Huawei denies 'ludicrous' espionage claims

Renai LeMay, ZDNet.com.au | December 18, 2008 7:49 AM PST

Summary

Chinese networking vendor Huawei has slammed as "ludicrous and inaccurate" claims that it had links to the Chinese military and government that could cause security problems for the National Broadband Network.

Chinese networking vendor Huawei has slammed as "ludicrous and inaccurate" claims that it had links to the Chinese military and government that could cause security problems for the National Broadband Network.

The Australian newspaper today reported that security agencieswould "closely examine" any Huawei involvement in Optus' bid tobuild the National Broadband Network due to international concernsabout the company's links with Chinese authorities.

But in a statement released this afternoon under the name of its vice director of public relations for the Asia-Pacific region, Thong Poh Wah, Huawei, whichsupplies equipment to a number of Australian telcos and othercompanies, denied the claims. The company employs 230 staff inAustralia.

"Huawei is privately held and 100 per cent owned by itsemployees, administered through an employee share ownership plan,"the company said. "No other organisations, including thegovernment, army or business hold stakes in Huawei."

Referring to The Australian's report that Huawei founder RenZhengfei had a military background, Huawei pointed out priormilitary service was common amongst many North American andEuropean business leaders.

"Huawei only manufactures telecom equipment for commercialpublic use and its main customers include 35 of the world's top 50telecom operators," the company said, noting sales related to theChinese government accounted for only 0.5 per cent of its income inthe 2007 year.

"Before Huawei can work with those companies, it must meet astrict auditing process that reviews the company's strategicplanning, process, management system, quality control and humanresource," the statement said.

Shadow Communications Minister Nick Minchin today claimed TheAustralian's report contained "potentially very concerningrevelations". Australians needed to be assured the NBN was free ofany potential for cyber-espionage, he said.

Talkback Most Recent of 6 Talkback(s)

  • India and The Bahamas
    are two other countries who also didn't feel
    comfortable with Huawei. Hope they do a through due diligence.
    ZDNet Gravatar
    Gnutella
    22nd Dec 2008
  • RE: Huawei denies 'ludicrous' espionage claims
    I think the same could be say of IBM and its deals with the U.S. Department of Defense. The double standards by the west when it comes to Russia or China are outrageous.
    ZDNet Gravatar
    berlindsucks
    22nd Dec 2008
  • No double standard at all, merely looking out for self interest.
    A foolish position considering how rich corporations hold the real power in America. The DoD doesn't control IBM. Any pressure put on by the U.S that hampers IBM's or any American companies ability to generate profit would result in that company filing an immediate lawsuit and a media frenzy to follow. China and Russia on the other hand control the media, censor the news , and run a closed society. They, like the gansters of old allow companies to operate in their country. Run afoul of their regime however, and they'll quickly find themselves out of business and possibly jailed.
    ZDNet Gravatar
    vcapo
    23rd Dec 2008
  • RE: Huawei denies 'ludicrous' espionage claims
    The fact of the matter is that the Chinese Army has a cyberwar unit and it's very own training manuals detail specific attack scenarios against the west. Additionally, repeated attacks and intrusions occur every single day against our nations infrastructure. Any company providing technology to the west with Chinese or Russian ties has to be closely scrutinized. To ignore the 800 pound gorilla in the room is only "ludicrous" move I see.
    ZDNet Gravatar
    vcapo
    23rd Dec 2008
  • RE: Huawei denies 'ludicrous' espionage claims
    I see nothing wrong with this form of free enterprise. If a company is stupid enough to ignore due diligence and public relations concerns, they deserve to have their networks compromised and their business destroyed by public scandal. Companies who screw their clients get away with it all the time. It's why we have risk managers. Because if you are always honest, you miss out on business growth. And the public doesn't know the inside details. But so long as promises are delivered superficially, the customers don't care. Short sighted mentality encourages rapid stock growth, business expansion and perpetuates a false sense of prosperity much like a drugs and denial. Things go up and down all the time.
    ZDNet Gravatar
    huangshi
    25th Dec 2008
  • RE: Huawei denies 'ludicrous' espionage claims
    It has become a trend among domestic firms of a country to quickly speculate about "potential" connections among foreign enterprises and their respective security and intelligence agencies, thereby making a stronger case for themselves. And dare I say, it is an easy sell in today's post 9/11 era.
    ZDNet Gravatar
    falcon3680
    25th Dec 2008

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