The federal government will announce up to $40 million for Finnish telecom giant Nokia on Thursday to conduct research on 5G wireless technology in Canada.
The funding comes as Ottawa is in the middle of a comprehensive national security review of the potential involvement of NokiaB次元官网网址檚 Chinese rival, Huawei, in CanadaB次元官网网址檚 eventual fifth generation mobile network.
Ottawa is also locked in a diplomatic dispute with Beijing following CanadaB次元官网网址檚 Dec. 1 arrest of Huawei executive Meng Wanzhou at the request of the United States.
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Huawei, Nokia and SwedenB次元官网网址檚 Ericsson are among the top contenders to help CanadaB次元官网网址檚 telecom companies, including BCE and Telus, build the countryB次元官网网址檚 5G mobile networks.
Three of CanadaB次元官网网址檚 partners in the Five Eyes intelligence-sharing group B次元官网网址� the United States, Australia and New Zealand B次元官网网址� have banned the use of Huawei products in 5G network development based on fears the company could spy on behalf of China.
Federal Innovation Minister Navdeep Bains, who along with Public Safety Minister Ralph Goodale is responsible for overseeing the 5G security review, has said the analysis is not just about Huawei and is designed to assess how best to protect Canadians.
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Bains finalized the Nokia deal Thursday in Davos, Switzerland, where heB次元官网网址檚 participating in the World Economic Forum.
CanadaB次元官网网址檚 ongoing scrutiny of Huawei has created concerns within the Chinese government. Lu Shaye, ChinaB次元官网网址檚 envoy to Ottawa, warned Canada last week of possible repercussions if the government ultimately decides to bar Huawei from building the countryB次元官网网址檚 5G networks.
A Chinese foreign-ministry spokeswoman later tried to play down LuB次元官网网址檚 remarks, by saying the ambassador didnB次元官网网址檛 mean that China intended to interfere in OttawaB次元官网网址檚 decision-making process. Hua Chunying also told journalists in Beijing on Monday that losses would be inevitable since Huawei is a leading supplier of 5G technology, according to a transcript on the foreign ministryB次元官网网址檚 website.
Few details are available about CanadaB次元官网网址檚 5G security review but a well-placed source has said a decision is still months away.
The federal funding will back NokiaB次元官网网址檚 research work in Canada to help telecom networks meet the needs of 5G technology. The company is also developing cybersecurity tools to protect telecom networks.
The government is expected to sell the deal as a way to support more than 2,000 of NokiaB次元官网网址檚 jobs already in Canada and to create 237 new positions. Nokia CanadaB次元官网网址檚 projects, valued at over $214 million, are based in Mississauga, Ont., and the Ottawa suburb of Kanata.
The issue of whether Huawei is allowed to build the countryB次元官网网址檚 5G networks has connections to a diplomatic crisis over CanadaB次元官网网址檚 recent arrest of Meng, the companyB次元官网网址檚 chief financial officer and daughter of its founder.
Canadian police arrested Meng at VancouverB次元官网网址檚 airport at the request of American authorities, who are seeking her extradition on fraud allegations.
Her arrest has angered Beijing and the case is at the heart of tensions between Canada and China. The Chinese government says Meng has done nothing wrong and has demanded her release, warning Canada of severe consequences if it doesnB次元官网网址檛 free her.
After her arrest, China detained two Canadians. Michael Kovrig, a Canadian diplomat on leave, and Michael Spavor, an entrepreneur, were taken in on allegations of engaging in activities that have endangered ChinaB次元官网网址檚 national security.
In recent weeks, China also sentenced another Canadian, Robert Lloyd Schellenberg, to death in a sudden retrial of his drug-smuggling case. He was originally handed a 15-year jail term in 2016, but the court gave him the death penalty after revisiting his case.
Andy Blatchford, The Canadian Press
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