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Benzinga
Benzinga
Business
Akanksha Bakshi

Canada Joins Five Eyes Allies, Bans Huawei/ZTE 5G Equipment: Reuters

Canada bans the use of Huawei Technologies Co Ltd and ZTE Corp (OTC: ZTCOF) 5G equipment from China to protect national security, joining the rest of the so-called Five Eyes intelligence-sharing network, reported Reuters.

What happened: "We intend to exclude Huawei and ZTE from our 5G networks. Providers who already have this equipment installed will be required to cease its use and remove it under the plans we're announcing today," Industry Minister Francois-Philippe Champagne told reporters in Ottawa.

Champagne further added that companies who will be required to remove their 5G gear by June 2024 would not be reimbursed. Companies using their 4G equipment must be removed by the end of 2027.

The rest of the Five Eyes network - which consists of Canada, the United States, Britain, Australia, and New Zealand - has already banned the equipment.

China expressed opposition to this decision. "We will take all necessary measures to safeguard the legitimate interests of Chinese firms," foreign ministry spokesman Wang Wenbin told reporters in Beijing on Friday.

In an interview with the Canadian Broadcasting Corporation, Alykhan Velshi, Huawei's vice president of corporate affairs in Canada, stated that the company is still waiting to hear "what kind of national security dangers they think Huawei poses."

Velshi added that Huawei still has 1,500 employees in Canada, largely in research and development, and continues to sell products such as mobile phones.

Photo via Wikimedia Commons

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