Summary 
On June 28, in the middle of disputes with Chinese telecom giant Huawei on a 5G network, Australia passed a law to prevent foreign interference in the country’s politics and domestic affairs. The new legislation adds 38 new crimes related to foreign interference to the register, including stealing state secrets on behalf of a foreign government, and expands the definition of what can be considered espionage. It also requires lobbyists for foreign governments to register on a public list. The punishment for some of the offenses outlined in the regulations can be up to 20 years in prison. A separate law is currently being considered would outlaw political donations from foreign governments. Some experts believe this may aggravate Australia’s already strained relations with their biggest trading partner, China, one already under considerable stress due to amassing accusations of spying via Chinese companies. Huawei has been the largest corporate sponsor of overseas travel for Australian federal government officials since 2010. China’s investment in Australian government officials raises concerns about Beijing’s influence on Australian political decisions. China has already retaliated by cancelling travel visas for Australian business leaders.
FAO Global Assessment
Beijing’s reputation for taking advantage of Chinese business presence abroad is creating a window of opportunity for competing western firms. Tech companies from North American countries, where operating costs are typically higher than their counterparts in China, now have a secure advantage when bidding on projects overseas. Partnering with a firm originating from an ally country poses a far less significant threat of illicit infiltration. Western companies may consider refocusing on markets where Chinese companies have been accused of being security risks in high-tech fields.
Related Links
- New York Times- Australian Law Targets Foreign Interference. China Is Not Pleased.
- New York Times- China’s Huawei Leads as Corporate Sponsor of Australian Politicians’ Travel
- Business Insider- Australia passed sweeping foreign interference laws not-so-subtly targeted at China
- South China Morning Post- Australia to pass foreign interference laws with an eye on China
- Xinhua net- Australia rushes through stricter foreign interference legislation
- BBC News- Australia passes foreign interference laws amid China tension
About the Author
Weiting Li- International Policy Associate
Weiting Li is an international policy intern at FAO Global, where she focuses on international trade, technology, and environmental policies. Weiting is currently a second year graduate student pursuing dual master’s degrees in public policy at Georgetown University and Business Administration at University of Geneva. Prior to Georgetown, she was the assistant for government relations and working groups at European Chamber of Commerce in China. She graduated from Gettysburg College with a major in Sociology and a minor in Business.
