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Huawei piles pressure on NZ government to make decision

Author
Newstalk ZB,
Section
Audio,
Publish Date
Wednesday, 30 January 2019, 9:22a.m.
Photo / NZ Herald

New Zealand faces an increasingly difficult decision on whether to allow Huawei technology in Spark's 5G network.

The government's spy agency blocked Spark's bid last year to use Huawei equipment in the 5G rollout due to national security concerns

Strategic analyst Paul Buchanan told Mike Hosking the New Zealand government will eventually have to pick sides.

"Huawei is lobbying hard and offering concessions, but what we have seen is hostage diplomacy which China engages in a lot of the time.

"New Zealand has yet to make a final decision, Huawai is piling the pressure on the government, it will be very interesting to see what the final outcome is."

The US has filed fresh criminal charges against the Chinese tech company.

The charges come as the two countries' leaders seek to end their months long trade war and with China's lead trade negotiator, Liu He, scheduled to meet with US officials in Washington in coming days.

Paul Buchanan believes the case is a massive blow to already tense US-China relations.

He says the charges will impact Huawei's global trade, which will spark a major backlash from China.

"This will have a massive impact on the global trade, and this is where the whole situation gets very political. The Chinese are not going to react well to this at all.

"This is all linked to the trade war we have seen raging on for the past year. The US Justice Department is operating independently which people will be keeping a close eye on."

Huawei is one of China's "national champions," an US$8.4 billion firm promoted and protected by the ruling Communist Party.

ON AIR: Mike Hosking Breakfast

6a.m. - 9a.m.