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Bloomberg

One of Canada’s largest phone companies is standing by its partnership with Huawei Technologies Co., the Chinese firm at the center of rising diplomatic tensions between Beijing and Ottawa.
Telus Corp. sent a memo to employees last week, sticking by its work with Huawei, the Globe and Mail newspaper reported. The memo was signed by Eros Spadotto, executive vice president of technology strategy at the Vancouver-based company.
“Clearly, Huawei remains a viable and reliable participant in the Canadian telecommunications space, bolstered by globally leading innovation, comprehensive security measures, and new software upgrades,” the memo said, according to an excerpt published by the Globe. It hailed the “positive, transparent and innovative-centric partnership we have enjoyed with Huawei.”
Huawei founder sees limited impact from 5G pushback
Telus spokespeople didn’t immediately return requests for comment from Bloomberg News on Saturday.
Canada is currently conducting a security review ahead of a rollout of 5G technology, including whether to ban Huawei. China’s ambassador to Canada, Lu Shaye, warned this week of repercussions if Canada did that.

Other so-called Five Eyes countries including the U.S. and Australia have placed restrictions on Huawei’s operations given its close ties to the Chinese government, moves that place pressure on Canada to make a decision.
Huawei founder on why he joined the Chinese Communist Party
The Trump administration, meanwhile, is preparing an executive order that could significantly restrict Chinese state-owned telecom companies from operating in the U.S. over national security concerns, according to people familiar with the matter.
The order, which hasn’t yet been presented to the president, would not mention companies such as Huawei or ZTE Corp. by name and would not outright ban U.S. sales by the firms. But it would give greater authority to the Commerce Department to review products and purchases by companies connected to adversarial countries, including China, one of the people said.

In the Telus memo, Spadotto says the company has worked closely with the federal government to address security concerns. The note says a Huawei ban would undermine the investments Telus has already made in its existing networks. Huawei is the third-biggest supplier to Telus, according to supply chain data compiled by Bloomberg. The Chinese firm has also worked with BCE Inc.’s Bell Canada.
Media Q&A with Huawei founder Ren Zhengfei
Royal Bank of Canada analysts expect Huawei to be barred from the 5G network in Canada but not existing ones. “We would expect any such boycott and subsequent ‘rip and replace’ to apply to 5G equipment only, leaving most 3G and 4G equipment intact,” RBC Capital Markets analysts Drew McReynolds and Caleb Ho said in a note this month.
Canada, at the request of the U.S., arrested Huawei Chief Financial Officer Meng Wanzhou in Vancouver in December, triggering a rising feud with China. China then seized a pair of Canadians, including a former diplomat, and has sentenced a third to death.

Prime Minister Justin Trudeau, speaking Friday during a news conference in Sherbrooke, Quebec, again criticized China’s “arbitrary” capture of the two Canadians, and the death sentence for a third -- a penalty the U.S. has called politically motivated. Trudeau also criticized close ties between Huawei and the Chinese government.
Prisoner in Vancouver: Huawei CFO awaits her fate in splendour
“One of the things that is of concern in the situation is the apparent blending of Chinese commercial interests with Chinese political positioning and consequences,” Trudeau said. “This is something that I think should be of concern, not just to Canadians, but to people around the world.”


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Huawei Technologies

Canadian telco Telus backs China’s Huawei as 'viable and reliable'

Huawei chief financial officer Meng Wanzhou arrives at a parole office with a security guard in Vancouver, British Columbia, Wednesday, Dec. 12, 2018. (Darryl Dyck/The Canadian Press via AP)

Ren Zhengfei, founder and chief executive officer of Huawei Technologies Co., stands for a photograph following an interview at the company's headquarters in Shenzhen, China, on Tuesday, Jan. 15, 2019. Ren, the billionaire telecom mogul, broke a years-long silence as his technology empire faces its biggest crisis over three decades of existence. Photographer: Qilai Shen/Bloomberg

China's Ambassador to Canada Lu Shaye delivers a speech during the Belt and Road Initiative (BRI) Conference at Carleton University in Ottawa, Ontario, Canada, December 14, 2018. REUTERS/Chris Wattie

The Huawei booth is seen during CES 2019 consumer electronics show at the Las Vegas Convention Center in Las Vegas, Nevada.(Photo by Robert LEVER / AFP)

Huawei founder Ren Zhengfei says he does not expect big impact from 5G pushback

Ren Zhengfei, founder and chief executive officer of Huawei Technologies Co., speaks during an interview at the company's headquarters in Shenzhen, China, on Tuesday, January 15, 2019. Ren, the billionaire telecom mogul, broke a years-long silence as his technology empire faces its biggest crisis over three decades of existence. Photographer: Qilai Shen/Bloomberg

Prisoner in Vancouver: Huawei CFO Meng Wanzhou awaits her fate in splendour

Meng’s arrest at the behest of the US has sparked an unprecedented diplomatic row. Photo: Bloomberg

Canada Huawei 5G decision said to be months away

Huawei is racing to partner with Canadian telcos to develop 5G technology. Photo: EPA

Huawei founder Ren Zhengfei on why he joined China’s Communist Party and the People’s Liberation Army

Employees work on the assembly line of a Huawei Technologies Co. mobile phone plant in Dongguan, China, on Tuesday, January 15, 2019. Ren Zhengfei, the billionaire founder of Huawei, broke years of public silence to dismiss U.S. accusations the telecoms giant helps Beijing spy on Western governments and to praise Donald Trump for his tax cuts. Photographer: Qilai Shen/Bloomberg

This TV image provided by CTV to AFP shows Huawei Technologies Chief Financial Officer Meng Wanzhou as she exits the court registry following the bail hearing at British Columbia Superior Courts in Vancouver, British Columbia on December 11, 2018. - Meng Wanzhou, the chief financial officer of Huawei, was released on Can$10 million (US$7.5 million) bail on Tuesday in a case that has rattled relations between China, the United States and Canada. (Photo by - / CTV / AFP) / - Canada OUT

Billionaire telecom mogul Ren Zhengfei, founder and chief executive officer of Huawei Technologies Co., broke a years-long silence as his technology empire faces its biggest crisis in over three decades of existence. Photo: Bloomberg

Canadian telco Telus backs China’s Huawei as 'viable and reliable'

Telus sent a memo to employees last week, sticking by its work with Huawei