What a Complex Dilemma Within a Wicked Web of Deceit

"Perhaps because the Chinese state controls its judicial system, Beijing sometimes has difficulty understanding or believing that courts can be independent in a rule-of-law country."
"There's no point in pressuring the Canadian government. Judges will decide."
Roland Paris, former foreign policy adviser to Canadian federal government

"[The United States must] immediately correct its wrong actions."
"[Meng Wanzhou's detention at the request of the United States while transferring flights in Vancouver was a] severe violation [of her] legitimate rights and interests."
"Such a move ignores the law and is unreasonable, unconscionable, and vile in nature."
"China strongly urges the Canadian side to immediately release the detained Huawei executive -- or face grave consequences that the Canadian side should be held accountable for."
Chinese Vice Foreign Minister Le Yucheng

"There is ample evidence to suggest that no major Chinese company is independent of the Chinese government and Communist Party -- and Huawei, which China's government and military tout as a 'national champion' is no exception."
U.S. Senators Mark Warner and Marco Rubio: letter to Prime Minister Justin Trudeau

"My take is, both Ottawa and London are in a position to say ... we do lots with you in the intelligence sharing and we're not going to jeopardize our networks. We know what to do."
"The magnitude of the contracts that Huawei has here [in Canada] would be a factor, with the Canadian carriers saying to Ottawa that it's kind of too late now."
Lawrence Surtees, vice-president for communications research, IDC Canada 

Huawei will play a major part in the global rollout of 5G mobile internet [Reuters]

Huawei Technologies ... who are they? A global technological giant, that's who. And though Huawei's integration into the Canadian telecommunications and smartphone market in Canada has been gradual and isn't considered to be very large accounting for only about 3.8 percent of the market, outside Canada it is an impressive juggernaut. This year smartphone sales of Huawei devices outsold Apple. The Chinese giant employs over 170,000 people across the world's geography.

It was founded by a former officer in intelligence of the Chinese People's Liberation Army and since its founding in 1987 has grown explosively in the last decade. In 2018 alone it racked up sales of over $102-billion. Huawei, to the telecom industry in Canada as well as the federal government, is known as an important equipment supplier, albeit one identified as a security threat by American authorities.

A U.S. warrant for the arrest of Huawei's chief financial officer, Meng Wangzhou, actioned by Canadian authorities for extradition to the U.S. has infuriated China. She is accused of having manipulated U.S. banks into unknowing compliance in funding actions defying U.S. sanctions against Iran and North Korea. She has been imprisoned in Vancouver and bail conditions have not yet been resolved. Her arrest has unnerved the Chinese community from Hong Kong with their dual citizenship, in Vancouver living in palatial homes.

Huawei’s P10 smartphone. 

Photo by Sam Byford / The Verge

As a major supplier of equipment required for wireless networks (that potentially could be used to gather sensitive information for the Chinese government), Huawei and its integrated equipment have been indispensable to those using its technology. Canada's response to U.S. concerns has been to state with assurance that both the Canadian government and representatives of major telecom companies in Canada insist precautions are in effect to ensure that  Huawei cannot pose security or privacy threats.

Although the United States, Australia and New Zealand have put the brakes on Huawei in their countries for security purposes, neither Canada nor the United Kingdom have seen fit to do the same. This is a sensitive issue since Britain, Canada, Australia, New Zealand and the United States are allied in the "Five Eyes" intelligence and security network agreement, and two of the five are now viewed as possibly being compromised.

According to Lawrence Surtees, Huawei equipment has been installed in five Canadian wireless networks using fourth-generation LTE technology; replacement would be an extremely expensive undertaking at this point. Bell and Telus have included Huawei working to develop equipment for 5G wireless networks, expected to be increasingly important to carriers and their clients over the next decade. Few alternative suppliers exist of 5G network equipment.



Huawei employs about 960 people in Canada, some 600 of whom are in research and development. Its Canadian head office is located in Markham-Toronto and its Canada Research Centre is based in Ottawa, the nation's capital, with research facilities located in Markham and Waterloo in Ontario and Montreal in Quebec, Vancouver, B.C., and Edmonton, Alberta; well spread out throughout the country, represented in all major cities in various provinces.

Huawei-made smart-phones for current wireless networks are sold in Canada by Bell, Rogers, Telus and Videotron under their major brands, along with some secondary brands like Virgin Mobile, Fido and Koodo. Extrication from this well-established network would be very difficult. And disruption to Canadian industry, should Huawei decide to withdraw some of its investment would result in notable readjustments, along with injurious unemployment of personnel.

An employee monitors machinery used to adhere components to smartphone circuit boards in a manufacturing facility at ZTE Corp.'s headquarters.

Brent Lewin/Bloomberg/Getty Images