Chinese-controlled company fights Ottawa's order to divest assets on security grounds
The Liberal government has directed a state-owned Chinese telecommunications firm to divest its stake in a Canadian subsidiary over national security concerns, prompting a court challenge of the order.
China Mobile International Canada is asking the Federal Court to set aside the recent decision, saying the government has no grounds to believe the company would compromise security or engage in espionage on behalf of Beijing.
CMI Canada says the Trudeau government was motivated, at least in part, by "the current political socioeconomic climate and the general biases against Chinese state-owned companies."
The case unfolds amid high tensions between Ottawa and Beijing over China's prolonged detention of Canadian citizens Michael Kovrig and Michael Spavor for alleged spying.
China's actions against Spavor and Kovrig are widely seen in the West as retaliation for the late 2018 arrest by Canadian authorities of Meng Wanzhou, an executive with Chinese firm Huawei Technologies, so she can be extradited to the U.S. to face fraud charges.
CMI Canada's application filed this week in Federal Court reveals details of an investment screening case that has quietly unfolded outside the public eye over the last year.
The company, established in 2015, provides mobile communication services, including prepaid call plans, but does not itself own or operate any telecommunications network facilities. Instead, it has partnered with Telus Communications Inc. for provision of wireless services through the Telus network.
CMI Canada says it inadvertently neglected to inform the federal government of its presence as a new Canadian business until October of last year. A series of requests for information from federal officials soon followed.
The Investment Canada Act and the National Security Review of Investments Regulations allow the federal government to scrutinize an investment in Canada by a foreign enterprise.
In January, the government informed CMI Canada of a review on security grounds, saying the investment could result in the Canadian business being leveraged by the Chinese state "for non-commercial purposes, such as the compromise of critical infrastructure and foreign interference, to the detriment of Canada's national security."
Following additional information exchanges, the government issued an Aug. 9 order directing China Mobile to either divest itself entirely of or wind up the Canadian business within 90 days.
CMI Canada contends the conclusion was "tantamount to speculation about what the Canadian business may do," such as using its supposed access to sensitive information for "military applications or espionage."
The company argues Ottawa could not reasonably have concluded, based on the information available, that the investment would be harmful to Canada's national security.
It says the company does not own nor operate any transmission facilities in Canada, lacks privileged or direct access to any critical infrastructure, and does not have access to any sensitive telecommunications data or personal information, other than basic contact details.
CMI Canada is asking the court to quash the federal decision or, in the alternative, to send the matter back to the government for reconsideration. It also wants the order put on hold pending outcome of the case and any appeals.
If the decision is not stayed, the company will be forced to leave "the Canadian landscape entirely. This would require the termination of its client base and operations," the application says.
The federal government has not yet filed a response and no date has been set for a hearing.
This report by The Canadian Press was first published Sept. 11, 2021.
IN DEPTH
Jagmeet Singh pulls NDP out of deal with Trudeau Liberals, takes aim at Poilievre Conservatives
NDP Leader Jagmeet Singh has pulled his party out of the supply-and-confidence agreement that had been helping keep Prime Minister Justin Trudeau's minority Liberals in power.
'Not the result we wanted': Trudeau responds after surprise Conservative byelection win in Liberal stronghold
Conservative candidate Don Stewart winning the closely-watched Toronto-St. Paul's federal byelection, and delivering a stunning upset to Justin Trudeau's candidate Leslie Church in the long-time Liberal riding, has sent political shockwaves through both parties.
'We will go with the majority': Liberals slammed by opposition over proposal to delay next election
The federal Liberal government learned Friday it might have to retreat on a proposal within its electoral reform legislation to delay the next vote by one week, after all opposition parties came out to say they can't support it.
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government鈥檚 three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party鈥檚 popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn鈥檛 be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
Canadians across the country mark Remembrance Day
Canadians gathered Monday in cities and towns across the country to honour the sacrifice of men and women in uniform who gave their lives in service of the country's values and principles.
Canada cancels automatic 10-year multiple-entry visas, tightens rules
Canada has announced changes to their visitor visa policies, effectively ending the automatic issuance of 10-year multiple-entry visas, according to new rules outlined by Immigration, Refugees and Citizenship Canada.
Trump names Stephen Miller to be deputy chief of policy in new administration
U.S. President-elect Donald Trump is naming longtime adviser Stephen Miller, an immigration hard-liner, to be the deputy chief of policy in his new administration.
Mattel says it 'deeply' regrets misprint on 'Wicked' dolls packaging that links to porn site
Toy giant Mattel says it 'deeply' regrets an error on the packaging of its 'Wicked' movie-themed dolls, which mistakenly links toy buyers to a pornographic website.
Alien-like signal from 2023 has been decoded. The next step is to figure out what it means
If Earth's astronomical observatories were to pick up a signal from outer space, it would need an all-hands-on-deck effort to decipher the extraterrestrial message. A father-daughter team of citizen scientists recently deciphered the message. Its meaning, however, remains a mystery.
Twin port shutdowns risk more damage to Canadian economy: business groups
Business groups are raising concerns about the broad effects of another round of labour disruptions in the transport sector as Canada faces shutdowns at its two biggest ports.
A team of tornado experts is heading to Fergus, Ont. after a storm ripped through the area Sunday night.
Why brain aging can vary dramatically between people
Researchers are uncovering deeper insights into how the human brain ages and what factors may be tied to healthier cognitive aging, including exercising, avoiding tobacco, speaking a second language or even playing a musical instrument.
Bleeding and in pain, a woman endured a harrowing wait for miscarriage care due to Georgia's restrictive abortion law
Since the U.S. Supreme Court鈥檚 2022 Dobbs decision eliminated the federal right to abortion, miscarriage management has become trickier and in some cases, deadlier.
Local Spotlight
Should Toronto tear up its bike lanes to improve traffic flow? Critics say it's not so simple
A congestion crisis, a traffic nightmare, or unrelenting gridlock -- whatever you call it, most agree that Toronto has a congestion problem. To alleviate some of the gridlock, the Ontario government has announced it plans to remove bike lanes from three major roadways.
For the second year in a row, the 鈥楪ift-a-Family鈥 campaign is hoping to make the holidays happier for children and families in need throughout Barrie.
Some of the most prolific photographers behind CTV Skywatch Pics of the Day use the medium for fun, therapy, and connection.
A young family from Codroy Valley, N.L., is happy to be on land and resting with their newborn daughter, Miley, after an overwhelming, yet exciting experience at sea.
As Connor Nijsse prepared to remove some old drywall during his garage renovation, he feared the worst.
A group of women in Chester, N.S., has been busy on the weekends making quilts 鈥 not for themselves, but for those in need.
A Vancouver artist whose streetside singing led to a chance encounter with one of the world's biggest musicians is encouraging aspiring performers to try their hand at busking.
Ten-thousand hand-knit poppies were taken from the Sanctuary Arts Centre and displayed on the fence surrounding the Dartmouth Cenotaph on Monday.
A Vancouver man is saying goodbye to his nine-to-five and embarking on a road trip from the Canadian Arctic to Antarctica.