China says Australia’s Huawei ban will have a “negative impact” on businesses from both countries

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China says Australia has made ‘wrong decision’ after Huawei ban – Reuters

What happened: China’s commerce ministry has said that the Australian government has made the  “wrong decision” when banning Huawei from supplying equipment for its 5G network. Shortly after the ban was announced, the ministry warned that the move will have a “negative impact” on the commercial impact on both Chinese and Australian companies.

Why it’s important: The ban follows the advice given by Australian security agencies, which said the use of the Huawei 5G infrastructure increases the risk of foreign interference and hacking. The relationship between the two countries has already soured as a result of allegations that China has been meddling in Australian politics. In addition, the move is part of a broader push in Australia, the US, and the UK to combat security risks the company’s equipment poses due to alleged ties to the Chinese government.