Canada has banned Chinese Huawei Technologies and ZTE, another Chinese company, from participating in the country’s 5G wireless networks, citing national security concerns.
Telecommunications companies in Canada will not be allowed to include products or services from these telecommunications companies in their networks. Vendors who already have this equipment installed will need to stop using it and remove it.
Innovation, Science and Industry Minister Francois-Philippe Champagne and Public Security Minister Marco Mendicino announced a ban on these “high-risk suppliers” in Ottawa on Thursday.
In particular, the federal government says it intends to see the Canadian telecommunications industry:
- Discontinue the purchase of new 4G or 5G equipment and services from Huawei and ZTE by September 2022;
- Discontinue use of any new or existing 5G equipment and services from Huawei and ZTE by June 2024; and
- Discontinue use of any new or existing 4G equipment and services from Huawei and ZTE by December 2027.
The federal government says it will introduce legislation “in the very short term” that will amend the Telecommunications Act, which they say will protect Canada’s telecommunications system against national security risks in the financial, telecommunications, energy and transportation sectors.
“This new legislation will create a framework for better protection of systems vital to our national security and will give the government a new tool to respond to emerging cyber threats,” Mendicino said.
Among the reasons cited in the government’s “political declaration” accompanying the announcement were:
- 5G is set to introduce significantly improved data capacity that will connect billions of devices and “serve as a foundation on which other technologies, our digital economy and our critical infrastructure will depend”, so Canada must ensure its security;
- The government “has serious concerns” that Huawei and ZTE are “forced to comply with extrajudicial instructions from foreign governments in ways that would be contrary to Canadian law” or contrary to Canadian interests; and
- Given the nature of the dynamics of the international supply chain and “similar Allied concerns”, Canada believes that “it will become increasingly difficult for Canada to maintain a high level of security testing for certain network equipment by a number of potential suppliers”. .
The federal government has long faced pressure to ban the Chinese telecommunications giant from participating in Canada’s fifth-generation telecommunications infrastructure.
The Liberals have been promising for years that a communication on the issue is forthcoming, citing the need to follow the right processes after launching a broader review of the security of 5G wireless technology in 2018.
On Thursday, Mendicino said that this review “was carried out thoroughly, responsibly and with all the necessary care to protect our national security.”
The transition to 5G is tuned to provide higher speeds and improved interconnectivity. However, according to the federal government, this is also a concern that “the use of vulnerabilities by malicious participants will be more difficult to prevent and that incidents will have a greater impact than previous generations of wireless technology.”
“In the 21st century, cybersecurity is national security. “From cyber attacks, to electronic espionage, to ransom, the threats to Canadians are greater than ever and we will protect them,” Mendicino said.
“Against this background, we must be sure that we are protecting Canada’s telecommunications system. 5G networks are being installed across the country and this innovation is a great opportunity for competition and growth. And yet this opportunity comes with risks,” he said. .
Champagne said the government could develop its policy in the future to include other companies considered risky.
“Because if you think about the Internet of Things, if you think about autonomous vehicles, we all know that the distributed nature of the points that will be connected to the network, we must protect our network,” he said.
In an interview with Power Play on CTV News Channel, Huawei Canada’s Alihan Welsh said the company was “obviously disappointed” with the move, but said the “so-called” ban was “really only aimed at a small and diminishing aspect of our business in canada
Welsh said the technology giant would carefully analyze upcoming legislation to ensure it is in line with the Canada-China Foreign Investment Agreement, but at least in the short term Huawei will still play a role in Canada’s telecommunications network.
“And yes, even its 5G network, because of the software we are currently implementing with our telecommunications partners, with the knowledge of the government.”
In response to the news, conservatives, who have long called for a ban on Huawei, condemned the liberal’s “inaction” as “international shame”, suggesting the delay cost millions of dollars, although some major wireless service providers have already given up. works with Huawei.
“Either the liberal government will seek compensation from these companies, or the costs will be passed on to consumers. In both cases, Justin Trudeau is forcing Canadians to bear the cost of his inaction and failure, “said the party’s public safety. critic Raquel Dancho and industry critic Gerard Deltel in a statement.
The new Democrats also said the move was long overdue and called for a “real explanation” for why it had taken so long.
“This delay in banning Huawei is costing Canadian consumers. Canadians’ national security and privacy rights have been jeopardized for no good reason… Meanwhile, the internal telecommunications market has also been severely affected as they have been left unaware of Canada’s future of 5G, said the NDP MP and industry critic. Brian Mas in a statement.
WHY DID THEY REVIEW FOR YEARS?
Observers suspected that the main political decision was delayed in part due to the detention in China of Michael Spaver and Michael Kovrig, which is largely seen as revenge for the arrest of Huawei CEO Meng Wangzhou in Canada.
Spavor and Kovrig were released in September 2021 after extradition against Meng was terminated. At the time, Prime Minister Justin Trudeau said he would share Canada’s decision on what to do with Huawei “in the coming weeks”.
Canada was the last member of the Five Eyes intelligence union, with Australia, New Zealand, the United Kingdom and the United States already deciding to either ban or restrict Huawei from participating in their 5G networks.
Champagne told reporters that the federal government’s decision includes consultation with allies. Asked if Canada was now preparing for Chinese revenge, the industry minister said the right decision had been made.
However, former CSIS director Ward Elcock told CTV News Channel’s Power Play on Thursday that he suspected China would retaliate in some way.
“There will probably be some kind of revenge. What this will be is difficult to guess, but it can come in almost any form, “he said, referring to moments in the past when China punished Canada by imposing trade restrictions.
The announcement comes after China lifted a three-year ban on rapeseed exports by two Canadian companies, which has been in place since March 2019 and is also seen as a retaliation for Mang’s arrest, something China has denied.
In a statement issued Wednesday night in response to the ruling, International Trade Minister Mary Ng and Agriculture Minister Marie-Claude Bibo said the government would continue to work to protect the interests of Canadian farmers, businesses and exporters “at home and abroad.” in overseas markets, including China. “
With files from Joyce Napier and Sarah Turnbull from CTV News
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