Chinese technology giant Huawei has warned Australia could be in breach of its international trade obligations if it adopts national security proposals that could allow the government to exclude ''certain foreign technology and service suppliers'' from the market.
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Huawei was controversially banned from involvement with the NBN amid fears the privately owned, China-based company would compromise Australia's national security.
The company, which employs 150,000 staff in 140 countries, now fears it will be further sidelined from the Australian market by proposed new national security measures.
Huawei's Australian chairman, retired navy rear admiral of 36 years John Lord yesterday told a parliamentary committee in Canberra that the company had still not been told why it had been ruled out of the NBN.
But Mr Lord and business development director David Wang acknowledged that anti-Chinese sentiment could count against the company's desire to build wireless or fixed-line networks in Australia in future.
MPs quizzed the pair on Huawei's relationship with the ruling Communist Party of China, whether communist cells formed part of the management structure and whether the company had ever installed ''back door'' provisions in computer hardware that would allow hackers' access later. The pair flatly denied the company had installed spyware in its networks and technology, and Mr Wang said Huawei was being discriminated against.
''In China we're considered capitalist; elsewhere in the world we're considered communist,'' he said.
''The challenges that we're facing are, a lot of challenge is from the misunderstanding about Huawei's ownership, of the relationship with Chinese government.
''Again we would say, we are doing this global wide, in 140 countries with 400 telcos … we have a very good record.
''You can't assume domestic suppliers are safer than overseas.''
The company has built NBN networks in eight countries, and runs telecommunication networks in other countries, including Iran.
''By barring unilaterally some companies and their technologies Australia will fall behind in the advantages of the new digital economy,'' Mr Lord said.
''Imposing country of origin restrictions could raise concerns about Australia's international commitments.''
Parliament's national security committee is considering a range of proposals to amend to security laws, including the contentious suggestion that Australians' mobile and phone data be retained for up to two years.
with Lucy Battersby
