Canada joins Five Eyes allies to ban Huawei/ZTE 5G equipment

Canada on Thursday said it plans to ban the use of China's Huawei Technologies Co Ltd and ZTE Corp 5G gear, 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."

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

Thursday's decision comes after telecom companies in Canada already opted to use other companies' 5G hardware. ZTE did not immediately respond to requests for comment.

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.

In 2020, Bell Canada and rival Telus Corp – two of the biggest wireless providers – teamed up with Sweden's Ericsson and Finland's Nokia Oyj to build fifth-generation (5G) telecoms networks, ditching Huawei for the project despite using Huawei 4G gear.

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.