June 25, 2022

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Why has Canada banned Huawei from its 5G networks?

Government sources told AFP on Thursday (May 19) that Canada would ban Chinese telecommunications company Huawei from using its 5G network in Canada.

Following the arrest of Huawei CFO Meng Wanzhou in Vancouver in 2018, the Canadian government delayed a long-awaited move due to diplomatic tensions between Ottawa and Beijing.

The United States has warned of the security implications of giving Chinese technology giant access to key telecommunications infrastructure that can be used to spy. Both Huawei and Beijing have denied the allegations.

Canadian Minister of Industry, Franோois-Philippe Champagne and Minister of Public Safety Marco Mendicino, They made the announcement at a press conference.

“Today we announce our intention to ban the inclusion of Huawei and ZTE products and services in Canada’s telecommunications systems,” Champagne said.

“Telecommunications companies in Canada cannot add products or services to their network that endanger our national security,” he added.

Suppliers who have already installed this equipment are forced to stop using it and remove it”, He stressed.

Canada has been debating the matter for years, again delaying the first expected outcome in 2019.

At the request of the United States, the Ottawa government remained silent on the matter after China jailed two Canadians, Ambassador Michael Gowrick and businessman Michael Spover, in retaliation for the arrest of executive Meng Wangzhou in December 2018.

The trio were released in September 2021 after Meng reached a solicitation agreement with US prosecutors on fraud charges, ending their extradition fight.

Fifth generation (5G) wireless networks offer their users faster online connections and greater data capacity.

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Innovation “represents a great opportunity for competition and growth,” but “it also carries risks,” Mendicino said.

He added that “there are many hostile actors in telecommunications networks who are willing to use vulnerabilities.”

Huawei announced record profits in 2021, despite reducing its sales

One month ago, the company announced a profit of 113.718 million yuan (approximately $ 17.8 billion) in 2021, an increase of 76% over the 64.6 billion yuan ($ 10.1 billion) recorded in the previous year.

Thus, Chinese manufacturer records record profit in 2021, In spite of sanctions against the United States, reverses the course of recent years and accelerates the growth of its profits, after increasing by 3.2% in 2020; 5.7% in 2019; And 25% in 2018.

However, in the last financial year, Huawei recorded a 28.5% decline in sales after a growth of 3.8% in 2020 and 19% in 2019, to 636,807 million yuan ($ 100,000 million).

The multinational company noted that by 2021 its revenue will have declined in all geographical areas., With a 30.9% decline in China, to 413.3 billion yuan ($ 64.8 billion); 16.7% in Asia / Pacific, 53.7 billion yuan ($ 8.4 billion); 27.3% in Europe, the Middle East and Africa (Emea), up to 131.5 billion yuan ($ 20.6 billion); And 26.3% in the United States, up to 29,200 million yuan (, 4,174 million).

According to business categories, Huawei’s total revenue from telecommunications operators was 281.5 billion yuan (, 40,243 million), 7% lower than by 2020, while the company’s business revenue was 102,400 million yuan ($ 16,000 million), up 2.1%.

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In terms of consumer trade, annual revenues fell 49.6% to 243.4 billion yuan (38.2 billion euros).