China warns of blowback if Canada bars Huawei's 5G bid

Relations between China and Canada turned frosty last month after the Canadian authorities arrested Meng Wanzhou, chief financial officer of Huawei, on a US extradition request.
Relations between China and Canada turned frosty last month after the Canadian authorities arrested Meng Wanzhou, chief financial officer of Huawei, on a US extradition request.PHOTO: EPA-EFE

Beijing's envoy urges Canadian government to make 'wise decision' on the issue

OTTAWA • China's envoy to Canada has warned Ottawa there would be repercussions if it banned technology firm Huawei Technologies from supplying equipment to Canadian 5G networks, the latest blast in a deepening bilateral dispute.

Ambassador Lu Shaye, speaking at a news conference, did not give details. Canada is currently studying the security implications of 5G networks but, unlike some allies, has not announced that Huawei equipment will be excluded.

"If the Canadian government does ban Huawei from participating in the 5G network, then as for what kind of repercussion there will be, I'm not sure, but I believe there will be repercussions," Mr Lu said through an interpreter, urging Ottawa to "make a wise decision on this issue".

Relations between China and Canada turned frosty last month after the Canadian authorities arrested Meng Wanzhou, chief financial officer of Huawei, on a US extradition request.

China subsequently detained two Canadian citizens and this month a court retried a Canadian man who previously had been found guilty of drug smuggling and sentenced him to death.

Prime Minister Justin Trudeau accused Beijing of arbitrarily using the death penalty and called world leaders to solicit their support.

Mr Lu said when Canadian Foreign Minister Chrystia Freeland goes to the World Economic Forum in Davos next week, she should avoid "microphone diplomacy" and not try to rally support.

 
 

"If Canada has a sincerity of resolving these issues, then Canada will not do such things. We hope Canada thinks twice before making any actions," he said.

In response, Ms Freeland said Canada had no intention of changing its approach.

"We will continue to speak every day with our allies about this situation," she told reporters on the sidelines of a Cabinet retreat in Sherbrooke, Quebec.

She declined to give details about the review into 5G technology. A Canadian source directly familiar with the case said the study would not be released in the immediate future.

Huawei has a relatively small Canadian operation, employing just shy of 1,000 people. But the company said early this year that it had become the 25th largest research and development funder in Canada, thanks to partnerships with local universities.

Separately in Britain, Oxford University said on Thursday it has decided to forgo further funding from the tech giant as scrutiny grows in Europe over the telecom firm's relationship with the Beijing government.

But a Huawei spokesman said the company had not been informed and would "await the university's full explanation".

Huawei has been under fire in recent months with the arrests of Meng in Canada and an employee in Poland, along with a worldwide campaign by Washington to blacklist its equipment.

China Daily yesterday reported Huawei founder Ren Zhengfei as telling a roundtable for domestic media that the political problems it currently faces will not hurt its long-term business and the company will double its revenue in five years.

REUTERS, AGENCE FRANCE-PRESSE

A version of this article appeared in the print edition of The Straits Times on January 19, 2019, with the headline 'China warns of blowback if Canada bars Huawei's 5G bid'. Print Edition | Subscribe