China's 'National Intelligence Law' one reason for Huawei's 5G block

Friday, 30 November 2018

A staff member uses a laptop computer at a display for 5G wireless technology from Chinese technology firm Huawei at the PT Expo in Beijing. New Zealand's international spy agency has banned mobile company Spark from using Huawei equipment in its planned 5G upgrade, saying it posed a 'significant network security risk.' (AP Photo/Mark Schiefelbein, File)

A Chinese 'National Intelligence Law' passed last year is understood to be one of the obstacles to technology giant Huawei being allowed to help build a 5G network in New Zealand.

It is understood Spark has now received a full briefing from the Government Communications Security Bureau (GCSB) on why it declined a proposal from Spark to use Huawei to help build its 5G network.

Spark wants to have the 5G network up and running in 2020.

China's National People's Congress passed the National Intelligence Law in June last year.

* Show us what we've done wrong, says Huawei

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The Canadian government said the law provided official sanction for the intelligence services to 'compel cooperation' from Chinese citizens.

It is understood the law is being interpreted to mean that any citizen or company linked to China can be compelled to engage in espionage or to collect intelligence anywhere in the world.

Huawei has been approached for comment.

Spark has said its 5G plan would have seen technicians employed by Huawei install 5G network access equipment in New Zealand.

The National Intelligence Law is not believed to be the only obstacle facing Huawei, with Spark likely to have also been presented with confidential material.

Although Huawei has been deeply entrenched in New Zealand telecommunications for several years, supplying network equipment to Spark, 2degrees, Vodafone and Chorus, it is understood there are particular sensitives over the next generation in mobile technology.

These are believed to centre on the concern that people's personal information could not easily be 'ring fenced' within the core of the new network – which Huawei is not competing to supply – because of the particular characteristics of 5G.

The briefing means the ball is now back in Spark's court.

Spark spokesman Andrew Pirie said it was still in dialogue with the GCSB.

But the next step will be for it to decide whether to explain how it could 'prevent or mitigate' the risks the GCSB has identified, or abandon its proposal to source equipment from Huawei.

If Spark did attempt to address the GCSB's concerns, the GCSB would then have to decide whether to refer the matter to the Minister responsible for GCSB, Andrew Little.