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China, telecommunications and national security collide
China's largest telecommunications company has a "trust issue."
The Australian government did not specify why it doesn't trust Huawei.
Mark has been analyzing the company, and says there are at least three big reasons for Australia and other nations to be cautious about doing business with Huawei:
- It has a history of stealing intellectual property.
- The company has strong ties to China's military and political leadership.
- Security analysts are worried Huawei's equipment could contain "backdoors" that can be used for espionage.
But the problem is bigger than Huawei. Telecommunications networks are a natural target for espionage, and it's extremely difficult, if not impossible, to prove that a network is secure.
Mark says the key is to ensure that your supply chain is clean and that all the vendors in the chain are trusted agents.
As President Ronald Reagan once said, "Trust, but verify."