Feds order Chinese tech firm to close Canadian operations over national security

In this Tuesday, Oct. 23, 2018, file photo, visitors pass by a booth for state-owned surveillance equipment manufacturer Hikvision at the Security China 2018 expo in Beijing, China. (AP Photo/Ng Han Guan, File)

The federal government has ordered a Chinese maker of surveillance camera systems to shutter its Canadian business and leave the country over national security concerns.

Industry Minister Melanie Joly said in a post on X late Friday that the orders issued to Hikvision Canada Inc. are the result of a national security review under the Investment Canada Act.

As part of the review, Joly said the government looked at information and evidence provided by Canada’s security and intelligence community.

The government ultimately determined allowing the company to keep operating in Canada would be harmful for the country’s national security, she said.

Hikvision, whose formal name is Hangzhou Hikvision Digital Technology Co. Ltd., describes itself as the world’s largest manufacturer of surveillance equipment. It’s had a Canadian subsidiary since 2014.

In the U.S., Australia and the U.K., the business and its subsidiaries have faced a battery of sanctions. Some stem from allegations that the company supplied the Chinese with surveillance cameras used in the Xinjiang region, where the Uyghur population has faced human rights abuses.

As a result, Best Buy, Home Depot, and Lowes all reportedly stopped selling Hikvision products.

It’s unclear what specific concerns sparked Canada’s review of Hikvision. The Investment Canada Act allows the government to probe any foreign investment with potential to harm national security and order any company found posing a risk to the country to depart.

Hikvision said it “strongly” disagrees with Joly’s decision to order it out of Canada and views the move “with deep concern.”

“We believe it lacks a factual basis, procedural fairness, and transparency,” Hikvision said in a statement.

“Instead of evaluating our technology on its cybersecurity merits, the decision appears to be driven by the parent company’s country of origin, reflecting broader geopolitical tensions and an unjustified bias against Chinese companies.”

Hikvision said it fully cooperated with all government parties, providing them with timely and comprehensive responses along with detailed documentation.

“Despite these efforts, the government imposed its decision without presenting evidence or addressing the facts we provided,” Hikvision said in its statement.

“We urge the Canadian government to base its actions on facts rather than prejudice, and to uphold a fair, transparent environment for all businesses and investors.”

On top of ordering Hikvision Canada to shut down, Joly said she is also moving to ensure the federal government, its departments, agencies and Crown corporations do not use or purchase equipment from the company.

She said the government is also conducting a review of its properties to ensure legacy Hikvision products are not used going forward.

However, she stopped short of urging them to stop using Hikvision technology but said, “I strongly urge Canadians to take note of this decision and make their own decisions accordingly.”

By Tara Deschamps.