The Canadian federal government has no plans to use its new cyber legislation to ban Chinese telecommunications equipment companies Huawei Technologies and ZTE from Canadian networks, despite describing the law as critical to national security.
The government passed amendments last week to the Telecommunications Act, granting Ottawa the power to ban telecom gear from companies deemed security threats and even remove existing equipment from Canadian networks. The legislation, known as Bill C-8, was widely seen as targeting the two fast-growing Chinese firms.
Government Assurances and Context
A government source stated there are no plans to use the new powers against companies from China or elsewhere, as Ottawa seeks to mend bilateral ties and diversify exports beyond the United States. This comes after a meeting between Chinese President Xi Jinping and Canadian Prime Minister Mark Carney in Beijing on January 16, 2026.
After the legislation passed, a government news release said the law allows the Carney Liberals to implement “concrete measures” strengthening telecommunications network security. Defence Minister David McGuinty was quoted: “Canada’s national security depends on strong cyber defence.” However, spokespeople for McGuinty and Industry Minister Mélanie Joly did not respond to interview requests.
Analyst Perspectives
Analysts expect the government to stay quiet on the matter. Iain Grant, a telecommunications analyst at SeaBoard Group, said the government does not need to publicly direct telecom companies to avoid Huawei and ZTE because their gear already represents too much risk. “Why would you risk it? Although there may be some initial savings, nobody is coming to assist you in recovering the costs to remove and replace,” Grant said.
Grant noted that potential customers like Bell Canada, Rogers Communications, Telus, and Vidéotron are well aware which equipment companies are seen as national security threats. Fen Hampson, an international affairs and Internet governance specialist at Carleton University, said the legislation didn’t need to explicitly mention China: “It’s pretty clear who they might have in mind.”
Previous and New Measures
Security concerns over telecom networks are longstanding. In 2022, Ottawa banned the use of new 5G equipment from Huawei and ZTE. The new legislation goes further by giving the federal cabinet authority to order telecom services companies to stop using products from specified suppliers and require removal of existing equipment, with enforcement mechanisms and penalties for non-compliance.
