It moved Canada effectively to ban company Huawei fifth – generation networks (5G), resulting in a delay in making a decision for a period sufficient to compel telecommunications companies to the exclusion of the Chinese industry company equipment.
Canada is the only member of the Five Eyes intelligence sharing network that has not formally banned Huawei from 5G networks, but it has done so effectively.
The strategy allows Canada to stay on the right side of both China and the United States while competing for Huawei.
Canada and its Five Eyes network allies – the United Kingdom, New Zealand and Australia – are under pressure from the United States to ban Huawei for security reasons.
Canada is considering rolling out the company's next-generation equipment for two years, ignoring growing signs of the industry's impatience.
In June, Bell Canada and its competitor Telus Corp partnered with Swedish company Ericsson and Finnish Nokia to build 5G networks, with Huawei abandoning the project despite the use of the Chinese company's 4G equipment.
A source directly familiar with the approach taken by the liberal government headed by Justin Trudeau, Canadian Prime Minister, said: The lack of a solution will ultimately lead to the settlement of all problems.
Rogers Communications announced in 2018 that it was using Ericsson's 5G equipment.
Earlier this month, the Trump administration said it would tighten US restrictions on Huawei, aiming to crack down on its access to commercially available chips.
The operators in Canada feel the US restrictions mean they have no choice but to marginalize Huawei in 5G networks, at least for now.
In 2018, both Australia and New Zealand banned service providers from using Huawei's 5G equipment.
It is certain that Canada will make a decision one day, but a source directly familiar with the government's thinking stressed that Ottawa has not yet reached a conclusive conclusion and will not rush, adding that officials take their time to avoid Britain's impasse.
The British government said last month that it would ban Huawei from 5G networks by ordering companies to remove the equipment by 2027.
The office of Canadian Innovation Minister Navdeep Bains – officially tasked with making a decision on Huawei and 5G – said in a statement: It could not comment on a specific company, and did not say when the announcement would be made.
Huawei said in a statement that it believed Ottawa's words when it said: It takes time to make an informed decision.