Global Geopolitical Series: New Zealand becomes latest western country to block Chinese communications equipment over security concerns

New Zealand became the latest western country after the United States and Australia in shunning Chinese telecommunications equipment over national security concerns. New Zealand's largest telecoms carrier Spark said on Wednesday that the country's intelligence agency had barred it from using equipment provided by China's Huawei in its 5G network as it posed significant national security risks. Spark announced it is legally obliged to abide the intelligence communities’ assessment and buy materials from other sources. The connection between Huawei and the Chinese communist party has been the major source of concern.

Spark said that the decision by the intelligence community was disappointing and it is currently looking at the detailed reasoning to decide next move.

The intelligence community’s decision came after the United States asked its allies to shun Chinese telecommunications equipment maker Huawei earlier this month and after Australia announced its own looming ban against Huawei. New Zealand is a member of the Five Eyes intelligence alliance, which also includes the United States, Britain, Canada, and Australia.

With the western countries following President Trump in toughening stance against China and its alleged malpractices, more pain is in store for China’s economy as well as state-owned companies.