Canada banned the use of Huawei Technologies and ZTE in the country’s telecommunications system on security grounds following a government review that lasted nearly four years.
The federal government announced May 19 that it would ban the use of Huawei and ZTE equipment in Canada after “thorough review by our independent security agencies and in consultation with our closest allies,” the minister said. Innovation François-Philippe Champagne in a press release.
The government has been under pressure for years from other countries as well as opposition parties to ban the Chinese telecom company from participating in the rollout of a 5G network in Canada, a network that Ottawa says itself, “will usher in a new industrial era that will create significant economic and economic benefits”. social opportunities for Canadians.
What is 5G?
5G technology has long been touted as a game-changer for wireless communications, which will enable faster communication at higher speeds with more devices. The technology that supports the network has been redesigned compared to previous generations. 5G, or fifth generation, will allow more devices – from home appliances to cars – to connect to a network and to each other without bogging down the system.
“5G will be an entirely new and flexible network that will interface with all existing and evolving generations of wireless technology to come,” the federal government’s communications research center said.
“It will be faster, more flexible and allow billions of new devices to be connected to each other.”
Why did Canada ban Huawei?
Huawei has faced accusations that its technology could provide a potential backdoor for espionage, given its ties to the Chinese Communist Party. Huawei and the Chinese government have strenuously denied the accusation, saying the company poses no security threat.
Here’s what Ottawa had to say about its – widely anticipated – decision to ban the Chinese telecommunications company.
“The Government of Canada has serious concerns about suppliers such as Huawei and ZTE who may be forced to comply with extrajudicial instructions from foreign governments in a manner that would violate Canadian law or be detrimental to Canadian interests.” , the government said in a policy. statement.
“Canada’s closest allies share the same concerns about these two suppliers. Considering the potential cascading economic and security repercussions that a breach in the telecommunications supply chain could cause, the allies have taken steps to enable them to ban the deployment of Huawei and ZTE products and services in their 5G network. . telecommunications networks. »
What does the Huawei ban mean for Canadian businesses?
While some of the Canadian telecom giants initially considered working with Huawei, they have since decided to partner with other companies, including Sweden’s Ericsson and Finland’s Nokia, to develop their 5G networks.
Ottawa says all use of 4G equipment or managed services from Huawei and ZTE must be removed by December 2027. All existing 5G equipment and managed services must be removed or terminated by June 2024.
What does the ban mean for Canada’s relationship with China?
Canada’s relations with China soured following the 2018 arrest of Huawei executive Meng Wanzhou at the request of the United States. Within days, Chinese authorities arrested Canadians Michael Kovrig and Michael Spavor. The diplomatic saga ended in September 2021, when all three were released after US prosecutors reached a settlement with Meng.
It’s unclear what impact the 5G ban will now have on Canada’s relationship with China.
On May 20, Chinese Foreign Ministry spokesman Wang Wenbin criticized Canada’s decision, saying it was made “without any solid evidence”.
“This decision violates the principles of market economy and free trade rules, and seriously damages the legitimate rights and interests of Chinese enterprises,” he said.
“The Chinese side firmly opposes it. We will carry out a full and rigorous assessment and take all necessary means to safeguard the legitimate rights and interests of Chinese enterprises.
With files from The Canadian Press and Reuters
Alicja Siekierska is a Senior Reporter at Yahoo Finance Canada. Follow her on Twitter @alicjawithaj.
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