Huawei exec’s arrest puts focus on Chinese company’s ties in Canada
Universities with research partnerships say it’s business as usual, telecoms mum
TORONTO It’s no secret that Huawei Technologies Co. is deeply entrenched in Canada after a decade of doing business in the country. But the future of the Chinese telecommunications giant’s relationships in Canada is in question following the arrest of its chief financial officer Wanzhou Meng, industry experts said Thursday.
Huawei’s radio equipment is used by Canada’s three largest telecom companies, it spends millions to conduct research in partnership with 10 universities and it employs more than 700 people at Huawei Canada, more than half of whom work in research and development. It has even partnered with BCE Inc. and Telus Corp. to test 5G technologies for the next-generation networks needed for real-time applications like self-driving cars.
Canada’s Big Three telecoms would not comment on whether or how Meng ’s arrest in Vancouver on the weekend on unspecified charges will affect their dealings with Huawei, while Canadian universities said it’s business as usual when it comes to their relationships with the company.
The arrest comes as Canada is under political pressure to re-evaluate its relationship with Huawei. Three members of the Five Eyes intelligence alliance — the United States, Australia and, as of last week, New Zealand — have blocked Huawei equipment from 5G networks over fears China could use it to spy, steal data or launch cyber attacks. In the name of national security, they want Canada and the United Kingdom to do the same.
So far, Canada hasn’t distanced itself. The Communications Security Establishment has said there are “robust protections” in place to ensure telecom network security. The national cybersecurity agency revealed it uses third-party labs to test telecom equipment, including Huawei’s, and is also conducting a review into best practices to protect 5G networks.
There is no public evidence that Huawei is involved in espionage, and the company insists it’s not tied to the government despite the military history of its founder Ren Zhengfei — Meng ’s father.
Yet in a rare public appearance this week, Canadian Security Intelligence Service director David Vigneault acknowledged the risk of hostile actors gaining access to sensitive information through the telecommunications industry, although he did not identify a specific country or a company.
“CSIS has seen a trend of statesponsored espionage in fields that are crucial to Canada’s ability to build and sustain a prosperous, knowledge-based economy. I’m talking about areas such as A.I., quantum technology, 5G, biopharma, and clean tech,” Vigneault said at a business event in Toronto.
Canadian telecoms do not use Huawei equipment in their core networks for security reasons, but they do use its radio access equipment on the networks’ peripheries.
There would be “huge financial implications” if Canada decided to outright split with Huawei, as operators would have to replace gear in their 4G LTE networks, said Ali Ghorbani, director of the Canadian Institute of Cybersecurity and dean of the University of New Brunswick’s Faculty of Computer Science.
Whether Canada should follow its allies and block Huawei equipment from 5G networks going forward is a separate question. The arrest will probably push Canada to make a decision, Ghorbani said.
“It’s probably a smart decision to not allow it for our core and backbone networks of the country,” he said, though he noted that there’s no concrete proof that the equipment has previously been altered or used for espionage.
Bell and Telus have both partnered with Huawei to develop 5G technologies. Bell did not respond to a request for comment and Telus declined to comment.
Rogers Communications Inc. also declined to comment on its relationship with Huawei, but did point out that it partnered with Ericsson to build its 5G network.
Meanwhile, Canadian universities that collaborate with Huawei on multi-million dollar research projects indicated they plan to continue their work unless told otherwise.
“We evaluate every research project and partnership on its merits and would take advice of the Government of Canada if they had national security concerns about our partnership with any company,” University of Waterloo spokesman Matthew Grant said in an email.
“We have not been advised of any impact today’s news will have on partnerships between the company and the numerous universities in Canada it has relationships with.”
The University of Toronto will also respect any direction it receives from the government, according to a statement from Vivek Goel, vice-president of research and innovation.
The University of British Columbia noted its agreement with Huawei allows for public disclosure of discoveries in research journals and at scientific conferences, according to a statement from Gail Murphy, vice-president of research and innovation. It will continue its partnership.
For its part, Huawei said Meng ’s arrest has nothing to do with its operations in Canada.
“The events of December 1st are in no way related to Huawei Canada’s business and research operations,” spokesman Scott Bradley said Thursday.
As universities maintain the status quo, the government can expect more pressure to come up with an answer on Huawei’s involvement in 5G.