Canada moves to protect 5G network with Huawei ban

Canada said it plans to ban the use of 5G gear made by China’s Huawei Technologies Co. Ltd. and ZTE Corp. to protect national security, joining the rest of the so-called Five Eyes intelligence-sharing network.

“We intend to exclude Huawei and ZTE from our 5G networks,” Industry Minister Francois-Philippe Champagne told reporters in Ottawa. “Providers who already have this equipment installed will be required to cease its use and remove it under the plans we’re announcing today (May 19, 2022).”

Champagne added that companies will be required to remove their 5G gear by June 2024, and companies using their 4G equipment must remove it by the end of 2027.

The decision had been delayed amid diplomatic tensions with the People’s Republic of China. The rest of the Five Eyes network, which consists of Australia, Canada, New Zealand, the United Kingdom and the United States, has already banned the equipment for fears that the Chinese companies could be forced to work with their government in intelligence-gathering activities.

In September 2018, Canada first announced it would review the possible threats to national security in adopting Huawei equipment.

Then in December of the same year, Huawei Chief Financial Officer Meng Wanzhou was arrested in Canada on a U.S. warrant, creating a long-running dispute with the PRC that finally ended with Meng’s release in September 2021.

After Meng’s arrest, two Canadians were arrested by Beijing and accused of espionage. The two men were released the same day as Meng. 

Now diplomatic tensions between Canada and the PRC have eased somewhat. The PRC in May 2022 removed a three-year restriction on imports of Canadian canola seed, reversing what was considered a retaliatory move for Meng’s arrest. The decision to ban Huawei and ZTE Corp. came after telecommunications companies in Canada already opted to use other companies’ 5G hardware.

The PRC expressed opposition to the move. “We will take all necessary measures to safeguard the legitimate interests of Chinese firms,” Foreign Ministry spokesman Wang Wenbin said.

Alykhan Velshi, vice president of corporate affairs for Huawei in Canada, said in an interview with the Canadian Broadcasting Corp that the company is still waiting to hear “what sort of national security threats they think Huawei poses.”

Velshi said that Huawei still has 1,500 employees in Canada, mostly in research and development, and sold products like mobile phones, and would continue to do so.

ZTE said in a statement it is aware of Canada’s “regrettable” decision and rejects the premise of this “highly speculative” announcement.

In addition to the ban, Public Safety Minister Marco Mendicino said Canada would draft new legislation to protect critical financial, telecommunications, energy and transport infrastructure from cyber threats.

IMAGE CREDIT: AFP/GETTY IMAGES