Australia bans zte and huawei from working on 5g network development

ZTE and Huawei are not having the best year in terms of their relationship with the United States. The two Chinese companies have several legal problems with the country, something that seems to spread to other markets. Since the Australian government prohibits the two companies to work on the development of 5G networks in the country. A controversial decision, if we consider that they are two leading companies in this regard.

Australia bans ZTE and Huawei from working on 5G network development

The reasons given have been related to security. They are concerned about the compromise this would bring to Australia's security.

Problems between Australia, Huawei and ZTE

The Australian government believes that current protections may be insufficient in the development of this new 5G network, which introduces improvements and new technology. Therefore, they make the decision not to allow ZTE and Huawei to take part in it. It has been Huawei that has announced this through a message on their social networks, showing their discontent with this decision of the country's government.

The United States government's ban on using products from the two brands may have had something to do with it. The American government recently made this decision because they suspect that companies could obtain data for the Chinese government.

ZTE has not yet made a statement, although seeing the bad year the company is having in its relations with governments, they may prefer to focus on other issues. We will see if this decision is final, and if there are more reactions or other countries that follow these steps.

CNN Money Font