Australia was the first to block Huawei from sharing its 5G network to global markets and an expert said the decision may come with a "cost." He also said the country took out one of the strongest competitors it can partner with.
"I am not sure about the actual numbers, but there will definitely be a cost in blocking Huawei," associate professor of engineering at Swinburne University of Technology in Melbourne, Philip Branch, said, as reported by China Daily.
Branch noted that the Chinese tech giant has been contributing to the process of setting standards for innovative technology in the global market. However, Australia led the way in blocking the company's efforts of sharing its technologically advanced solutions to the Aussie market. "By eliminating Huawei from the tender process, the other companies have a very strong competitor removed from them," he said.
While competition in the Australian tech market will be less fierce without Huawei, analysts pointed out that the Asian country may not experience benefits that the smartphone maker's high-end networks can offer.
Director of Corporate and Public Affairs for Huawei's Australia, South Pacific, and New Zealand branches, has repeatedly defended the company's integrity despite the government's refusal to provide reasons for the stoppage. He said security allegations against the firm "are simply not based on fact."
The Aussie government recently announced that it will push through with plans to transition to 5G networks. However, Huawei will not be part of the process. The block came after U.S. President Donald Trump's administration called on its allies to ban the Chinese 5G leader from participating in wireless network projects.
Despite the pressure, Huawei invited international agencies and governments to have a review of its technology in response to accusations that the company's solutions could be a threat to government security. Canada, the United Kingdom, and New Zealand have started looking into the firm's technologies but Australia refused.
Meanwhile, a political expert commented that Australia's handling of Huawei could result to a strain in the country's massive liquid natural gas (LNG) industry. Bob Carr, former NSQ premier and federal foreign minister, said on Thursday that if China and the United States strikes a deal involving the sector, Australia may be left out.
"There's an ineptitude and a naiveté about the way we do these things that is going to disadvantage us," Carr said, referring to the Aussie government's approach in blocking China's Huawei. He noted that the American government will definitely tell China to purchase LNG from them first before Australia and Beijing will most likely agree.
Carr further suggested that Australia did not stop Huawei from taking part in its 5G transition for security reasons. Instead, Carr said the decision was made "to please the U.S," adding that Trump may lock Australia out and put "America first" should the China-U.S. trade dispute end.
