Two Chinese telecom companies, Huawei and ZTE, have been banned by the Australian government from providing 5G technology and services, after the government published a set of new guidance for network vendors, according to an August 23 local media report.
In a statement on Wednesday, officials implied that the Chinese companies could pose a risk to Australia’s national security, without naming China or the companies.
"The government considers that the involvement of vendors who are likely to be subject to extrajudicial directions from a foreign government that conflict with Australian law, may risk failure by the carrier to adequately protect a 5G network from unauthorised access or interference," the statement said.
A spokesperson at the Chinese Ministry of Commerce criticised the move on Wednesday, saying that the decision will hurt both Chinese and Australian companies. The spokesperson said Australia should treat Chinese corporations in Australia fairly, and stop interfering in their operations.
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The China-led Belt and Road Initiative suffered a setback this week, as Malaysia cancelled some of its Chinese-funded projects, including the construction of a railway and a gas pipeline, Malaysian media reported this week.
Mohamad Mahathir, the Malaysian prime minister, made the announcement during his trip to Beijing this week, arguing that the country cannot afford to take up more debt.
“I don’t think China wants us to be bankrupt,” he told media. “The projects [will] not go on. Our priority is reducing our debt. For the moment, they are deferred until we can afford [them].”
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The first local government bond with a maturity of 20 years was sold on the Shanghai Stock Exchange on Wednesday, the bourse said in an August 22 announcement. The Rmb10bn bond, which was issued by the government of Inner Mongolia, priced at 4.44% and was oversubscribed by 3.09 times. The exchange said the issuance would attract longer-term investors, such as insurance companies, to more actively participate in the local government bond market.
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China has launched its first financial court in Shanghai, according to an August 20 state media report. The Shanghai Financial Court, which inaugurated this week, will specialise in handling financial cases, such as disputes involving securities, futures and insurance, bankruptcy cases where financial institutions are the debtors, and administrative cases, with financial regulators as defendants, according to another state media report this week.
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A Goldman Sachs’ fund established with the China Investment Corporation, the Chinese sovereign wealth fund, took home $1.5bn from its first round of fundraising, the bank said in an August 17 press release. The fund, named China-US Industrial Cooperation Partnership, was first announced when US president Donald Trump visited China last November.
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Dagong Global Credit Rating apologised for failure in risk control in an August 17 statement.
The embattled Chinese credit rating agency was banned by National Association of Financial Market Institutional Investors and the China Securities Regulatory Commission from rating bonds in China last Friday. The regulators accused Dagong of selling expensive consulting services to the companies it rated.
The agency said it would correct its errors with the help of regulators. Dagong also hit back at some of its critics, saying that it reserves the right to sue those libelled against the company over this saga.