China’s Huawei Technologies said barring it from involvement in Australia’s next-generation wireless networks due to security concerns was “ill-informed.” The company warned that the move could result in a technological setback for the country that increases consumer costs.

In a letter, China’s biggest maker of telecommunications equipment told Australian legislators that their concerns were “not based on
facts.” Huawei pointed to the fact that it had released technology in Britain, Germany, Spain and Canada without compromising national security.

Canberra is set to bar the Chinese giant from providing equipment for Australia’s 5G wireless networks, according to the the Australian Financial Review.

Huawei and its competitor ZTE Corp have become the focus of increased scrutiny in the US because of fears that their equipment could be used for espionage

Huawei and its competitor ZTE Corp have become the focus of increased scrutiny in the US because of fears that their equipment could be used for espionage.

In the letter, the company outlined the potential consequences of the ban. About half of Australians depend on Huawei equipment for communication over networks operated by Vodafone Group, Singapore Telecommunications-owned Optus and TPG Telecom, and have benefited from the increased competition resulting from the Chinese company’s involvement.

“To completely exclude Huawei from 5G in Australia means
excluding Huawei from the entire Australian market and we don’t
believe this would be in Australia’s best interest,” Huawei said
in its letter.

Huawei’s appeal comes amid rising tensions between Australia and China. Canberra is proposing legislation to counter foreign meddling and cyberattacks, as well as strengthen anti-spying measures.