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Canada bans Chinese tech giant Huawei from 5G network | CBC News Loaded
Politics


CANADA BANS CHINESE TECH GIANT HUAWEI FROM 5G NETWORK

The federal government has banned Huawei from working on Canada's
fifth-generation networks over security concerns — a decision critics say was
long overdue.


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DECISION COMES LOADED WITH IMPLICATIONS FOR NATIONAL SECURITY AND DIPLOMACY

Catharine Tunney, Richard Raycraft · CBC News · Posted: May 19, 2022 3:50 PM ET
| Last Updated: May 20


CANADA BANS CHINA’S HUAWEI FROM 5G NETWORK

3 days ago
Duration 2:23
The federal government has announced it will ban Chinese telecom giant Huawei
from accessing Canada’s 5G network over concerns for national security.
4021
comments

The federal government has banned Huawei from working on Canada's
fifth-generation networks over security concerns — a decision critics say was
long overdue.

The move puts Canada in line with key intelligence allies like the United
States, which have expressed concerns about the national security implications
of giving the Chinese tech giant access to key infrastructure.

The government is also banning ZTE, another Chinese state-backed
telecommunications firm. A government policy statement posted online says
companies will have until June 28, 2024, to remove or terminate 5G equipment
from Huawei and ZTE.

They'll also have to remove or terminate any existing 4G equipment provided by
the companies by Dec. 31, 2027. The policy statement says the government expects
companies to stop purchasing new 4G or 5G equipment from the companies by
September of this year.

"This is the right decision and we are pleased to announce it today because it
will secure our network for generations to come," Innovation, Science and
Industry Minister François-Philippe Champagne told a news conference Thursday.

WATCH | Canada bans Huawei from access to 5G network:


CANADA BANS HUAWEI FROM ACCESS TO 5G NETWORK

4 days ago
Duration 1:09
Innovation Minister Francois-Philippe Champagne says banning the Chinese telecom
company will help keep Canadians safe.

Responding to a question about the risk of retaliation from the Chinese
government, Champagne didn't indicate that was a factor in the government's
decision.

"Let me be clear, this is about Canada, this is about our national security,
this is about our telecom infrastructure," he said.

 * China's ambassador warns that banning Huawei from 5G would send 'a very wrong
   signal'

 * Banning Huawei from Canada's 5G networks could be costly for taxpayers

 * Michael Kovrig and Michael Spavor are free: What does this mean for
   Canada-China relations?

Public Safety Minister Marco Mendicino said the decision marks "a new era in
safeguarding our telecommunications industry." He said the decision came after a
"thorough government examination [of] 5G and wireless technologies."

"Canada is a country where people can innovate and start new businesses and
leverage new technologies in 5G and beyond, but we also need to safeguard
against the risks which can be exploited within those networks," he said.

Mendicino said new legislation is coming to protect 5G networks. The legislation
will "establish a framework to better protect the systems vital to our national
security and give the government a new tool to respond to emerging cyber
threats," Mendicino said.



The minister said the legislation also will help protect infrastructure in the
finance, energy and transport sectors.

China condemned the move against one of its national champions as a form of
"political manipulation" carried out in co-ordination with the U.S., which was
aimed at "suppressing" Chinese companies in violation of free market
principles. 

"China will comprehensively and seriously evaluate this incident and take all
necessary measures to safeguard the legitimate rights and interests of Chinese
companies," the Chinese Embassy in Canada said in a statement posted on its
website. 

China commonly employs such language in commercial disputes, which often does
not lead to a firm response from Beijing.

The Canadian government's decision has been a long time coming. Prime Minister
Justin Trudeau's government launched a review of the companies that would be
permitted to service 5G networks during its first mandate.

Then-public safety minister Ralph Goodale promised to release a decision on
Huawei before the 2019 federal election.

WATCH | Canada bans Huawei from telecom networks after years of delay


CANADA BANS HUAWEI FROM TELECOM NETWORKS AFTER YEARS OF DELAY

4 days ago
Duration 7:44
"This has never been about a race," says Industry Minister François-Philippe
Champagne when pressed on why it took the Canadian government years to reach a
decision to ban Huawei from telecommunication networks. "This is about Canada.
This is about our national security."


OPPOSITION PARTIES BLAST GOVERNMENT, SAY DECISION COMES TOO LATE

But opposition parties say the government waited far too long to make up its
mind.

In a media statement, Conservative public safety critic Raquel Dancho and Gerard
Deltell, the party's critic for innovation, science and industry, said the
government should have banned Huawei sooner.

"Conservatives repeatedly called on the Trudeau government to do the right thing
and listen to security experts and the calls from our allies — but they
refused," they said in a statement. 

They also raised concerns about the cost companies will have to bear to remove
existing equipment.

"In the years of delay, Canadian telecommunications companies purchased hundreds
of millions of dollars of Huawei equipment which will now need to be removed
from their networks at enormous expense," they said.

In a tweet, Conservative foreign affairs critic Michael Chong also faulted the
government.

"It shouldn't have taken more than three years for the Trudeau government to ban
Huawei," Chong said.

"David Vigneault, director of CSIS (the Canadian Security Intelligence Service),
publicly warned the government about the threat from Huawei in early December
2018."



NDP critic for innovation, science and industry Brian Masse also criticized the
government's timing.

"It has taken the Liberal government three years to make this decision while the
other Five Eyes countries made their positions known much sooner," he said in a
media statement.

"This delay only worked to raise serious questions at home and among our allies
about the Liberal government's national security commitments and hampered the
domestic telecommunications market."

Masse also said the government put Canadians' security and privacy at risk by
delaying the decision.

The development of 5G networks promises to give people speedier online
connections and provide the greater data capacity required to allow more people,
and things, to connect online.

While the federal government's review of its 5G policy has taken a broad look at
which companies can service the new, faster online networks, most of the
attention has focused on whether Huawei would be allowed in — and the possible
national security implications of giving it access.


Innovation, Science and Industry Minister François-Philippe Champagne and
Minister of Public Safety Marco Mendicino hold a press conference to announce
that Huawei Technologies will be banned from Canada’s 5G networks in Ottawa on
Thursday, May 19, 2022. (David Kawai/The Canadian Press)

The government went largely silent on the review's progress after China
imprisoned Michael Kovrig and Michael Spavor nearly three years ago — an
apparent act of retaliation for the RCMP's arrest of Huawei chief financial
officer Meng Wanzhou on a U.S. extradition warrant.

The two Canadians returned home last fall, hours after Meng reached a deferred
prosecution agreement with the U.S. government.

Critics have warned that Huawei's participation in Canada's 5G networks could
give the company an inside look at how, when and where Canadians use
internet-connected devices — and that the Chinese government could force the
company to hand over that personal information.

China's National Intelligence Law says Chinese organizations and citizens must
support, assist and co-operate with state intelligence work.

Huawei insists it is a fiercely independent company that does not engage in
espionage for anyone, including Beijing.


HUAWEI EXECUTIVE NOT SURPRISED BY BAN

In an interview with CBC's Power & Politics, Alykhan Velshi, vice-president of
corporate affairs for Huawei in Canada, said he's not surprised by the decision
but is still disappointed.

The government hasn't provided evidence that Huawei is a national security
threat, he said. He also questioned what the government will do about scheduled
software upgrades for Huawei equipment already installed — something the company
is talking to the government about right now, he added.

"I find it hard to believe the government is going to want to suspend those
discussions," he told host Vassy Kapelos.

WATCH | 'This is a political decision': Huawei VP on Canadian ban


'THIS IS A POLITICAL DECISION': HUAWEI VP ON CANADIAN BAN

4 days ago
Duration 8:38
"This is a political decision," said Huawei VP Alykhan Velshi of the Canadian
government's intention to ban Huawei from telecommunication networks. "It's for
the government to provide evidence that Huawei is a national security threat as
they claim. They have not done so."

"Our position is we're going to continue supporting Huawei equipment in the
network, and that will require a level of ongoing co-operation at the technical
level between Huawei and the federal government — not just in the days and weeks
ahead but, frankly, in the years ahead for as long as this equipment is part of
Canada's telecommunications network."

Velshi said the company has about 1,500 employees in Canada and that most of
them work in research and development. They're not affected by the decision, he
said.

He added that the company's consumer products, such as phones and
watches, aren't affected by this decision. He said the company has focused on
R&D and consumer products since 2018 in anticipation of the ban announced today.

"The reality is that Huawei will form part of Canada's telecommunications sector
for the foreseeable future," he said


HOW MIGHT THIS AFFECT THE CANADA-CHINA RELATIONSHIP?

Various European nations and Canada's allies in the Five Eyes
intelligence-sharing group — including the U.S., U.K. and Australia — have made
aggressive moves against Huawei, either by barring it from their networks or by
restricting their use of Huawei equipment.

Late last year, China's foreign ministry warned that Beijing's relations with
Canada stood "at a crossroads."

Earlier in December, China's ambassador to Canada signalled that keeping Huawei
out would send a "very wrong signal."


The government largely went silent on the 5G review's progress after China
imprisoned Michael Kovrig, right, and Michael Spavor, left, nearly three years
ago. (Colin Hall/CBC, Chris Helgren/Reuters)

Huawei already supplies some Canadian telecommunications firms with 4G
equipment.

As Global News has reported, telecommunication companies spent hundreds of
millions of dollars on Huawei equipment while the federal government's review of
5G was ongoing — although that number has waned over the years.

 * With Canada set to announce 5G networks policy, what will it do about Huawei?

 * REPORTER'S NOTEBOOK
   After nearly 3 years, we're still searching for the meaning of Meng Wanzhou's
   detention

The government also risks a lawsuit under the terms of a foreign investor
protection agreement signed by the government of Stephen Harper with China.

Under that agreement, Huawei Canada — as an existing investor with assets
— could bring a claim against Canada.

With files from The Associated Press

CBC's Journalistic Standards and Practices|About CBC News
Report Typo or Error|Corrections and Clarifications


RELATED STORIES

 * REPORTER'S NOTEBOOK
   After nearly 3 years, we're still searching for the meaning of Meng Wanzhou's
   detention
 * With Canada set to announce 5G networks policy, what will it do about Huawei?
 * China's ambassador warns that banning Huawei from 5G would send 'a very wrong
   signal'

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