Huawei tweeted on Thursday that the Australian government banned it and ZTE from providing 5G technology equipment for a network that is set to launch next year. The new network is set to increase data flow speeds as well coverage and stability.
Australian government announced new rules for the development of the 5G network. While they did not mention the two companies explicitly, the statement said that "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 unauthorized access or interference."
According to a law from last year, Chinese citizens and companies may be compelled to provide information to the nation's security agencies if asked to.