Three years have passed since the US government blacklisted the company over concerns about its network equipment. It seems that Canada is finally going to join the party after the ongoing trade tension between the US and China.
Trudeau is close to a decision that would see Canada place a trade ban on the Chinese company. It would be the same as what the users faced back in 2019.
The report states that Canada has delayed the decision in an effort to avoid provoking China. The relationship between these two countries deteriorated in the last few years, as evidenced by the arrest of the CFO of Huawei. China imprisoned former diplomat Michael Spavor and businessman Michael Kovrig.
The Canadian Minister of Public Safety and the Minister of Innovation, Science and Economic Development held a press conference after the report was published. The officials have confirmed that the trade ban is related to the cybersecurity concerns.
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During the press conference, a statement was provided.
We are announcing our intention to prohibit the inclusion of the products and services of the two Chinese companies in Canada's telecommunication systems as a result of a full review by our security agencies and consultation with our closest allies.
We will always protect the safety and security of Canadians and we will take any actions necessary to safeguard our telecommunication infrastructure.
Telecommunication companies in Canada will not be allowed to include it in their products or services. Providers who have installed this equipment will be required to remove it under the plans we are announcing today.
Franois-Philippe Champagne gave an answer to the questions about why it took three years for Canada to make a decision.
This has never been a race. This is about making the right decision. This is about providing a framework to protect our infrastructure in a world where we rely more and more in our daily lives on our network. This is the correct decision.
The relationship between Canada and China can no longer be resolved, with the relationship stuck in the middle, after the US stepped in with a deferred-prosecution deal with Meng.
We can expect a similar result to what happened here in the US. It would be safe to assume that the sale of 5G-enabled Huawei phones would no longer be allowed.
This would be another blow to the company, which has seen a rapid decline in sales across the globe. The sales revenue of $428 million was a high point for the company. At that time, the launch of the P30 was coming up, and it was the first time that the phones had been sold in Canada.
The Mobile Vendor Market Share report for Canada shows a decline in December. The market share of the company went from 5% in December to 2% in April. The report shows that in April 2022, after the launch of the popularPixel 6 and 6 Pro lineup of phones in the fall of 2021, the company's market share increased to 3%. Even more damning is that the market share of the two companies is also below each other.
In August of last year, the company revealed its revenue for the first half of the year. The consumer business saw a 50% drop in sales as the overall sales declined by almost 30%.
The various trade sanctions prevent the company from purchasing 5G chips and related technologies from US-based companies. You can't access, download, or install any apps from the Play Store or other Google services on those devices.
The Mate Xs 2 is a foldable phone that has an outer folding design as opposed to an inner folding design like the Z Fold 3. Unlike Samsung, which uses a 5G-enabled processor, HUAWEI uses a 4G-only version of the same processor.
We will provide more information once the story is made available.
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