A project to build a 4,000-kilometer underwater cable connecting Sydney and the Solomon Islands came to a screeching halt following the Australian Secret Intelligence Service’s warning to the Solomons Islands prime minister that the Chinese firm contracted to do the work, Huawei, allows Chinese spies access to conduct cyberattacks.
During a June visit to the Solomons, ASIS head Nick Warner informed Solomons Prime Minister Manasseh Sogavare of his concerns about the use of Huawei as a contractor. Huawei’s ability to securely install the cable came into question as a result of “backdoors” found in the firm’s products.
"It is no secret that China is very active in intelligence activities directed against us," Defence Secretary Dennis Richardson said in his final speech before retiring in May.
Honiara gave contract rights to Shenzhen-based telecom giant Huawei in mid-2016, though a US-UK firm was initially awarded contract rights following "a competitive tender process," the Sydney Morning Herald reported. The US-UK company had full permission from Canberra’s Attorney General to carry out the work. Huawei has yet to be granted such a permit. The Asian Development Bank (ADB) promptly pulled its financing of the project after the US-UK firm was snubbed.
