TORONTO (AP) – Wireless operators in Canada will not be allowed to install Huawei equipment in their high-speed 5G networks, the Canadian government said on Thursday, joining its allies in banning the giant Chinese technology company.
Canada was the only member of the Five Eyes Intelligence Alliance that does not prohibit or restrict the use of equipment by Huawei Technologies Co. Ltd. in their 5G networks. The United States and other members – Britain, Australia and New Zealand – have previously banned Huawei.
“We announce our intention to ban the inclusion of Huawei and ZTE products and services in Canada’s telecommunications systems,” said Industry Minister Francois-Philippe Champagne.
Canada’s ban also includes ZTE Corp., one of China’s largest and state-owned technology companies.
Champagne added that “suppliers who already have this equipment installed will have to stop using it and remove it.” He said Canadian wireless companies would not receive compensation.
Large Canadian wireless companies have already started working with other providers.
“There are many hostile actors who are ready to exploit vulnerabilities in our defense,” said Public Security Minister Marco Mendicino.
Mendicino said the government has conducted an extensive review and is redoubled efforts to protect Canadians.
China has condemned the move against one of its national champions as a form of “political manipulation” carried out in coordination with the United States, aimed at “suppressing” Chinese companies in violation of free market principles.
“China will evaluate this incident comprehensively and seriously and will take all necessary measures to protect the legitimate rights and interests of Chinese companies,” the Chinese embassy in Canada said in a statement posted on its website.
China often uses such language in trade disputes, which often does not lead to a firm response from Beijing.
The US government has lobbied allies such as Canada for years to exclude Huawei from the new ultra-fast 5G mobile networks over concerns that China’s communist rulers could force the company to help with cyber espionage. The United States has warned that it will reconsider sharing intelligence with all countries that use Huawei equipment.
The company has repeatedly denied the allegations.
“We are disappointed, but not surprised. We are surprised that it took the government so long to make a decision, “said Huawei spokesman Alihan Welsh. “We see this as a political decision born of political pressure, mostly from the United States.
Welsh said he would have Huawei equipment in Canada for years to come. He said the company has more than 1,500 employees in Canada and two-thirds of them work in research and development.
The development of 5G or fifth generation networks will give people faster online connections and provide huge data capacity to meet predatory demand, as more and more things connect to the Internet and innovations such as virtual reality, immersive games and autonomous vehicles.
Huawei is the world’s largest provider of networking equipment for telephone and Internet companies. It is a symbol of China’s progress in becoming a technological world power – and a source of concern for US security and law enforcement. Some analysts say Chinese companies have ignored international rules and regulations and stolen technology.
China, the United States and Canada have completed what was effectively an exchange of high-stakes prisoners last year with Huawei’s chief executive accused of US fraud
China jailed two Canadians shortly after Canada arrested Meng Wangzhou, chief financial officer of Huawei Technologies and daughter of the company’s founder, on a request for extradition from the United States. They were sent back to Canada in September, the same day Mang returned to China after reaching a deal with US authorities on her case.
Many countries have described China’s actions as a “hostage policy”, while China has described the allegations against Huawei and Meng as a politically motivated attempt to sustain China’s economic and technological development.
“The decision was supposed to be made two or three years ago, but it’s better late than never,” said Guy Saint-Jacques, Canada’s former ambassador to China, on the move to ban Huawei. “We are facing China, which is much more aggressive in pursuing its foreign policy, but also in the way it receives information to achieve its goals.
Saint-Jacques said that under Chinese law, no company could refuse a request from the Chinese government to share information, so it would be impossible to allow Huawei to participate.
He expects China to respond.
“I expect to hear from them pretty soon,” he said. “They use trade as a weapon and I suspect we will see that in this case.”
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