Huawei faces new U.S. charges while Telus, France embrace company

16-count indictment filed against Huawei . . .

The U.S. Justice Department filed 16 charges against Huawei yesterday, accusing the company of racketeering, violation of U.S sanctions on Iran and North Korea, and stealing trade secrets. The indictment names Huawei, several of its subsidiaries, and the company’s CFO, Meng Wanzhou, who has been under house arrest in Vancouver since December 2018 and will next appear in court in June 2020. Huawei vehemently denies the charges.

Canada-China relations remain rocky . . .

The arrest of Meng on a U.S. extradition warrant and the detainment of two Canadians, Michael Spavor and Michael Kovrig, shortly thereafter have soured Canada-China relations. An APF Canada dispatch on the subject shows that Canadian exports to China dropped by C$1.5 billion in the first three quarters of 2019, with the Prairie Provinces suffering most from this decline. Meanwhile, public sentiment toward Huawei is on the decline in Canada: a new survey by the Angus Reid Institute shows that 69% of Canadians think Huawei should be banned from the country’s 5G network due to security concerns.

Telus to rollout 5G plan with Huawei equipment . . .

France’s economic minister confirmed yesterday that France will not exclude Huawei from its nationwide 5G rollout. The company currently has a 25% share of France’s telecommunication equipment market. In the past month, Huawei has also received approvals from the U.K. and Germany to participate in their 5G networks. The U.S.’s European allies seem to be resisting Washington’s calls to ban Huawei. Canada has yet to make its decision on Huawei, but Canadian telecom Telus Corp announced yesterday that it plans to use the Chinese company’s equipment in its imminent 5G rollout.

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