Canada to announce US$30 billion 5G research deal with Nokia
26 January, 2019
Difficulties facing Canada’s ties with China are not showing any clear signs of being resolved soon, and a new deal between Ottawa and Huawei’s 5G competitor Nokia may not help.
Canada’s federal government is set to announce a US$30 billion deal to conduct research on 5G wireless networks in the country, The Canadian Press reported.
The news comes as Ottawa is in the process of a national-security review that could have implications for Chinese telecommunication firm Huawei’s chances for selling its 5G technology in Canada.
Three of Canada’s fellow members of the Five Eyes intelligence-sharing network – Australia, New Zealand and the United States – have already said they will not use Chinese firms for 5G.
China’s ambassador in Canada made headlines recently when he warned that there would be consequences if Huawei was blocked from participating in the country’s upgrade to fifth-generation wireless networks.
His comments were walked back by Beijing, with a Foreign Ministry spokeswoman assuring that China has no intention of interfering in Ottawa’s right to make their own decisions. But she added that not using Huawei would be Canada’s loss, as the Chinese company is ahead of the competition.
The 5G competition, however, has been overshadowed of late by the arrest of Huawei chief financial officer Meng Wanzhou by Canadian authorities at the behest of the US government. Beijing has ratcheted up pressure on Ottawa to free Meng, while officials in the Canadian government insist they have no choice but to honor a legal process required under an extradition treaty with the United States.