The Canadian government has announced a ban on the use of equipment from Huawei and fellow Chinese technology giant ZTE in its 5G networks.
In a statement , the government cited national security concerns, saying suppliers may be forced to comply with directives from foreign governments in ways that may conflict with Canadian laws or be harmful to Canadian interests.
Industry Minister Francois-Philippe Champagne said: We intend to exclude Huawei and ZTE from 5G networks. Suppliers who have installed such equipment are required to discontinue use and remove it under the plans we announce.
Champagne added that he is asking companies to remove 5G equipment by June 2024, and it will not be compensated. 4G equipment should also be removed by the end of 2027.
And carriers are banned from buying new 4G or 5G equipment from companies by September of this year.
All Huawei and ZTE-branded 5G equipment should be removed from networks by June 28, 2024. Equipment should also be removed from 4G networks by the end of 2027
In its statement, the Canadian government wrote: The government is committed to significantly enhancing the social and economic benefits of 5G and access to telecom services, but not at the expense of security.
The move makes Canada the latest member of the Five Eyes intelligence alliance to place restrictions on the use of Huawei and ZTE equipment in telecom networks.
American telecom companies spend billions removing and replacing equipment in their networks. The United Kingdom banned the use of Huawei equipment in 2020, and ordered its removal by 2027. Australia and New Zealand have also imposed restrictions on the use of the equipment for reasons of national security.
These concerns relate to China’s National Intelligence Law, which can be used to get Chinese organizations and citizens to cooperate with state intelligence work.
There is concern that this law could be used to force Chinese technology companies such as Huawei and ZTE to hand sensitive information from foreign networks to the Chinese government.
Canada requests removal of Huawei equipment by 2024
The Chinese company disputes this claim and says it is based on a misreading of China’s law. The Canadian-Chinese embassy said in a statement in response to the Canadian ban: China evaluates this incident comprehensively and seriously and takes all necessary measures to protect the legitimate rights and interests of Chinese companies.
A spokesperson for the Chinese Embassy in Canada said the alleged security concerns were an excuse for political manipulation. He accused Canada of working with the United States to suppress Chinese companies.
While the vice president of corporate affairs for Huawei in Canada, in an interview with the Canadian Broadcasting Corporation, said: We are still waiting to hear what kind of national security threats Huawei poses. We have 1,500 employees in Canada, mostly in research and development, we sell products like cell phones, and we continue to do so.
It took Canada about three years to decide on the use of Huawei and ZTE equipment in its telecom networks, a period that Bloomberg indicated that coincided with the deterioration of relations between it and China.
In December 2018, Canada arrested Huawei’s chief financial officer, Meng Wanzhou, on suspicion of violating US sanctions. Days later, China imprisoned former Canadian diplomat Michael Spavor and Canadian businessman Michael Kovrig.
China released the two Canadians after the United States reached a court deal with Wenzhou that allowed them to return to China.
Opposition politicians criticized the Canadian government’s delay. Conservative MP Raquel Dancho said in a statement : “Canadian telecoms companies in the years of lag have purchased equipment from Huawei worth hundreds of millions of dollars, and now need to remove it from their networks at an enormous cost. ”
But Bloomberg reported that Canadian telecoms companies have reduced their use of Huawei equipment due to concerns about the eventual ban.
In 2020, Bell Canada and Telus teamed up with Sweden’s Ericsson and Finland’s Nokia to build 5G networks, ditching Huawei.
In addition to the ban, Canada is putting in place new law to protect its financial, telecommunications, energy and transportation infrastructure from cyber threats.
