Apparently, the government is are worried about Chinese interference and hacking although Beijing has dismissed this as an “excuse” to tilt the playing field against a Chinese firm.
The move, following advice from security agencies, signals a hardening of Australia’s stance again China which soured over Canberra’s allegations of Chinese meddling in Australian politics.
The government said that national security regulations typically applied to telecom carriers would now be extended to equipment suppliers.
Firms “who are likely to be subject to extrajudicial directions from a foreign government” would leave the nation’s network vulnerable to unauthorised access or interference, and presented a security risk, the statement said.
It did not name Huawei, but an Australian government official said the order was aimed at Huawei and precluded its involvement in the network.
Huawei’s Australian arm, which strenuously denies it is controlled by Beijing, said on Twitter that the action was an “extremely disappointing result for consumers”.