China regards New Zealand as 'untrustworthy' and 'back-stabbing'

Since signing a Free Trade Agreement with China it has become our number one trading partner. Throughout this,and especially under the Key government we have combined a two-faced sychophancy with two-timing with active support for the Empire.

Now that NZ has become involved in Trump's trade war with China there is a danger that we might go down with America.
As a small,and utterly insignificant country there is no reason why China would not walk away from its relationship with New Zealand.



Now the Chinese are calling New Zealand 'untrustworthy' and 'back-stabbing'.

Economy Hub: China rift - 'They now feel they cannot trust us'

NZ Herald,

14 February, 2019

In an exclusive extended interview Beijing-based Kiwi businessman David Mahon tells the Economy Hub why he's worried about New Zealand's China relationship. The raw 20-minute interview is embedded below.

"We need to stay out of these things and not takes sides," says Beijing-based Kiwi businessman David Mahon. "Because if we choose to take sides we will be crushed."

They are strong words, but Mahon has serious concerns that New Zealand's relationship with China has deteriorated to the point where we may now face a political retaliation and our exporters may face border difficulties.

Mahon has lived and worked in China since 1984. He set up his business advisory and investment firm Mahon China in 1985 and has watched New Zealand's commercial relationship evolve and grow over the decades.

When we organised an Economy Hub video interview the plan was to focus on the Chinese economy and the risks of slowing growth - although the trade war and tension over telco Huawei were part of the discussion.

But in past week the issue of New Zealand's deteriorating diplomatic relationship with China has exploded into the public arena.

On Tuesday the Herald reported that Prime Minister Jacinda Ardern was scheduled to visit China early this year but the invitation has been put on hold.

The 2019 China-New Zealand Year of Tourism was also meant to be launched at Wellington's Te Papa museum next week, but that has been postponed by China.

We have had a "brilliant relationship" with the Chinese Government in Beijing, Mahon says.

But he believes that in the last 12 months it has gone into reverse.

"So there is now a very different view, almost an opposite view of New Zealand."

What's caused that?

Rising tension between China and the US - the trade war and the stand-off over telco Huawei's ambitions to build the new 5G mobile network around the world have put New Zealand in a difficult diplomatic position.

And the messaging from the New Zealand Government has not been clear enough, he says.

The Government decision to exclude Huawei from Spark's 5G network tender process has now been qualified as a "concern" but it was initially presented as "ban", Mahon says.

"And that's how it was taken in Beijing," he says. "We didn't have discussion with them over concerns. We announced this publically and as a result they now feel they cannot trust us."

Mahon says he expects China will now take action to demonstrate its displeasure.

"One of them is that our Prime Minister is yet to be invited to Beijing. I understand she will not be invited until this is cleared up."

There is a the perception that New Zealand has been following Washington's lead.

"It's seen as a Five Eyes stitch Up – it may not be and I have no special insight - but that is how it perceived in Beijing at the moment," he says

"Is there evidence that Huawei is a backdoor into New Zealand's security integrity? That's a very hard case to make, although our security service have said that."

A speech in Washington by deputy Prime Minister Winston Peters, which appeared to indicate New Zealand had reset its Asia Pacific policy to a more pro-American stance, had also created mistrust, Mahon says.

So too had the wording of a defence paper last year which cast China as the aggressor in the South China Sea.

The Prime Minister has denied there is a serious diplomatic issue with China, although she has acknowledged challenges.

"There are challenges in our relationship, there are challenges in our relationship with a number of countries at any given time, when you run an independent foreign policy," she told parliament on Wednesday.

The Government has work to do to mend the bridges, Mahon says.

"Qualifying that strategic position comes first. Then Huawei is the major issue."

We need to reiterate that a process is in place that doesn't ban Huawei outright, he says.

"Maybe if there is a process now that can be more transparent. If we look at Ericsson and Nokia and the other bidders alongside Huawei. And if we don't decide to choose Huawei we have very clear reasons why."

We should also be more specific about our attitude to foreign investment in New Zealand.

"We have correctly prevented non-residents from buying houses, to reduce speculation. But is general New Zealand is open for business? Businesses are for sale and we want people to put cash into our country."

New Zealand needs to reiterate our own independent foreign policy stance, Mahon says.

"We're not an American surrogate, nor a Chinese surrogate, we are not going to follow Australia just because we are close to them. We will follow our own judgement, out own set of standards, our laws."

David Mahon:

• Mahon, 62, was born in Takapuna and went to Westlake Boys' High.

• He went to China in 1984 to lay carpet for Feltex.

• Mahon China works for, and has worked for, some of NZ's biggest exporters, and a range of SMEs.

Paul Buchanan is an American and it is clear where his sympathies lie

Huawei vs Five Eyes: NZ diplomatic ties at centre of dilemma

By Paul G. Buchanan*

Radio NZ,

14 February, 2019

Opinion - The Government Communications Security Bureau's (GCSB) decision to recommend against using Huawei equipment for the 5G rollout because of national security concerns underscores the strategic role commercial telecommunications plays in modern society.

The GCSB has turned down Spark's proposed use of Huawei equipment in its new 5G network, citing national security risks. Photo: AFP

It also exposes the disconnect between local telecommunications providers and the Five Eyes signals intelligence network, as well as that between career intelligence professionals and the politicians who oversee them.

The GCSB decision was expected once telecommunications firms informed the GCSB months ago that they wanted to utilise Huawei equipment as part of the 5G network upgrade.

Under the Telecommunications Interception, Communications and Security Act 2013 (TICSA) telecommunications firms must request authorisation from the GCSB for upgrades to their networks regardless of provider.

The GCSB vetting process took a delicate turn in light of a US request that its Five Eyes partners refuse to allow Huawei participation in their 5G upgrades, citing the high likelihood that Huawei equipment could be used for Chinese intelligence purposes.

That is particularly true for equipment embedded in the "core" of a 5G network, as opposed to the periphery where Huawei used to operate, because it is now possible under the 5G plan for New Zealand for some previously "core" features to migrate to peripheral parts of the network for the purposes of speeding up data flows.

The telecommunications industry sees Huawei as a good choice as a 5G provider because of its positive impact on systems efficiency and profitability.

The GCSB and its Five Eyes partners see Huawei equipment as a Trojan Horse into the local telecommunication infrastructure.

The former outlined their preferences based on their financial bottom lines. The latter have technical as well as diplomatic justifications for opposing approval on national security grounds.

Huawei is seen by the Five Eyes partners as an untrustworthy commercial operator that serves as a front for Chinese signals intelligence gathering.

Diplomatically, it would be very difficult for the GCSB to green light Huawei's involvement in the 5G upgrade in the face of the US request to withhold approval, especially if the other Five Eyes partners (Australia, Canada and the UK) agree to the US request (Australia already has and Canada and the UK are said to be leaning towards agreement).

The fallout from such a decision could open a rift within the Five Eyes partnership because New Zealand is already seen as the Achilles Heel of the network given its past record of poor cyber security awareness (say, in the overlap between professional and personal communications).

It is therefore prudent for the GCSB to side with the US on the matter.

Besides reassuring its allies, the GCSB decision also signals to the Chinese government that it is not, in fact, the weak link in the Anglophone intelligence network.

For their part, the Chinese need to be careful with their response to the adverse decision, as any retaliation will give the lie to their claims that Huawei is independent of the regime and support those who argued against Huawei's 5G involvement in the first place.

The GCSB decision comes in wake of the Minister of Intelligence and Security, Andrew Little, declaring as recently as a few days ago that New Zealand would be independent in making its decision about approval.

It also demonstrates a disconnect between the minister and the career intelligence professional who serve under him, since it is doubtful that the latter would have led Mr Little to believe that the matter of approval was open to negotiation.

To be sure, Mr Little needed to factor the commercial considerations at stake as well as the diplomatic fallout with China once approval was rejected, but his dissembling was unfortunate.

In the end, security and diplomatic concerns involving New Zealand's Anglophone allies outweighed market considerations and the potentially negative reaction of the Chinese government to the decision.

The decision may be a cost-effective as well, since the blanket ban on Huawei's involvement in the 5G upgrade eliminates the possibility that the GCSB will be spending time and resources in the future trying to plug potential vulnerabilities brought into the system under false pretenses (as the UK had to do with a previous generation of Huawei products).

*Paul G. Buchanan is the director of 36th Parallel Assessments, a geopolitical and strategic analysis consultancy based in Auckland.

Chinesetourists backing out of trips to 'back-stabbing' New Zealand

Strained relations between New Zealand and China are reportedly having a flow-on effect on our tourism industry.

Tourists have been backing away from holidays in New Zealand after our relationship with China became tense, Chinese state-run website Global Times reports.

• China could hold New Zealanders hostage over Huawei clash - expert
• NZ could see major fallout from Huawei 5G decision - expert
• Spy agency GCSB raises security concerns over Spark's Huawei 5G plan

The Government refused Chinese telecommunications company Huawei permission to build parts of NZ's 5G network in November, causing the start of the kerfuffle.

Global Times reports Chinese "netizens" were upset by the news and have made their feelings known with their tourism dollars.

New Zealand was not ranked in the top 10 overseas tourist destinations on online travel platform Lvmama and China has postponed a tourism event that was due to take place at Te Papa on February 20.

• Foolish not to listen' to GCSB on Huawei - Collins

Some Chinese visitors are even changing their plans to visit New Zealand, the tabloid claims.

"Is it a kind of robbery? New Zealand stabbed us in the back but asks for our money? This is double-faced," a Beijing-based worker known as Li told Global Times.

Li had saved 15,000 yuan (NZ$3200), but told Global Times he will instead be visiting neighbouring countries.

Also causing trouble is new law allowing Customs officers to check people's electronic devices at the border.

The Customs and Excise Act 2018, which came into effect on October 1, means Customs can demand to see any electronic devices and make travellers hand over the password.

Prime Minister Jacinda Ardern downplayed the tension, telling The AM Show on Monday NZ's relationship with China is "complex".

"There is no doubt the relationship comes with its challenges, as our relationships with a range of countries will from time to time.

"[But] doesn't undermine the strength of it, the maturity of it."

Huaweiboss says US 'ban' is motivated by trade war

Here is some historical coverage for some context

The China FTA: What have we gained from it, and what are we missing out on?

Sothe Chinese spy inside the National Party tried to get another spyinside our military?!?

By Martyn Bradbury
If only the NZ media put as much focus on China having a spy inside the National Party as they did when Metiria admitted having to stealing from Welfare to feed her kid huh?