Former Huawei subsidiary in talks with Canadian government to enter Canada

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Key Takeaways

  • Honor Device Co., Ltd., the former Huawei sub‑brand now owned by Shenzhen Zhixin, is seeking Canadian government approval to sell its smartphones in Canada.
  • The company plans to meet with Innovation, Science and Economic Development Canada (ISED) in mid‑June to clarify that it is separate from Huawei and to address lingering security concerns.
  • Honor emphasizes that it operates with “the highest integrity,” complies with international data‑privacy rules, and runs its own MagicOS UI while retaining full access to Google Play services.
  • Canada previously banned Huawei from its telecom networks in 2022, but recent diplomatic overtures—including a goal to boost China‑Canada trade and a low‑tariff EV deal—have created a more favourable environment for Chinese tech firms.
  • Honor’s leadership argues that economic ownership by a state‑owned municipal group does not equate to political control, and that any government data‑request would be subject to the same legal frameworks faced by companies worldwide.

Honor’s Push for Market Access in Canada
Honor Device Co., Ltd., the Chinese consumer‑device maker that once operated as a sub‑brand of Huawei, is actively lobbying the federal government to permit the sale of its smartphones in Canada. According to Mathew Palmer, a senior vice‑president at public‑affairs firm Weber Shandwick, Honor’s executives are arranging a mid‑June meeting with staff from Innovation, Science and Economic Development Canada (ISED) in Ottawa. The session is described as introductory, aiming to let Canadian officials understand who Honor is, who it is not, and to establish regulatory clarity for a fair market entry. While the exact date remains undecided, the visit signals Honor’s serious intent to re‑enter a North‑American market from which Huawei was barred.


Corporate Structure and Ownership Distinction
Founded in 2013 as a Huawei sub‑brand, Honor now produces smartphones, tablets, laptops, and wearables that are sold in over 100 markets across Europe, the Middle East, Africa, and the Asia‑Pacific region. After the United States banned Huawei and its affiliates in 2019 over security worries, Huawei transferred Honor to Shenzhen Zhixin New Information Technology Co., Ltd., a state‑owned municipal economic group based in Shenzhen. Palmer stresses that this change separates Honor’s economic ownership from any “strategic apparatus of the national government,” arguing that the two are not interlinked and that Honor should be judged on its own merits rather than as an extension of Beijing.


Canada’s Prior Stance on Huawei and Ongoing Concerns
Canada’s relationship with Huawei has been fraught. Following the lead of several allied nations, the Canadian government barred Huawei from participating in its 5G network build‑out in 2022 and ordered telecom carriers to remove existing Huawei radio equipment. The decision rested on allegations that Huawei’s gear could pose privacy and security risks—a claim Beijing has consistently denied. Honor’s effort to rebrand itself as an independent entity seeks to allay similar fears that might otherwise impede its devices from gaining approval for use on Canadian telecom networks.


Honor’s Commitment to Privacy and Compliance
In a 44‑page white paper released in 2025, Honor declared privacy a “fundamental right of users” and asserted that it “strictly complies with the legal and regulatory requirements for cross‑border transfer of personal data” in every jurisdiction where it operates. The company also highlighted that its devices run MagicOS, a proprietary user interface built atop Android, while retaining full access to the Google Play Store and Google Mobile Services. Palmer reiterated that Honor bears a responsibility to demonstrate the “highest integrity” in its data handling practices, especially as it courts a market that remains wary of foreign‑origin technology.


Addressing Potential Government Data Requests
When questioned about whether the Chinese government could compel Honor to surrender customer data, Palmer noted that firms in many countries routinely face lawful requests for information from state authorities. He cautioned against labeling Honor as an extension of the Chinese state, arguing that any such request would be subject to the same legal processes and safeguards that apply to multinational corporations worldwide. By framing the issue within a universal legal context, Honor aims to deflect accusations of covert state control and to reassure regulators that its operations remain transparent and accountable.


Shifting Sino‑Canadian Trade Dynamics
Honor’s renewed interest in the Canadian market coincides with a broader thaw in China‑Canada relations. Prime Minister Mark Carney has pursued a strategy of diversifying Canada’s trade partnerships, and in January the government set a target to increase exports to China by 50 % by 2030. As part of this push, Canada announced a low‑tariff arrangement that will permit 49,000 Chinese‑made electric vehicles into the country, reciprocated by reductions in Chinese levies on Canadian canola seed and other agricultural products. Honor’s team said it first considered Canadian expansion after hearing Carney’s speech at the World Economic Forum in Davos, where he emphasized Canada’s quest for strategic economic autonomy.


Diplomatic Outlook and Future Steps
Foreign Affairs Minister Anita Anand, speaking at a C.D. Howe Institute event in May, urged Canadians to view recent diplomatic visits—spanning China, India, Saudi Arabia, Turkey, and Mexico—as indicators of the country’s evolving economic orientation. She affirmed that her approach to foreign engagement involves raising concerns about human rights, interference, and international law while refusing to outright dismiss cooperation with any jurisdiction. Honor’s forthcoming discussions with ISED will likely be framed within this broader diplomatic milieu, seeking to balance security safeguards with the economic opportunities presented by a growing consumer‑device market in Canada. If successful, Honor could become the first major Chinese smartphone brand to secure a foothold in Canada since the Huawei ban, marking a notable shift in the nation’s technology‑import landscape.

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