TORONTO: The Canadian authorities on Thursday tabled a invoice to replace safety measures for international direct investments (FDI) into the nation, even because it cancelled a contract with a telecommunications firm over ties with China.

Amendments to the Investment Canada Act (ICA) have been moved in parliament, probably the most vital overview in over a decade meant to deal with “evolving national security concerns,” in line with a launch from Innovation, Science and Economic Development Canada.

While the announcement didn’t particularly point out considerations over Chinese government-linked corporations collaborating in delicate Canadian sectors, it got here simply because the federal police, the Royal Canadian Mounted Police (RCMP), suspended a contract for radio frequency (RF) gear over the corporate’s hyperlinks to Beijing.

The transfer adopted a Radio-Canada report that the gear was equipped by Sinclair Technologies, which is predicated in Ontario, a part of Norsat International, which is owned by Chinese telecommunications agency Hytera. About 10% of Hytera is owned by the Chinese authorities via an funding fund.

The contract was criticised by Canadian Prime Minister Justin Trudeau a day earlier, when he informed media the federal government needed to deal with “finding out first of all what needs to be done to ensure that our communications technology is secure, but also make sure we’re figuring out how this could continue to happen and make sure that Canada is not signing contracts with the lowest bidder that then turn around and leave us exposed to security flaws”.

The three-year contract, awarded in 2021, was value CA$ 549,637.

On Thursday, public security minister Marco Mendicino informed reporters that because the contract was suspended, the RCMP was “in the process of both reviewing the manner in which this contract was awarded, as well as mitigating against any risks”.

Thursday’s amendments to the legislation governing nationwide safety critiques of procurement are the primary such modifications since 2009.

“While our government continues to welcome foreign direct investment, we need to be vigilant and protect Canadian interests,” François-Philippe Champagne, minister of innovation, science and business, stated within the assertion.

Foreign affairs minister Mélanie Joly informed reporters, “I said in the Indo-Pacific Strategy that we need to put the national lens on our contracts and our decision-making. This is the position of the Government going forward.” That Strategy, launched final month, underscored the problem China poses for Canada.

According to Radio-Canada, the US Federal Communications Commission (FCC) blacklisted Hytera in 2021, months earlier than Canada signed the RF contract. The FCC described it as a Chinese firm that posed “an unacceptable risk to the national security of the United States or the security and safety of United States persons.”

Separately, Canada’s division of nationwide defence has began trying into one other contract for 12 antennas for 2 naval bases given to Sinclair Technologies.