporting more expensive white companies while hating on the yellow man (or people from a country with one party, rather than two parties who collude and take actions almost indistinguishable from each other).

    5. Re:Not a smart move to openly object to this ban. by dbIII · · Score: 2

      Nevertheless, you seem pretty opinionated about it!

      At one point there was almost a weekly Downer stuffup which appeared to be an almost textbook example of why you shouldn't employ somebody just because their grandfather was famous. Petty little crap like hijacking some Pandas given as an exchange with a Queensland koala sanctuary and sending them to a zoo in his own city which is now going broke. That and many other things were seen as a diplomatic insult.

      May be something to do with being Australia's longest serving Foreign Minister.

      The department shrank in responsibility and size dramaticly on his watch - just about everything important was moved to intelligence services and other departments. He turned it into the department of dinner parties.

      like he and John Brumby have picked up here are just the way politics works - for both sides.

      Huawei may be hedging their bets by getting one from each side. It will probably work.

    6. Re:Not a smart move to openly object to this ban. by toriver · · Score: 2

      No, I am saying that people who think Huawei hardware is controlled by the PRC government should cut down on the pot.

  13. Re:national security by OeLeWaPpErKe · · Score: 5, Interesting

    OTOH I know a lot of private companies that have banned huawei. I seriously doubt at this point that this is a coincidence.

    Personally I think they've been caught red-handed in a high-profile network about 2 years ago and the big guys employ people who know the details about this.

  14. Re:Is it paranoia if it's true? But what do you ha by Sarusa · · Score: 3, Interesting

    This is true - we know AT&T forwards all your packets to the NSA, pissing itself with its eagerness to do so, and the other ISPs probably do so as well.

    In theory you should encrypt everything strongly. But in practice, people overwhelmingly just don't do that.

    So this is the Australian government, who we know wants to inspect every single packet sent in Australia (since they've said so), deciding they want to limit it to companies under their thumb instead of under China's thumb.

  15. Re:Oh no! National interest trumping the Free Mark by ozmanjusri · · Score: 3, Interesting
    It's unlikely to have much to do with the Australian national interest.

    The current Australian government has been making increasingly bizarre decisions, many of which will clearly will be to the detriment of Australian citizens. It's very likely this decision to ban a specific vendor, along with many other recent government mandates are at the behest of their puppet masters.

    “Four Corners” itself noted that the key Labor coup plotters, as revealed in WikiLeaks cables, had long been secretly informing Washington about the internal workings of the Labor government. The same cables make clear that the Obama administration was disenchanted with Rudd over a range of issues, especially his attempts to moderate rising tensions between the US and China. Gillard, on the other hand, was viewed in positive terms as someone who could be counted on to toe Washington’s line.

    http://indymedia.org.au/2012/02/22/the-role-of-the-us-in-the-leadership-crisis-in-the-alp
    http://pirateparty.org.au/2012/03/22/pirate-party-disgusted-by-rampant-government-secrecy/

    --
    "I've got more toys than Teruhisa Kitahara."
  16. Paranoia? by NetNinja · · Score: 3, Interesting

    Who needs to be paranoid when companies whos bottom line is to send out work to a low wage paying country so they can turn maddive profits at the expense of national security?

    Cisco doesn't seem to care so why should any other company?

    If you think for one moment that the Chinese governement doesn't have spies working in those factories and making coppies of every single chip and installing doomsday chips in those electronics you are very naive.

  17. Re:Is it paranoia if it's true? But what do you ha by bertok · · Score: 5, Informative

    Having a copy of the source provides only minimal protection. See for example the Underhanded C Code Contest.

    It would be an almost trivial exercise to introduce a vulnerability into a code base that wouldn't be picked up easily by either human or mechanical inspection. Even if such a vulnerability was detected, the vendor could simply claim that it was a coding error, fix it, and get away with it unpunished. By adding a few dozen such vulnerabilities, the vendor could play this game for years without anyone ever being able to prove wrongdoing.

    There's no hope of isolating the equipment or software from the Internet either, because the use-case here is a National Broadband Network, the whole point of which is to create a new public Internet backbone.

  18. Re:Oh no! National interest trumping the Free Mark by Anonymous Coward · · Score: 2, Informative

    G'day Clive, you fat bastard! How are your "Greens are a CIA plot" claims working out for you? Don't worry - we know what "China First" really means - but we won't tell anyone. *snort*

  19. Re:national security by Anonymous Coward · · Score: 2, Insightful

    True enough on this. Remember it's not paranoia when you know they're after you(or your stuff, or secrets), it's being smart and protecting your ass.

  20. Re:national security by X.25 · · Score: 2

    Personally I think they've been caught red-handed in a high-profile network about 2 years ago and the big guys employ people who know the details about this.

    You think "they've been caught red-handed"? I mean, do you have ANY information to share, except what your sixth sense tells you?

  21. Re:national security by Anonymous Coward · · Score: 3, Interesting

    Duh Nortel, where have you been?

  22. Re:Oh no! National interest trumping the Free Mark by ozmanjusri · · Score: 3, Insightful

    G'day Clive, you fat bastard! How are your "Greens are a CIA plot" claims working out for you?

    Clive's clearly a loon, but he's just a symptom of the problem.

    Check each of the links below and ask yourself "Would this be happening in a country where the actions of the government are in the best interests of its people".

    Let me know your answer. I'll be interested.

    http://www.abc.net.au/news/2012-03-21/australians-pay-highest-power-prices-says-study/3904024
    http://www.abc.net.au/lateline/content/2012/s3460798.htm
    http://www.crikey.com.au/2012/03/21/official-australia-the-best-place-for-miners-in-the-world-again/
    http://www.smh.com.au/opinion/politics/billionaires-grow-fat-off-lazy-government-20120321-1vij7.html

    --
    "I've got more toys than Teruhisa Kitahara."
  23. Re:Oh no! National interest trumping the Free Mark by Anonymous Coward · · Score: 3, Insightful

    No doubt you will feel cheated if Australia doesn't receive all the benefits of Chinese attention that the United States has received.

    FBI cracks down on China's elusive army of amateur spies

    The FBI estimates that more than 3,000 "front companies" have been established by Chinese nationals in the US specifically to purloin military and economic secrets illegally.

    Let Me Count The Ways China Is Stealing Our Secrets

    China: Suspected Acquisition of U.S. Nuclear Weapon Secrets

    This CRS Report discusses China’s suspected acquisition of U.S. nuclear weapon secrets, including that on the W88, the newest U.S. nuclear warhead.

    China's Secret War

    Of course, why worry?

    China warns Australia against military pact with US
    Aussies fear threat of war with China

  24. Re:Oh no! National interest trumping the Free Mark by Beryllium+Sphere(tm) · · Score: 2

    >toe Washington's line

    Bless you for getting this phrase right. I was afraid everyone forever was going to write "tow the line", which doesn't even make sense.

  25. Re:national security by Anonymous Coward · · Score: 5, Insightful

    Australia is usually very open with China and acknowledges them as a crucial trading partner; often bending over backwards to accommodate Chinese business, especially the current government.

    I would think that there must be some serious intelligence information motivating this public slap in the face for a top-tier chinese company.

  26. Re:Oh no! National interest trumping the Free Mark by ozmanjusri · · Score: 2

    No doubt you will feel cheated if Australia doesn't receive all the benefits of Chinese attention that the United States has received.

    We're already receiving that same kind of attention from the USA, to the extent that they're choosing our political leadership for us.

    America, China, neither have real Australians interests in mind, so what does it matter who's meddling most?

    --
    "I've got more toys than Teruhisa Kitahara."
  27. its and about spying and national security by gedw99 · · Score: 3, Interesting

    The reason that india, Oz and the US blocked using chinese core networking equipment is because that don't have access to the firmware or can check that what they are told is the firware really is what is burned into the hardware.

    Also they can have other dedicated stuff in the hardware that n one would know about.

    so they worry that their core networks can be hacked by the chinese government.

    this is why they are banned.

    this is NOT a solution though. We have to leanr to co-operate.
    The ONLY way that these types of crazy situation can be fixed is by social and democratic change world wide

    G

  28. Red Chinese are compulsive thieves and liars by benjfowler · · Score: 2, Funny

    The Red Chinese are culturally compelled to lie compulsively and steal anything that isn't nailed down. They hate us white devils like poison, and will do anything to get one over us.

    They had MALWARE running on the personal PCs of Australias senior political leadership, for crying out loud!

    Huawei is a defacto branch of the Chinese military. The Chinese CANNOT be trusted. Full stop.

  29. Re:Oh no! National interest trumping the Free Mark by ozmanjusri · · Score: 2

    I haven't checked your other links - but I'm too lazy to

    And you're also too lazy to read the white paper in the link, which clearly shows your regurgitation of the government argument is spurious. Other places with similar infrastructure needs have much lower prices e.g.

    "Its research shows that Texas, which has comparable high-peak demand, is among the lowest in the world in terms of cost."

    --
    "I've got more toys than Teruhisa Kitahara."
  30. Re:Better safe than sorry by Electricity+Likes+Me · · Score: 2

    Let's not turn this into some weird racial thing. There are very good reasons to be skeptical of letting non-allied governments, or indeed any external governments, near major national communications hardware - especially if it's likely to find use for defense or other strategic purposes.

    One of the single biggest problems with things like this is the hardware side of things: how do you make sure that the black-box hardware you're buying (and any silicon chip is exactly that, at least until you open it up and follow the traces and even then - see the Underhanded C Contest - for why "source code" is a poor metric for determining security in a lot of cases.

    Letting a Chinese company install large orders of hardware into a national network is just idiotic. It may not be that much wiser letting a US company do it, but Australia is allied with the US whereas we still define national security policy by notionally assuming China to be a foe in some capacity.

    Google pulled out of China precisely because they experience demands for surveillance and repeated efforts by suspect government sponsored hackers to invade the privacy of accounts. Letting companies from the same area install network hardware is madness.

  31. Re:Nothing but a cynical political ploy by barv · · Score: 2

    Huh? Didn't he (or you) mean North Korea? Isn't that the rocket the Japanese threaten they will shoot down?