Category: China

  • Turkey says returning to normal in ties with China

    Turkey says returning to normal in ties with China

    Foreign Minister Ahmet Davutoğlu met with Nur Bekri, chairman of the Xinjiang Uighur Autonomous Region, in Urumqi on the first day of his visit to China.
    Foreign Minister Ahmet Davutoğlu met with Nur Bekri, chairman of the Xinjiang Uighur Autonomous Region, in Urumqi on the first day of his visit to China.

    Turkey’s willingness to build a strategic bilateral cooperation with China should not be regarded as an exceptional move, Foreign Minister Ahmet Davutoğlu has stated, arguing that, on the contrary, such a move is a sign of normalization. Davutoğlu departed Ankara on Wednesday for a six-day official visit to China, with Kashgar, where Muslim Uighurs make up the vast majority of the population, being his first stop during the visit.

    Turkey already has exemplary relations with Western countries, and its bilateral relations with globally rising powers such as Brazil, China, India and Russia have been expanding recently, Davutoğlu said, while speaking to a group of journalists on board a plane en route to Kashgar from Ankara.

    “The basis of our entire policy is the normalization of history. Our relations being good with China at the moment is not something abnormal; it was abnormal to have bad relations,” Davutoğlu was quoted as saying in apparent response to comments displaying developing ties between Turkey and China as proof of a so-called axis shift from the West to the East in Turkish foreign policy.

    With his conception of the “normalization” of history, Davutoğlu underlines the importance of eliminating Cold War and colonial abnormalities. “[The] end of the Cold War — [Francis] Fukuyama claimed [it] was the end of history. I claimed history had begun because there was an abnormality [during] the Cold War and that history will try to normalize it,” Davutoğlu said at the time.

    Turkey’s developing relations with these global powers are not emerging at the expense of neglecting its cooperation with the West, Davutoğlu said. “They should not consider these relations as an alternative [to existing relations with Western countries],” he stressed, while underlining that Turkey has been continuing its intense diplomatic contact with Western powers as well.

    Foreign Minister Ahmet Davutoğlu met with Nur Bekri, chairman of the Xinjiang Uighur Autonomous Region, in Urumqi on the first day of his visit to China.

    “My trip to Brussels is no longer news,” the minister said and added that US President Barack Obama and Prime Minister Recep Tayyip Erdoğan were meeting six or seven times a year while the US and Turkish leaders met at most two times a year a decade ago.

    Davutoğlu’s visit to China came weeks after Chinese Premier Wen Jiabao’s visit to Turkey during which the two countries took a landmark step in developing their bilateral ties, which they have begun to define as a “strategic partnership.”

    During the visit, China and Turkey agreed to use their own currencies, rather than dollars, in bilateral trade, while Wen and Erdoğan signed eight deals in areas including transportation and trade. In October 2009 Erdoğan announced that Turkey and Iran had prepared a legal framework to transition to agreements in national currencies. According to Davutoğlu, Ankara’s policy that insists on using diplomatic means to resolve the dispute over Iran’s nuclear program has increased China’s interest in developing bilateral relations with Turkey.

    “They have noticed the big potential,” Davutoğlu said, arguing that maintaining stability in the Middle East would be highly beneficial, particularly for Turkey and China.

    Ankara and Beijing have both increased their commercial ties with Iran, signing deals on oil and gas fields to the frustration of Western powers, who suspect the Islamic republic of seeking to build a secret nuclear weapons program, an allegation the latter denies. China reluctantly backed the last round of UN sanctions on Iran while Turkey, along with Brazil, voted against the sanctions. Both China and Turkey have defended their trade with Iran as legitimate.

    Bilateral cooperation in the military field is a significant aspect of relations between Turkey and China. In September, they held joint aerial exercises at Turkey’s training range in the Central Anatolian town of Konya, where Anatolian Eagle exercises are taking place between NATO allies and friendly countries. Some eyebrows were raised following the exercises, with reports suggesting that the US and Israel were watching with concern the growing military cooperation among Turkey, China and Iran.

    Increasing support to Xinjiang

    Davutoğlu told reporters that his visit to China is part of an action plan jointly drawn up by Turkey and China following the violent clashes between local ethnic-Turkic Muslim Uighurs and the dominant Han Chinese community in June 2009. Calling the clashes, which came days after President Abdullah Gül’s landmark visit to this country last year, as a tough crisis, Davutoğlu said the crisis had now been overcome, with high-level visits taking place between the countries at a regular pace. The clashes that broke out in July in Urumqi left 197 dead and several hundred wounded, according to official Chinese numbers.

    Davutoğlu, who proceeded to Urumqi following his visit to Kashgar, highlighted the symbolic importance of his itinerary. According to him, better relations between Turkey and the Chinese administration will help Turkey increase its contribution to people living in the Xinjiang Uighur Autonomous Region, populated by ethnic Turkic Muslim Uighurs.

    With Ankara and Beijing planning to have at least one leader-level visit per year, Erdoğan will pay an official visit to this country next year, Davutoğlu announced.

    29 October 2010, Friday

    SERVET YANATMA/OSMAN EROL  KASHGAR/URUMQI

  • Turkey Analysis: Is Ankara Now in a “Radical Axis of Evil”? (No.)

    Turkey Analysis: Is Ankara Now in a “Radical Axis of Evil”? (No.)

    Ali Yenidunya in EA Middle East and Turkey

    turkish airforce

    Our question for today: is Turkey still a pro-Western country looking forward to entering the European Union. Or has Ankara, “unfortunately, joined the radical axis formed led by Iran and supported by Syria, Hamas and Hezbollah”.

    Let’s start with a statement by Israeli Prime Minister Netanyahu on 11 October:

    We also had wonderful, friendly relations with another country, with military cooperation, with full diplomatic relations, with visits by heads of state, with 400,000 Israeli visitors to that country. That country is called Turkey.

    What prompts Netanyahu to use the past tense? Is it because Turkey ejected Israel from a planned international air force exercise or because Turkey and Syria held joint military exercises in late April? Is it because Turkey’s Prime Minister Recep Tayyip Erdogan told off Israeli Prseident Shimon Peres over Israel’s bloody war in Gaza in World Economic Forum in Davos in January 2009 or because Turkey did not stop the Freedom Flotilla which tried to break the Gaza siege?

    Is it because Turkey conditionally accepted NATO’s planned anti-missile system, saying that  it should not be presented as a defence against Iran? (On Friday, Turkey’s Foreign Minister Ahmet Davutoglu said: “We do not perceive any threat from any neighbour countries and we do not think ouur neighbors form a threat to NATO.”) Or is it because of a joint Turkish-Chinese air-force exercise held two weeks ago?

    If I may offer an alternative to the “radical axis” thesis at this point….

    Ankara’s new foreign policy under the Justice and Development Party is not a revisionist manoeuvre but a reflection of its rising autonomy due amidst Washington’s decreasing power — from Afghanistan to Pakistan to Iraq to the rest of the Middle East — coupled with regional powers taking more initiative, economically and politically. Ankara, like its regional neighbours, wants to get benefit from this international conjuncture.

    And in order to become a stronger regional power, Ankara had to give up its discourse based on antagonism towards its neighbours (no need even to mention the need to solve its Armenian, Kurdish and ecumenical Greek Orthodox problems). The next step was to increase trade, boost bilateral relationships, build trust with old enemies, and raise your credibility with statements showing you are standing with the “weak”. Erdogan did this for Gazans and for Uighur Turks in northwest China. (How fast do we forget that Erdogan blamed a Chinese official of committing a “a near genocide” after the killing of 184 people last year in the conflict?)

    Some other facts: Turkey signed eight new trade agreements with China in early October, bypassing the US dollar for direct business between the Turkish Lira and Yuan. The goal is to achieve a trade volume of $100 billion in ten years from the current amount of $17 billion. As for the “existential threat” of Iran, the trade volume between Iran and Turkey was $1.4 billion in 2000 but it was $8 billion in 2008. (And of this, only $236 million in 2000 were Turkish exports; by 2007, the figure was $1.3 billion.) Turkey is now carrying out around 14 to 15% of its trade with its neighbours as opposed to 3 to 4% in the previous decade.

    As a champion of privatisation, Turkey is still a relatively “liberal” — perhaps neo-liberal — country, both economically and politically. This is still the same Ankara trying to be a part of European Union, following the adjustment of domestic law to the harmonization code of the EU in 2001 and in 2004. That is not to say Ankara is doing a great job fulfilling all of the democratic criteria to become a member state of the EU, but it has a pro-Western identity.

    I call my closing witness. Who would like to see a stronger Turkey (with reduced tension with Israel, of course) that has close relationships and is diplomatically and economically capable of holding negotiations with Iran, Syria, Afghanistan, and Pakistan?

    Talking to BBC’s “Record Europe”, US Foreign Secretary Hillary Clinton said: “Turkey is becoming a greater global and regional power. Its economy is growing dramatically. They are extending to countries and try to be effective on their own as well as with us.”

    Increasingly autonomous? Yes. Radically evil? No.

    Article originally appeared on EA WorldView (http://www.enduringamerica.com/).

  • Chinese, Turkish scholars discuss bilateral cooperation

    Chinese, Turkish scholars discuss bilateral cooperation

    ANKARA, Oct. 18 (Xinhua) — Chinese and Turkish scholars gathered at a political forum in the Turkish capital of Ankara on Monday to discuss their economic ties, cooperation in the Middle East and coordination within the Group of 20 (G20).

    Wang Zhongwei, deputy director of China’s State Council Information Office which sponsors the forum, said China and Turkey, both G20 members and emerging economies, share interests in such major issues as reforming international financial system and tackling climate change.

    “We should further coordinate and cooperate in those issues. That’s in the interests of the two countries’ people and benefits regional and world peace and stability,” Wang said in an opening speech.

    Fatih Ceylan, deputy undersecretariat of the Turkish Foreign Ministry, said China and Turkey hold similar views on many regional and international issues and have great potential for better cooperation.

    As a non-permanent member of the UN Security Council, Turkey has worked together with China very well in issues related to Afghanistan, the Palestinians and Iran, he said.

    Wang Zhongwei (2nd R), deputy director of China's State Council Information Office, Chinese Middle East envoy Wu Sike (1st L), Fatih Ceylan (2nd L), deputy undersecretariat of the Turkish Foreign Ministry, attend a political forum, a part of a large-scale cultural event termed "Experience China in Turkey", in Ankara, Turkey, Oct. 18, 2010. (Xinhua/Zheng Jinfa)
    Wang Zhongwei (2nd R), deputy director of China's State Council Information Office, Chinese Middle East envoy Wu Sike (1st L), Fatih Ceylan (2nd L), deputy undersecretariat of the Turkish Foreign Ministry, attend a political forum, a part of a large-scale cultural event termed "Experience China in Turkey", in Ankara, Turkey, Oct. 18, 2010. (Xinhua/Zheng Jinfa)

    Zhang Yuyan, a scholar with the Chinese Academy of Social Sciences, suggested China and Turkey uphold the principle of ” common but differentiated responsibility” on climate change and strive to increase the representation and voice of developing countries in international institutions.

    Kamer Kasim, vice president of Turkey’s International Strategic Research Organization, said it’s good for both China and Turkey to increase cooperation in security, energy, tourism and other areas.

    The forum was a part of a large-scale cultural event termed ” Experience China in Turkey”, which was held in Ankara and the Turkish city of Istanbul.

    The event, starting on Sunday and to last till the end of the month, covers nine major activities, including Chinese-Turkish political and economic forums, Chinese movie and television weeks, Chinese cuisine festival and exchanges between journalists and writers.

  • China Courts Turkey

    China Courts Turkey

    China, whose relations with Turkey went through a period of tension last year following the Turkish condemnation of the  atrocities allegedly  perpetrated by the Chinese on the Uighurs in Chinese-controlled Xinjiang in July , has undertaken measures to repair the relations and seek Turkey’s support for the pacification of Xinjiang. The Munich-based World Uighur Congress (WUC), headed by its President Mrs. Rebiya Kadeer, enjoys some support in the political class and the public in Turkey. It calls for independence for Xinjiang under the name Eastern Turkestan. It is not a fundamentalist organisation and does not suppoprt the Islamic Movement of Eastern Turkestan , which is an associate of Al Qaeda and the Pakistani and  Afghan Talibans.

    Even before tension and misunderstanding arose in the relations between China and Turkey following the alleged suppression of pro-WUC demonstrators by the People’s Liberation Army (PLA) in Urumqi in July last year, the two countries had been negotiating for a joint air exercise by their air forces  in the Turkish air space. They did not allow the misunderstanding and tension over the alleged suppression of the Uighurs to disrupt these negotiations.

    The return of normalcy in the bilateral relations was marked by two significant events in September and October, 2010. The first was the holding of the joint air exercise by the Air Forces of the two countries. According to Turkish press reports, the joint air exercise  took place  between September 20  and October 4 from the Konya air base in Turkey’s central Anatolia region.T he Turkish Air Force flew F-4 Phantom fighters, used  by the US during the Vietnam war, while China flew Russian-built SU-27s. The Chinese planes refueled in Pakistan and Iran while on their way to Turkey and in  Iran on their way back to China. The Turkish media reports also spoke of the joint development of a surface-to-surface missile by  China and Turkey.

    The second significant event  was the official visit of Prime Minister Wen Jiabao to Turkey while on his way back to China after  official bilateral visits to Greece, Belgium and Italy and after attending the Asia-Europe summit at Brussels. Wen arrived in Ankara on October 7 — three days after the joint air exercise was over — and stayed for three days. His visit was marked by anti-China demonstrations by Uighurs and their local supporters.  While the demonstrations were allowed  by the Turkish authorities, they reportedly rejected a request from Mrs.Kadeer to visit Turkey on October 8 to participate in the demonstrations against China. She has been quoted by media reports as saying that the WUC would have no objection to Turkey improving its relations with China, provided the objective was to make Beijing recognise and respect the human rights of the Uighurs. She cautioned against any action which could facilitate the Chinese suppression of the Uighurs.

    In an interview with the Anatolia news agency, she said:”I have been disappointed over the fact that Turkey would receive Chinese Premier Jiabao on October 8.Following the incidents of July 5, 2009, thousands of Uighurs have been arrested (by Chinese officials) and we have not heard from them since then. After July 5, the Chinese Government has been exercising  great pressure on the Uighurs and land belonging to the Uighurs has been taken away from them by the Chinese authorities. Premier Jiabao’s visit to Turkey would provide an opportunity to Turkey to ask about the Chinese pressure put on the Uighurs and encourage the Chinese to end the pressure. The Uighurs are in a battle of death and survival. We are concerned with the efforts of the Chinese Government to change the views of the Turkish people.
    I am seeking for ways to be able to visit Turkey on October 8, the day when Chinese Premier Jiabao will be in Turkey. I will try to convey, with the Turkish people, our demands from the Chinese Premier Jiabao. I expect the Turkish Government to provide me the same privilege that they have granted to the Chinese Premier Jiabao. I wish to be in Turkey in order to tell the realities to the Turkish people.”

    6. This was the first visit by a Chinese Prime Minister to Turkey in eight years. In a despatch dated October 9 from Ankara, the Chinese Government controlled Xinhua news agency reported that  Wen  and the  Turkish Prime Minister Recep Tayyip Erdogan had agreed to upgrade their bilateral ties to the level of a strategic relationship of cooperation.Wen said he and Erdogan reached broad consensus during the talks and added that the decision to set up the strategic cooperative relationship would have an important effect on world peace and development. Wen pointed out at a joint press conference with his Turkish counterpart that China and Turkey both faced the threat of the three evil forces of terrorism, separatism and extremism and shared common interests in safeguarding the integrity of territory and sovereignty. He said China would continue to deepen mutual political trust and take active measures to promote trade with Turkey. China attached great importance  to Turkey’s  influence in regional and international affairs. China would encourage investment by Chinese enterprises in Turkey and facilitate cooperation in various economic fields, such as power projects, bridge construction and the financial sector, Wen said.

    The Chinese have been providing many lollipops to Turkey in order to dissuade it from supporting the Uighurs. Among these lollipops are:
    A proposal  for the  joint construction of 4,500kms of railway in Turkey and for the construction of an oil pipeline to Turkey from Iran. Chinese companies are already involved in the construction of railroads for two high-speed train links.

    The value of the bilateral trade during 2009 amounted US $14.2bn  – $12.6bn of which consisted of Chinese exports. Thus, China has been the major beneficiary of the trade. The two Prime Ministers agreed to raise the value to US  $50 billion by 2015 and US  $100 billion by 2020. They also agreed to use the national currencies to carry out the trade. Turkey has now similar arrangements with Russia and Iran.

    Though promotion of economic relations and a strategic partnership were projected as the main objective of the visit of  Wen to Turkey, the Uighurs believed that an important purpose was to seek the support of Turkey for the pacification of Chinese-controlled Xinjiang and for  the political neutralisation of the WUC. According to Uighur sources, Pakistan had played an active role in bringing Turkey and China together despite the protests in Turkey last year over the suppression of the Uighurs. While the Uighurs are even prepared to understand the measures for the promotion of  economic relations, they are surprised by Turkey’s agreeing to a joint air exercise with the PLA (Air Force) despite the role of the PLA (Army) in the suppression of the Uighurs.

  • Elephant and Dragon

    Elephant and Dragon

    indian elephant chinese dragon

    BALAJI CHANDRAMOHAN

    It is understandable and predictable that Asia’s two giants – India and China – should be gearing up for a showdown somewhat similar to the East-West showdown of the Cold War. Given both countries’ growing economies, and given the waning influence of the West in global affairs, India and China are increasing their foothold in distant corners of the world through trade, investment, bilateral treaties and security relationships.

    In this classic ‘great power’ rivalry, China wishes to win by keeping India in low-level equilibrium – for instance, by denying permission to an Indian lieutenant-general posted in the state of Jammu and Kashmir to visit China. The officer in question had intended to travel to China in August of this year for a high-level defence exchange between the two countries.

    What is more, if media reports are to be believed, then policy-makers in New Delhi are losing sleep over the fact that 7,000 to 11,000 Chinese troops are present in Gilgit in Pakistan-occupied Kashmir – something that the Indian government is trying to verify, although Pakistan’s envoy to Beijing has denied the reports. The reports say that People’s Liberation Army soldiers entering Gilgit-Baltistan are expected to work on the railroad and on extending the highly strategic Karakoram Highway – a clear sign that China wishes to extend its influence in the oil-rich gulf region. There are also reports about a six-month visa to visit China having been issued Paresh Barua, Commander-in-Chief of the United Liberation Front of Asom (ULFA), a militant organization based in Northeast India.

    Reacting to China’s aggressive posture, the Government of India recently held a meeting of the Cabinet Committee of Security, chaired by Prime Minister Manmohan Singh. New Delhi’s envoy to Beijing, S. Jaishankar, briefed the Committee on the current state of Sino-Indian relations.

    Following the Bush presidency, given the general reluctance of the Obama administration to ‘contain’ China (let alone to engage on a sustained basis in Asia at large), China has decided to have a ‘free go’ throughout the world. This ‘free go’ has necessitated the establishment of a firm Chinese foothold in the Asia-Pacific region, from which it can broaden its sphere of strategic influence even to Africa, Latin America and Europe. India acts as a distinct challenger in this respect. With a population of more than one billion people, a growing economy and supple latent power, India is a clear leader in the affairs of South Asia. It has also increased its influence in Southeast Asia through its ‘Look East’ policy. In fact, East Asian countries like South Korea and Japan are more inclined to cooperate, and look for active strategic partnership, with India rather than with China. India has also started to spread its wings through active diplomatic ventures in Africa through the Indo-African forum, and in the South Pacific Islands through the Pacific Islands Forum. Furthermore, India has initiated more active dialogue with its diasporic populations through the annual Pravasi Bharatiya Divas festival that fosters better relations between expatriate Indians and Indians living in India. Indeed, the Indo-American civil nuclear deal that was sealed during the Bush administration would not have happened without the active lobbying of Indo-Americans. This has pushed India to initiate a ‘Forward Policy’ in its diplomacy.

    All of this has irritated Beijing in that it has understood that, to clip the wings of the spreading India, China must first ‘box-in’ India in South Asia. That is precisely the strategy of Beijing in aiding Pakistan to follow an aggressive posture in its diplomatic relations with India. With India being distracted in Pakistan, and with the US distracted in Afghanistan and Iraq, China can expand quickly in Asia; that is, it can clearly establish many more ‘strategic condominiums’ in the world. In this sense, China profits from its authoritarian and more monolithic decision-making processes and culture in respect of international relations – as compared with the more reactive processes of major democratic states like India and the US. India, for its part, also suffers from the general dearth of strategic culture and acumen within its political class – a weakness compounded by the absence of emphasis on foreign policy in day-to-day media discourse in India. Though Manmohan Singh is not a classical professional politician, and while he could be considered of a statesman of the highest order (a later article with GB will deal with his declining popularity in India, and the reasons thereof), the general Indian policy inclination to look inward as a matter of dominant priority has manifestly prevented him from engaging with the international more actively.

    Take the case of Iran. The US is trying to engage with Iran through China, as India, the traditional ally of Iran, is left in the cold and dark. The abandonment of the foreign policy front by the political class in India has, as a rule, meant that major chunks of strategic decision-making on foreign policy have fallen to India’s army men. In this respect, India has decided to play to its strengths – understood as it is that India and China are both continental and naval powers. To counter China’s much-touted ‘Strings of Pearl’ strategy, India has decided to pursue active ‘naval diplomacy.’ China’s ‘Strings of Pearl’ strategy includes building deep-sea naval positions on the southern coast of Sri Lanka in the once sleepy fishing town of Hambantota. Moreover, China has helped Pakistan to build a deep-sea port in the town of Gadara in Baluchistan. It has also started to court the littoral states in the Indian Ocean – the Maldives, Mauritius and Seychelles – and invested funds in these micro-states to boost economic prospects. In return, China has sought to allow its bases to continue to be stationed in these littoral states. As a part of its counter-strategy, India is sending its naval officers on a routine trip to these countries. There are regular exchanges between India and these states at the naval officer level. India is also establishing for the Maldives a network of radars that will help the island nation offset for the plain fact that it lacks a navy. (Traditionally, all great powers that aspired to control the Indian Ocean – Portugal, the Netherlands, Great Britain, the US and the Soviet Union – have required a base in the Maldives. The southernmost island of the Maldives, the Gan Island in the Seenu Atoll, served as a base for the British Royal Navy during WW2.)

    The Indo-China great power rivalry is the story of the first part of the 21st century – much like the rivalry between Great Britain and Germany was the dominant strategic dyad in the late 19th and early 20th centuries. This rivalry was classically described by John J. Mearsheimer in his book, The Tragedy of Great Power Politics. Wrote Mearsheimer: “Great powers behave aggressively not because they want to or because they possess some inner drive to dominate, but because they have to seek more power if they want to maximize their odds of survival.” Raw realism has been the forté of China’s conduct in world affairs since 1949 when the People’s Republic of China was established. For its part, India’s foreign policy has always flirted with moralism-cum-idealism. However, at the start of this new century, India had understood the importance of Realpolitik. Indian politicians are deft in conducting domestic politics – particularly in the area of alliance-building. They will need to show similar genius in world affairs if they are to counter China’s Dragon.

    Balaji Chandramohan is the Asia-Pacific correspondent of World News Forecast and Editor, Asia, with World Security Network. He is based in New Delhi and Wellington, New Zealand.

    , October 1, 2010

  • Spy fears as Chinese firm eyes NBN deal

    Spy fears as Chinese firm eyes NBN deal

    Maris Beck

    SECURITY experts are alarmed that a company with links to the Chinese military is bidding to supply equipment to the national broadband network, warning that the equipment could be used to spy or launch cyber attacks on Australian governments and businesses.

    The United States’ National Security Agency intervened to block Huawei Technologies’ bids to supply equipment to AT&T last year, threatening to withdraw government business if Huawei was chosen, The Washington Post reported.
    The company also has faced opposition from Indian and British intelligence agencies and Australian security experts are voicing similar concerns as Huawei seeks a slice of the $43 billion broadband roll-out.
    As the rate of cyber attacks on Australian interests intensifies, an intelligence expert at the Australian National University’s Strategic and Defence Studies Centre, Desmond Ball, said he didn’t want to sound alarmist ”but this is the highest order risk that I would see with regard to network vulnerability”.
    Bids by Huawei ”would have to be subject to the closest scrutiny but in the end it would be the government’s responsibility to reject such an involvement”.
    He said the cyber security debate focused on malicious software but more attention should be paid to hardware, which could carry digital trapdoors. Professor Ball said even the most secure cable systems were vulnerable.
    Over the next decade, he said, the US-China relationship would become the most likely source of major international conflict and Australia was a key ally of the US.
    Retired air commodore Gary Waters, a former senior official in the Defence Department who now works for consultancy firm Jacobs Australia, said the government appeared not to be taking cyber security seriously enough. ”The threat is increasing and I think this is one of those threats,” he said, adding that an independent private-sector audit would be required of any foreign company ”where alarm bells could sound on cyber security”.
    Alan Dupont, director of the Centre for International Security Studies at the University of Sydney, called for a robust discussion of the NBN’s security risks, saying: ”This is the critical piece of infrastructure that is going to go down over the next 30 or 40 years … there needs to be a broader discussion of the national security implications.”
    The executive director of national security policy at Verizon in Washington, DC, Marcus Sachs, said malicious software was easy to hide in hardware and any risk assessment should focus on how much a company could be trusted.
    Huawei lost a bid to supply the NBN’s ethernet aggregation equipment and the gigabit passive optical network in June. The contract went to Alcatel-Lucent, a French company.
    Huawei, the world’s second-largest telecommunications network provider, is believed to be preparing bids to supply almost all the equipment the NBN needs. Former Victorian minister Theo Theophanous is lobbying Canberra on Huawei’s behalf.
    Huawei emphasises that it is privately owned and has released details that show its employees own its shares. But links with the military are persistently reported. According to The New York Times, Huawei’s founder and chief executive, Ren Zhengfei, was an officer in the People’s Liberation Army. China analysts say loan credits from China Construction Bank, which were granted to small companies that wanted to buy Huawei equipment, were not necessarily repaid.
    Jeremy Mitchell, public affairs director for Huawei Australia, denied the company was linked to the Chinese government.
    He said Huawei guaranteed that its equipment was safe. Despite intelligence resistance, Huawei has supplied equipment to British Telecom. He said Optus and Telstra already used Huawei’s equipment and about 50 per cent of Australians relied on it. A spokeswoman for Communications Minister Senator Stephen Conroy said the government would ensure that ”national security and resilience issues are addressed in the design and operation of the NBN”.

    http://www.theage.com.au/technology/technology-news/spy-fears-as-chinese-firm-eyes-nbn-deal-20101016-16odq.html, October 17, 2010