Huawei May Face Exclusion in Canada Network Plan

Created: 2012-10-10 13:04 EST

Category: Business
More bad news for Chinese telecommunication giants Huawei and ZTE. 
Earlier this week, the US House of Representatives Intelligence Committee urged businesses in the United States not to do business with the two Chinese companies. 
Now, the Canada government is also strongly indicating that they will follow suit, citing the same reasons—the Chinese companies are seen as a national security risk. 
Questions have been raised over Huawei’s and ZTE connection to the Chinese regime, which is gaining a reputation for virulent cyber warfare. 
At a news conference on Tuesday, spokesman for Canadian Prime Minster Stephen Harper said they would invoke a national security exception allowing them to block the companies without violating international trade obligations. It’s been deemed too risky to have Huawei and ZTE put together the network for government phone calls, emails and data center services.
The decision would only affect the handling of government networks. Huawei has a thriving business in the Canadian private sector. Huawei and ZTE are the world's second- and fifth-largest makers of wireless telecoms gear.