Canada has effectively moved to block China’s Huawei from 5G, but cannot say so

OTTAWA (Reuters) – Canada is the only member of the Five Eyes Intelligence-sharing network that has not formally blocked Huawei from the 5G network, but has effectively made just that decision, allowing telecom companies to turn Chinese gear It is too late to force the manufacturer out.

FILE PHOTO: In this image photo taken on January 29, 2020, the smartphone with Huawei and 5G network logo is seen on the PC motherboard. REUTERS / Dado Ruvic / Illustration / File Photo

The strategy allows Canada to place both China and the United States to the right as they attack Huawei Technologies Co. Ltd., says six well-placed sources with direct knowledge of the matter.

Canada and its five-eyed allies – the United Kingdom, New Zealand and Australia – are under pressure from a fellow member of the United States to oust Huawei on security grounds.

5G networks provide data speeds up to 50 or 100 times faster than 4G networks and expect everything from telemedicine and remote surgery to self-driving cars to power.

Canada wants to fragment the firm’s next generation of equipment for the better part of two years, eliciting growing signs of impatience from the industry.

In June, Bell Canada (BCE.TO) And rival Telus Corp (T.TO) – the two largest wireless providers – together with Ericsson of Sweden (ERICb.ST) And Nokia Oyj of Finland (NOKIA.HE) To dig up Huawei for this project, building a fifth-generation (5G) telecommunications network despite Huawei using 4G gear.

A source directly familiar with the approach taken by the Liberal government of Canadian Prime Minister Justin Trudeau said, “The absence of a solution will eventually settle all problems.”

Rogers Communications Inc. (RCIb.TO), Canada’s other large wireless operator, announced in 2018 that it was using Ericsson 5G equipment.

Earlier this month, the Trump administration said it would further tighten US restrictions on Huawei, aiming to reduce its access to commercially available chips.

Canadian operators feel that US sanctions mean they have no other option but to bypass Huawei in the 5G network, at least for now, sources said, given the sensitivity of the situation Anonymity requested.

“He made political calculations and said ‘the best thing for us is not to do anything and if we don’t do something we don’t bother the Chinese, we don’t bother the Americans,” a source said. She says the officials are saying.

Living on the right side of China has become an important consideration. Huawei’s chief financial officer Meng Wenzhou has been fighting extradition to the United States since he was detained by the Canadian police in December 2018.

In response, Beijing arrested Canadian nationals Michael Spawer and Michael Koverig on espionage charges. Canada says that achieving their independence is a top priority.

A diplomatic source said, “Had it not been for two micelles, Canada would have already said that it would not use the Huawei 5G technology.” Government officials deny the fate of two men who are associated with 5G.

In 2018, both Australia and New Zealand barred service providers from using the Huawei 5G device.

Certainly, Canada will one day decide. Two other people consulting with Canadian officials say they think it’s only a matter of time before Ottawa reveals the ban.

But a source directly familiar with government thinking insisted that Ottawa had not yet come to a firm conclusion and would not be hastened, adding that officials were taking their time to avoid the UK legislation.

The British government said last month it would ban Huawei from the 5G network by ordering companies to remove equipment by 2027. In January, it initially stated that Huawei may have a limited 5G role.

“This underscores why you need to get this right and why you’re getting only one chance … We don’t want to find ourselves in a situation like the Brits where we have to go back and put toothpaste back into the tube Have to bring., “Said the source.

The office of Canadian innovation minister Navdeep Bains – who formally accuses Huawei and 5G of making decisions – said in a statement that it could not comment on a particular company. It did not say when the announcement would be made.

A Bell spokesman said that in May, Chief Executive Officer Mirko Bibik said he had no insight into the government’s thinking on Huawei and 5G. Tellus did not respond to a request for comment.

Huawei said in a statement that it believed Ottawa “when it says it is taking time to make a decision”.

Reporting by David Ljunggren; Additional reporting by Steve Shire in Ottawa; Editing by Amran Abokar, Steve Shire and Lisa Shumaker

Our standard:Thomson Reuters Trust Theory.

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