SYDNEY (AUSTRALIA) – The Australian wing of Chinese telecoms giant Huawei said on Monday that it would terminate its sponsorship of a national rugby league team a year earlier than the end of the contract, citing downturn in its business.
Huawei said in a statement it would end its sponsorship of the Canberra Raiders at the end of the 2020 season because a “continued negative business environment is having a larger than originally forecasted impact on our planned revenue stream”.
This comes amid strained relations between Canberra and Beijing as Australia seeks to curtail China’s clout amid other issues over trade and national security.
Citing national security, Australia became the first nation to impose a ban on Huawei from its 5G network in 2018 when Malcolm Turnbull was the prime minister. Since then, the country’s ties with China have been on the wane and reached a low point during the outbreak of the virus.
“Even after the Turnbull government banned us from 5G we managed to find the resources to continue the sponsorship but we just can’t financially support it any longer,” said Jeremy Mitchell, Huawei Australia’s chief corporate affairs officer.
For close to a decade, the firm has supported the rugby club and the board members include former intelligence chief Dennis Richardson and a former defence department secretary, Allan Hawke, is the chairman.
The statement said the firm will retain its name on the team’s training centre, and a place on the rear of the football jersey.
Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field.