Exploring the implications of Banning Huawei 5G in Canada

The decision to bar the Chinese telecom giant Huawei from taking part in the construction of

Canada's 5G network is a difficult one that comes with a variety of potential benefits as well

as drawbacks.

Benefits

a) National Security Enhancement

The possible strengthening of Canada's national security is one of the key advantages

that would result from excluding Huawei from the country's 5G network. Concerns

have been voiced all over the world about the connections that Huawei has to the

Chinese government and the possibility that these connections could be used for

spying purposes. By deciding not to work with Huawei, Canada may be able to limit

the likelihood of sensitive information being compromised by unauthorized access or

data breaches, so protecting itself from prospective cyberattacks. (Du, 2022).

b) Strengthening Allies' Trust

Putting a ban on Canada's confidence and trustworthiness among its friends,

particularly the United States and the other Five Eyes intelligence-sharing partners,

may be improved if it continued to do business with Huawei. It is possible that the

decision to exclude a corporation with alleged ties to a hostile government may result

in stronger collaboration in the sharing of intelligence and topics pertaining to

defense, so improving both general security and geopolitical relationships. (Hoffmann

et al. 2019)

c) Promotion of Domestic Industry

A ban on Huawei might provide domestic telecoms businesses the chance to step up

and fill the hole left by the absence of Huawei's services. This may result in an

increase in investments made in local technology and innovation, which in turn may
 stimulate economic growth and the creation of new jobs. It is possible that Canada

will emerge as a global leader in technology in the future if it continues to foster its

homegrown talent. (Cheng et al., 2019).

Drawbacks

a) Technological Setback

Banning Huawei could potentially result in a delay in Canada's 5G rollout and

technological advancement. Huawei is a key player in 5G technology, and excluding

it might hinder the availability of cutting-edge infrastructure, slowing down the pace

of digital transformation across industries and impacting Canada's competitiveness in

the global tech landscape (Schoff & Ito, 2019).

b) Economic Implications

Huawei's involvement in the Canadian market could bring significant economic

benefits, including investments in research, development, and infrastructure. Banning

the company might lead to decreased foreign direct investment and potential job

losses within the tech sector. Furthermore, it might increase the costs of implementing

5G networks, which could ultimately be passed down to consumers (Ruhlig & Bjork,

2020).

c) Diplomatic Strain

Banning Huawei could strain diplomatic relations with China, potentially leading to

trade disputes or other forms of retaliation. Canada relies on China for various imports

and exports, and any disruption in this economic relationship could have ripple effects

across multiple industries. Moreover, it might hinder Canada's ability to engage in

constructive diplomatic dialogues on other global issues (Ten, 2023).

References

 Cheng, L. K., Whitten, G. W., & Hua, J. (2019). The national security argument for

protection of domestic industries. Journal of Chinese Economic and Business

Studies, 17(4), 365-388. https://doi.org/10.1080/14765284.2020.1732091

 Du, M. (2022). Huawei Strikes Back: Challenging National Security Decisions Before

Investment Arbitral Tribunals. Emory Int'l L. Rev., 37, 1.

https://heinonline.org/HOL/LandingPage?handle=hein.journals/emint37&div=5&id=

&page=

 Hoffmann, S., Bradshaw, S., & Taylor, E. (2019). Networks and geopolitics: how

great power rivalries infected 5G. Osford Information Labs.

https://oxil.uk/publications/geopolitics-of-5g/Geopolitics_5G_Final.pdf

 Rühlig, T., & Björk, M. (2020). What to make of the Huawei debate? 5G network

security and technology dependency in Europe. UI Paper, 1, 2020.

 Schoff, J. L., & Ito, A. (2019). Competing with China on technology and

innovation. Carnegie Endowment for Pease.

 ten Oever, N. (2023). 5G and the notion of network ideology, or: The limitations of

sociotechnical imaginaries. Telecommunications Policy, 47(5), 102442.

https://doi.org/10.1016/j.telpol.2022.102442