James McGrath (Queensland, Liberal National Party) Share this | Link to this | Hansard source

Earlier this year, I spoke of an iron curtain falling around our region, from Mandalay to Moresby and from Manila to Melbourne. Communist China is intent on domination, not through traditional means of military warfare but on three fronts: economic, political, and cultural oppression, within a matrix of cyberwarfare. While China has continued with its wolf warrior diplomacy and while territorial concerns continue to be raised, including in seas off Japan, Vietnam and the Philippines, the Chinese Communist Party government and its military arm have been quietly making strategic acquisitions of another kind, especially in one of our oldest allies, the Philippines.

Some of these were laid bare a few weeks ago when President Biden expanded the scope of Executive Order 13959, addressing the threat from securities investments that finance certain companies of the People's Republic of China, originally signed in November last year by President Trump in order to take additional steps to protect the national security, foreign policy, and economy of the United States. This expanded executive order increased the list of Chinese companies banned from United States investments from 31 to 59. This is a list of Chinese companies that undermine the security or democratic values of the United States and its allies.

Tonight I want to speak about one of those prohibited companies, China Telecom, and its empire building in the Philippines, one of our oldest allies. According to the United States Federal Communications Commission, the Chinese Communist Party government has substantial control over China Telecom. China Telecom describes itself as a 'main force for building a cyber power', and it is bound by China's National Intelligence Law article 7, which states, 'Any organisation or citizen shall support and assist and cooperate with the state intelligence work in accordance with the law, and keep the secrets of the national intelligence work known to the public'.

Particularly of concern is China Telecom's 40 per cent share in Dito Telecommunity, a multibillion-dollar telecommunications company established in the Philippines. Many are concerned that Dito Telecommunity is a Trojan horse for spying, including on the armed forces of the Philippines and its allies the United States and Australia. Asia-Pacific consulting firm Creator Tech recently released a study into the new telecommunications operator. They said:

China Telecom reports to the Central People's Government in China. This partner of Dito, which describes itself as 'a main force for building a cyber power,' is China's preferred third mobile operator put forward by China's leaders upon the request of President Duterte. This raises serious questions on cyber security, citizens' privacy, and national interests. These will have serious repercussions on multiple fronts

Creator Tech also noted this new venture was not happening in isolation. For example, the Chinese Communist Party government also has a stake in the National Grid Corporation of the Philippines, or NGCP for short, the corporation in charge of operating, maintaining and developing the country's state owned power grid. It is co-owned by the State Grid Corporation of China.

Also concerning are proposals in the Philippine Senate, including Bill No. 2094, which would allow 100 per cent foreign ownership of public utilities, including telecommunications and transportation. Filipino lawmakers are rightly concerned that this could allow China to own infrastructure which is crucial to the Philippines. When we consider how many Australian companies house parts of their businesses in the Philippines, such as call centres, this should ring alarm bells with cybersecurity experts.

Communist China is on the march. We must be awake to the Philippines being one of the first dominoes at risk of falling to the nefarious influence of that evil regime in China. Whether in Manila, Maroochydore or Mareeba, we must be awake to the threat of communist China to freedom.