Popular Chinese smartphone maker, Huawei announced that the Australian government has banned it and fellow telecom firm, ZTE from providing 5G technology for the country’s wireless networks because of national security concerns.
“This is an extremely disappointing result for consumers,” the company said on Twitter.
On Thursday, the Australian government said national security regulations that were typically applied to telecoms firms would be extended to equipment suppliers.
Companies that were “likely to be subject to extrajudicial directions from a foreign government” could present a security risk, it said.
The United States has previously banned Huawei from bidding for government contracts because of fears over espionage. ZTE has also had its activity restricted in the US.
Under Chinese law, companies must co-operate with the intelligence services. Analysts therefore warn that equipment produced by firms such as Huawei and ZTE could be compromised.