CHINA on Thursday urged Australia to abandon ideological prejudice and provide a fair competitive environment for Chinese firms to operate in Australia.

Foreign Ministry spokesman Lu Kang expressed serious concern at a daily news conference after the Australian Government banned Chinese telecom firm Huawei, based in Shenzhen, from supplying equipment for the country’s planned 5G mobile network.

Australia should not “use various excuses to artificially set barriers and adopt discriminatory practices,” Lu said.

The cooperation between Chinese and Australian enterprises is mutually beneficial, he said, adding that Australia should facilitate such cooperation because it not only conforms to the interests of Chinese companies but also the interests of Australian companies and consumers.

Huawei’s Australia affiliate said on its Twitter account Thursday that it has been informed by the Australian Government that Huawei and another Shenzhen-based telecom firm ZTE Corp. have been banned from providing 5G technology in the country.

“This is an extremely disappointing result for consumers,” Huawei said. “Huawei is a world leader in 5G.”

The security of 5G networks will have fundamental implications for all Australians, the Australian Government said in a statement published on its website Thursday. It added that the Australian Government has considered “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 unauthorized access or interference.”

The Australian Government has seriously violated the principles of fair competition and non-discrimination in free trade and Huawei will take legal measures to safeguard its legitimate rights and interests, the company said in a statement.

Huawei said it has been working on wireless technology on the continent for 15 years in a safe and secure manner.

The ban shows that the Australian Government holds a completely biased view toward Chinese firms, which contradicts the spirit of the free market that it values, said Ruan Zongze, executive vice president of the China Institute of International Studies.

“The Australian Government becomes paranoid when it comes to matters related to China, which is a terrible situation and absurd,” he said.

The ban will lead to higher costs for building 5G networks in Australia, “which could be 30 percent higher,” Xiang Ligang, chief executive of telecoms industry news site cctime.com, said.

Vodafone (VOD) and Optus, two of Australia’s biggest mobile phone carriers, have supplier relationships with Huawei and had previously tested the company’s 5G equipment.

Vodafone’s chief strategy officer in Australia, Dan Lloyd, criticized the government’s announcement, saying it “creates uncertainty for carriers’ investment plans.”

“This decision is a significant change, which fundamentally undermines Australia’s 5G future, and we will consider what it means for our business,” he added.(SD-Agencies)