By Hook or by Crook:

Canada’s recent decision to ban surveillance technology firm Hikvision from federal contracts marks a significant step in our evolving approach to national security and foreign technology threats. The move, announced June 27 by Industry Minister Mélanie Joly, follows a multi-agency national security review and brings Canada into alignment with our Five Eyes partners, who have recently taken a firmer line with Chinese technology companies. 

The Hikvision ban comes on the heels of Canada’s 2022 decision to exclude Chinese telecoms giant Huawei from the development of its 5G networks. In doing so, Canada was following the lead of the United States and the United Kingdom, which imposed similar restrictions citing the national security vulnerabilities inherent in allowing Chinese firms access to critical digital and physical infrastructure. Notably, this shift only came about after years  of warnings from Canadian intelligence agencies about the risks posed by foreign technology companies.  

That action on these files has been comparatively slow is especially disappointing given evidence of broader Chinese state activities within Canada, including reported foreign interference, the presence of undeclared police stations, and cyber threats targeting Canadian institutions. Canada’s changing trade relationship with the United States is undoubtedly one of the catalysts for action, forcing Canada both to take proactive steps to ensure we adhere to enhanced security standards, while re-examining our sovereignty and vulnerabilities of foreign firms access to our critical infrastructure. 

Chinese technology has advanced rapidly over the past two decades. Once dismissed as low-quality, Chinese firms now lead globally in sectors such as telecommunications, surveillance systems, and electric vehicles. These technologies are not only increasingly sophisticated but also often significantly more affordable than their Western counterparts. This is enabled by extensive state subsidies, which allows Chinese companies to undercut competitors. Hikvision, has grown to become one of the world’s largest producers of surveillance equipment despite facing scrutiny over its links to the Chinese government and its role in the surveillance of ethnic minorities in China’s Xinjiang province. 

Obviously, there are broader geopolitical and economic issues at play. China is too big to ignore as a market for Canadian exports. The current Liberal government has indicated a desire for closer trade ties with China, a dynamic that is likely to gain momentum  given the current uncertain and unpredictable trade relationship with the United States.  

While American threats on trade may drive Canada to China, other aspects of the cross-border relationship will force Canada to stay in line with policies around foreign technology access and high-risk vendors deemed high-risk. Alignment with our Five Eyes partners is not just a matter of shared values—it is a practical necessity. Canada depends on deep intelligence-sharing arrangements. If partners ban high-risk vendors like Huawei and Hikvision from their critical infrastructure, Canada will continue to face pressure to do the same. Diverging from those policies will undermine trust and limit Canada’s access to sensitive intelligence, weakening our potential access to US markets and our broader security posture. 

The deteriorating U.S. / Canada relationship has been a wakeup call, economically and nationally. It has been disorienting to see years of friendship questioned and seemingly dismissed. However, U.S. threats have forced us reexamine and re-emphasized the importance of maintaining control over data and systems tied to national infrastructure and public safety.