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'Widely misunderstood' Huawei attempts to put the record straight, vows more transparency

Rimin Dutt | Oct. 25, 2012
Huawei Australia chairman, John Lord, has gone into extraordinary detail about the company’s ownership structure and history in an effort to address concerns about security risks of the company’s products.

Huawei Australia chairman, John Lord, has gone into extraordinary detail about the company's ownership structure and history in an effort to address concerns about security risks of the company's products.

Addressing members of media at the National Press Club in Canberra, Lord stressed the Chinese telecommunications company operates as a private company with no ties to the Chinese government and "will never" allow its equipment to be misused by either the Chinese government or a third party.

Huawei is proposing a national Cyber Security Evaluation Centre to be established in Australia that could be a multi vendor-funded centre operated or overseen by security-cleared Australian nationals with complete transparency of all equipment, he said.

Huawei has offered up "complete and unrestricted access" to its software source code and equipment in an environment where national security is in question. He pointed to a similar effort in the UK where it is building UK's equivalent of the National Broadband Network (NBN).

"This is the exact process which has been established in cooperation with the Government of the United Kingdom, where Huawei has given British security agencies access to its our source code in a Cyber Security Evaluation Centre, allowing agencies to test the security credentials of Huawei equipment," he said.

According to Lord, the telecom equipment market should be a level playing field for all other telecom vendors. In a world with global technology supply chains, every major telecommunications equipment provider has a substantial base in China, he noted.

"In the interests of national security we believe all other vendors should be subject to the same high standard of transparency," he said.

Lord said Huawei's ownership has been especially misunderstood.

"It is best described in the Australian context as a co-operative," he said.

Huawei, founded in 1987 by its global CEO, Ren Zhengfei, has about 60,000 shareholders who are all Huawei employees - all Chinese citizens as per regulations for private company ownership. The company is looking at ways to compensate all of its 140,000 staff with an alternate shareholding structure.

Huawei has been mired by controversy in recent months with the U.S. House Intelligence Committee report that Huawei posed a security threat as the company's equipment could potentially be used for spying. It was also banned from participating in Australia's ongoing NBN for reasons that were not publicly-stated, noted Lord.

With regards to the Australian NBN, the company has accepted the government's decision.

"While we are disappointed, we have accepted the Government's decision and we have moved on. Of course we stand at the ready if the situation changes," he said.

With regards to the Congressional report in the US, Lord said the company had become a victim of political distractions in the US in an election year and hoped Australia would allow for a more "sober" debate on cyber security.

 

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