China on Friday hit out at Canada for blocking telecoms giants Huawei and ZTE from Canadian 5G networks, describing the ban as "groundless" and based on spurious security risks.

Canada's move follows the United States and other key allies, and comes on the heels of a diplomatic row between Beijing and Ottawa over the detention of senior Huawei executive Meng Wanzhou on a US warrant, which has now been resolved.

"China is firmly opposed to this," Foreign Ministry spokesman Wang Wenbin told reporters of the 5G block, adding Beijing would "take all necessary measures" to protect Chinese companies.

"This move runs counter to market economy principles and free trade rules," he added.

Canadian Industry Minister Francois-Philippe Champagne made the announcement on Thursday, citing their "intention to prohibit the inclusion of Huawei and ZTE products and services in Canada's telecommunication systems."

The United States has warned of the security implications of giving Chinese tech companies access to telecommunications infrastructure that could be used for state espionage.

Both Huawei and Beijing have rejected the allegations, while Beijing warned of repercussions for nations placing restrictions on the telecoms equipment provider.

Wang on Friday accused the Canadian government of "seriously damaging the legitimate rights and interests of Chinese companies." (AFP)