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Canada Bans Huawei and ZTE Over Cybersecurity Fears

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Canada is banning Huawei over cybersecurity concerns. This comes after a report stated that the Canadian government “delayed the decision” to avoid “stoking tensions” with China.

In addition to Huawei, Canada is also banning Chinese manufacturer ZTE over similar concerns

Following the Bloomberg report (via Android Central), Canada’s Minister of Public Safety Marco Mendicino, and the Minister of Innovation, Science and Industry, François-Philippe Champagne, held a joint press conference explaining the decision. The ministers said that the trade ban will also apply to manufacturer ZTE over similar concerns.

“We are announcing our intention to prohibit the inclusion of Huawei and ZTE products and services in Canada’s telecommunication systems as follows a full review by our security agencies and in consultation with our closest allies,” the statement read.

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“Telecommunication companies in Canada will not be permitted to include it in their networks, products or services that put our national security at risk. Providers who already have this equipment installed will be required to cease its use, and remove it under the plans we are announcing today.”

This follows a series of back and forth between Canada and China. The former arrested Huawei’s CFO, Meng Wanzhou, in 2018. In response, China detained Canadian nationals Michael Spavor and Michael Kovrig. Canada’s decision to ban Huawei and ZTE could have something to do with these past events.

The U.S. put Huawei and ZTE on the “Entity List” in May 2019

In May 2019, then-U.S. President Donald Trump placed Huawei and a few other Chinese manufacturers on the Entity List. Corporations on this list would be unable to conduct business with any U.S.-based company or organization. This was a dramatic fall from grace for the Chinese manufacturer.

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An early 2019 estimate suggested that Huawei would overtake Samsung to become the world’s largest smartphone manufacturer by the end of 2019. But the U.S. government’s decision to place the company on the Entity List upended those plans.

The latest news out of Canada is yet another setback for the Chinese manufacturer. While Huawei continues to manufacture phones, its revenues are down significantly. Huawei and ZTE haven’t responded to the Canadian government’s decision yet.