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Chinese tech giant calls for cyber cooperation

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Former Victoria premier John Brumby and navy veteran John Lord are board members of Huawei Australia, along with former foreign minister Alexander Downer.

Former Victoria premier John Brumby and navy veteran John Lord are board members of Huawei Australia, along with former foreign minister Alexander Downer. Photo: Wayne Taylor WMT

The founder of Chinese telecom equipment giant Huawei, which has faced security concerns in the US and Australia, is calling for global cooperation to improve data protection.

Ren Zhengfei, in a rare public appearance at an economic forum on Friday, did not mention the controversy surrounding Huawei. But he warned data would be "vulnerable to attack again and again" because technology would develop faster than security. He gave no details of possible joint measures.

"Cyber security is a common issue that the whole industry has to face," Ren said at the St. Petersburg International Economic Forum. "We must join hands to proactively address this issue."

Huawei founder Ren Zhengfei has called more co-operation on data protection.

Huawei founder Ren Zhengfei has called more co-operation on data protection.

Huawei Technologies, which Ren founded in 1987, has faced suspicions of being controlled by China's ruling Communist Party or being a front for the military. The company has denied it is a security threat and says it is owned by its employees.

Huawei was barred from bidding for work on the planned Australian high-speed national broadband network (NBN) due to concerns about cyber attacks traced to China. The Prime Minister Julia Gillard defended the move, but one of the company's board members, former Foreign Affairs Minister Alexander Downer, claimed the concerns were "absurd".

Later, Huawei claimed it might be suitable for some parts of the $37 billion project.

The company had to unwind its purchase of a US computer company, 3Leaf Systems, last year after it failed to win approval from a government security panel.

The Australian ban highlighted concern about Beijing's cyber warfare efforts, a spate of hacking attempts aimed at Western companies and the role of Chinese equipment providers, which are expanding abroad. A US congressional panel has said it will investigate whether allowing Huawei and other Chinese makers of telecoms gear to expand in the United States might aid spying by Beijing.

Huawei works with 45 of the 50 biggest global phone companies and says it has won the industry's trust. It publicly invited the US government last year to investigate it in order to allay security concerns.

Ren, a former military engineer, said the industry must rapidly develop reliable cyberspace technology to support development of education and social skills.

"It is unfeasible to establish an absolutely impenetrable security assurance system that can keep data flowing securely within the networks (pipes) at all times," Ren said, comparing the flood of data to the global inundation in the Hollywood disaster movie 2012.

"Data floods will never go away," he said. "No matter how well we design and reinforce security assurance systems, they will be vulnerable to attacks again and again."

Ren is one of China's most enigmatic business figures, rarely appearing in public and never talking to reporters. Forbes magazine has estimated his net worth at more than $US1 billion.

Huawei reported profit of 11.6 billion yuan ($1.8 billion) last year on sales of 209.9 billion yuan ($32.4 billion). Profit fell 53 per cent from 2010, which Huawei blamed on weak global demand and the strength of China's yuan against foreign currencies.

After building its business on making switching equipment that forms the backbone of phone and computer networks, Huawei is trying to become a business and consumer brand. It launched a campaign this year to sell smartphones under its own brand in the United States.

Ren said Huawei plans to expand investment in Russia to take advantage of the country's background in technology. Huawei already has a development lab in Moscow, one of 23 around the world, including in Silicon Valley.

"Russia has a very solid foundation in the military industry, rich assets of wisdom and plenty of talent," Ren said. "This foundation endows Russia with unique advantages in developing the information industry."

AP Digital

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1 comment so far

  • China has an incredibly different corporate culture to most other countries. I'd be incredibly cautious about adopting 100% Chinese designed and fabricated products. I think the move by the NBN was about mitigating risk and that's not absurd. Any country that conducts international trade, has total control over its currency-value and administers lethal injections to a 7 month old foetus's because the mother didn't fill in the paperwork should simply be boycotted. All trade in and out of China and other countries should be subject to the same scrutiny, governance and standards that we have in Australia. If the country falls below our standard should have its price loaded.
    This should at least include a tariff for carbon, environment, health and safety. If the company producing the product doesn't meet Australian Standards then this product should attract a tariff. This will make Australian products more competitive and levels the playing field for industry. Australian Wholesalers won't like it but then they're the one's convincing buyers and consumers to shift from locally made products to the cheaper international alternative.

    Commenter
    PeteGeek
    Date and time
    June 26, 2012, 3:52PM

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