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Canada's "National Security Exception" Could Pose A Problem For Huawei and ZTE

The Canadian government has announced that it may block firms hoping to construct the country's secure telecoms network if it considers them a security risk. The fact that this comes just 48 hours after the official release of a U.S. Congress report that fingered Huawei and ZTE, two tech firms with close links to the Chinese military, could not be seen as merely coincidence. Canada, however, is naming no names.

"The Government is going to be choosing carefully in the construction of this network, and it has invoked the national security exception for the building of this network, said the Canadian PM's spokesperson. "I'll leave it to you if you think Huawei should be part of a Canadian government security system."

Huawei's response was that, as it operated as a subsidiary Canadian company in Canada, it was exempt from the national security exception, as it "only applies to foreign companies."