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Huawei’s Australian operation recently announced that it would cut investment and staff in the country. The decision has been taken at a time when both countries are having strained relations.

The worsening relationship between countries is not something new. They have been hitting each other in terms of business for a very long time. Every year, there are new decisions passed by the countries. Just to let you know Huawei is a Chinese based tech company.

Two years back which is in 2018, Australia had stopped Huawei from providing 5G mobile network equipment. This move was taken to protect national security risks. However, the company criticised the move and said that it was politically motivated.

Jeremy Mitchell who happens to be the chief of corporate affairs in Huawei for Australia said that the 5G ban on Huawei by Australia has cost them 1,000 high-wage and high-tech jobs in the country.

He also added that the total number of staff has reduced from 1200 to 200. By next year, it will reduce more. 

The comments were first reported by the Australian Financial Review.

The Chinese tech giant has cancelled around AUD 100 million of development and research investments in Australia. This has happened due to the 5G ban move taken by Australia.

Last month, Huawei said that they are going to end their sponsorship of a rugby team in Australia. They will terminate the sponsorship a year before the due date. They said that they are making this decision because they have incurred heavy losses in their business.

With all the stuff going on between China and Australia, there is no doubt that the relationship between the two countries has worsened this year. This particularly happened after Australia decided for an independent international investigation regarding the origin of the coronavirus pandemic.

This particular announcement angered Beijing very badly. Since then they have stopped importing Australian beef. They have also placed huge tariffs on barley that is imported from Australia. Not just that but they also started an anti-dumping investigation into wine that comes from Australia.

Given the current situation between both countries, it is clear that their relations are getting sour with passing time. This is affecting the trade and business between both nations. 

This sour relationship between the two nations is affecting the economy of Australia.