The Canadian government said that its fifth-generation network operators will be prohibited from using equipment from the companies "ZTE" and "Huawei" due to security concerns.

The Canadian government stated that network operators applying for frequencies for fifth-generation networks in Canada will be prohibited from using equipment from the Chinese technology giants, and Canadian Minister of Innovation, Science and Industry François-Philippe Champagne said the decision follows a "comprehensive review" by the country’s security agencies and consultations with close allies.

Five Eyes Alliance

The United States, Britain, Australia, and New Zealand, the other countries in the "Five Eyes" intelligence alliance that includes Canada, have already imposed a ban on Huawei equipment.

The Five Eyes (FVEY) is a term referring to an intelligence alliance that includes the United States, the United Kingdom, Canada, Australia, and New Zealand, under the multilateral UK-US treaty, which specializes in cooperation in signals intelligence.

The origins of this alliance date back to the post-World War II period when the allies issued the Atlantic Charter to set their goals for the post-war world. During the Cold War, the Five Eyes alliance developed the ECHELON surveillance system to monitor communications of the former Soviet Union and the Eastern Bloc, and it is currently used to monitor communications worldwide.

Canadian authorities arrested Huawei executive "Meng Wanzhou" at Vancouver International Airport on December 1, 2018, facing American accusations of fraud and conspiracy. China responded then by detaining Canadian citizens, and analysts considered this the beginning of a direct clash between China’s Communist leadership and the members of the Five Eyes alliance.

The Safety and Security of Canadians

François-Philippe Champagne, Canadian Minister of Innovation, Science and Industry, said in a press conference, "We will always protect the safety and security of Canadians, and we will take any necessary measures to protect our telecommunications infrastructure."

“ZTE” and “Huawei” have also been put under suspicion in other Western countries where competing companies allege strong ties to the Chinese military.

The Canadian Ministry of Innovation, Science and Industry stated in a statement that "The Canadian government has serious concerns regarding providers such as Huawei and ZTE, who may be compelled to comply with directives from outside the jurisdiction issued by foreign governments in ways that conflict with Canadian laws or undermine Canadian interests."

The statement said that the use of new fifth-generation equipment and managed services from Huawei and ZTE will be banned, and current fifth-generation equipment must be removed by June 28, 2024.

Chinese Condemnation

On its part, the Chinese Embassy in Canada condemned the ban decision, stating in a statement that this decision "has no basis and violates free trade and market principles."

It added in the statement, which Bloomberg News reported, that "China will take all necessary measures to protect the interests of Chinese companies."

However, it is not expected that this step will lead to major challenges for companies such as the Canadian BCE and Telus Corp, which use Huawei equipment, as both companies have already begun excluding Huawei devices from their fifth-generation network equipment over fears that the anticipated ban will take effect.

Canada has been under pressure for several years from allied countries to ban fifth-generation equipment produced by Chinese technology companies.

Ottawa said it would initiate a review in 2018, but the decision was delayed after the arrest of Huawei's CFO "Meng Wanzhou" in Canada in December 2018.