Canada announced that only local contractors will be used in building a secure communication network, for fear that outside sources pose a security threat.
Although no specific company was denied participation in the project, both Huawei and ZTE are rumored to have been left out because of a recent US panel debate questioning both companiesâ€™ affiliation to the Chinese government.
Their parts and equipment will not be used in building the secure communication network as critical broadcasted information could be collected and stored by both manufacturers.
“The government’s going to be choosing carefully in the construction of this network, and it has invoked the national security exception for the building of this network,” said Andrew MacDougall, spokesman for Canada’s prime minister. “I’ll leave it to you if you think…Huawei should be a part of a Canadian government security system“.
Since Huawei is already a subsidiary Canadian company, a spokesperson said the â€œnational security exceptionâ€ doesnâ€™t apply to them and bidding for Canadian projects is still legal. The companyâ€™s image will not be affected by the US panel ruling and theyâ€™ll continue to provide telecom networking equipment to its partners, said the same source.
“The national security exception only applies to foreign companies,” said Scott Bradley, a spokesman for Huawei Technologies Canada Co Ltd. “Huawei is fully incorporated in Canada, and operates as a subsidiary Canadian company. This alone effectively enables us to bid on any potential procurement opportunities.“