Canada dismisses Chinese threats over potential 5G network ban for Huawei

China had warned of 'repercussions' should Canada bar Huawei from the country's 5G networks

Canada has dismissed threats from China promising "repercussions" should it ban Huawei from supplying communications hardware to the country's 5G networks.

It comes after China's ambassador in Canada urged "Canadian officials" and "relevant authorities and bodies" to "make a wise decision on this issue".

Ambassador Lu Shaye continued: "If the Canadian government does ban Huawei from participating in the 5G network, then as for what kind of repercussion there will be, I'm not sure, but I believe there will be repercussions."

The warning was conveyed to reporters during a press conference in Ottawa, Canada.

Huawei is increasingly losing ground in Western countries after the US authorities started urging close partners - partners with whom it routinely shares intelligence - not to allow Huawei hardware to be deployed in forthcoming 5G networks, citing security concerns.

The warnings have hit home, with authorities in Germany this week joining a growing list of countries considering a block on Huawei supplying 5G equipment to mobile operators.

Canada has also announced that it is evaluating the security threats connected with 5G networks. It hasn't reached a formal decision yet.

Lu's press conference is the newest development in the ongoing dispute between the two countries.

Tensions escalated last month when Canadian authorities arrested Huawei's chief financial officer, Meng Wanzhou, who is also the daughter of the company's founder. She faces extradition to the US over allegations that she helped the company to violate US sanctions against Iran.

During the conference, China's ambassador Mr Lu called her arrest an act of "back-stabbing" by a friend.

Canada claimed repeatedly that the incident was not politically motivated, but purely a matter of the rule of law as authorities were acting under international treaty obligations.

In response late today to the threats, Canada's Minister for Public Safety, Ralph Goodale, said that the country would not compromise on national security.

He told Reuters: "We understand that those sorts of comments will be made in the process, but we will make our judgment based on what is right for Canada and not be deterred from making the right decision.

"We are determined to stand our ground based on what is right for Canada ... this is a tough and turbulent world."

Goodale pointed out that similar threats had been made after Australia banned Huawei from supplying 5G equipment to Australian mobile networks late last year. Australia was closely followed by New Zealand.

Huawei is also reportedly under official investigation in the US over the alleged theft of trade secrets.