Canada has announced that it will prohibit two of China's largest telecom equipment manufacturers from using its 5G network.
On Thursday, the country's minister of industry announced that ZTE and Huawei were being restricted.
Francois-Philippe Champagne claims the move will enhance Canada's mobile internet service and "protect the safety & security of Canadians".
Huawei Canada stated that it was "disappointed” by the decision. It claimed it was political.
A statement stated that "this is an unfortunate decision that has no connection with cyber security or any other technologies in question."
Many countries, including the USA, Australia, New Zealand, and the UK have placed restrictions on firms.
Together with Canada, the four countries form an intelligence-sharing agreement called "Five Eyes". It was created during the Cold War to provide a means of monitoring the Soviet Union and exchanging classified information.
Canada's announcement was widely anticipated, since its allies had already banned Huawei and ZTE access to their high-speed networks.
Champagne spoke to reporters in Ottawa, Canada. He said that the decision was made after a thorough review by security agencies and consultations with close allies.
He stated, "Let me make it very clear: we will always protect Canada's safety and security and will take all necessary actions to safeguard our telecommunications infrastructure."
This is the right decision in a 5G world where we rely on our network more and more every day.
According to Reuters, a spokesperson from the Chinese embassy in Ottawa stated that Beijing views Canada's security concerns as a "pretext" for political manipulation.
China's spokesperson also claimed that Canada was working with the US in order to suppress Chinese businesses.
BBC asked for comment from the Chinese Embassy in Ottawa, but they did not respond immediately.
A statement stated that "Banning Huawei equipment and services in Canada will cause significant economic loss and drive up communications costs for Canadian consumers."
"Unfortunately, we cannot control this decision as a company. We will, however, do all we can to protect the legitimate interests of our customers and partners.
ZTE, however, said that it had rejected the "premise", as well as the announcement by the Canadian government, and called it "highly speculative".
The firm stated that it has always adhered to international standards and best practice and opened up its cyber security labs for regulators and other stakeholders to verify ZTE's security.
The fifth generation of mobile internet networks, 5G, offers faster data downloads and uploads.
You can also access the internet from multiple devices simultaneously.
This is because data usage is on the rise and as music streaming continues to grow in popularity. This is causing governments and mobile network operators to invest in their telecommunications infrastructure.
Canadian authorities have ruled that no Canadian telecom firms will be permitted to use ZTE and Huawei equipment.
Champagne stated that companies who have already installed equipment from Chinese manufacturers should now take it down.
In September 2018, Canada was the first to announce a review of Huawei equipment.
Over national security concerns, some of China's largest technology and telecoms companies have been targeted by the US and other Western countries in recent years.
The US President Joe Biden in November signed legislation to stop companies deemed security threats from being granted new telecom equipment licenses in the United States.
This means that equipment made by ZTE, Huawei and three other Chinese companies is not allowed to be used in US telecoms networks.
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