The Canadian government has ordered Chinese surveillance technology manufacturer Hikvision to cease all operations in Canada, citing national security concerns. The decision marks a sharp escalation in Canada's scrutiny of Chinese technology firms and follows years of mounting pressure from Western allies over human rights and data security issues tied to Chinese state-linked companies.
Industry Minister Mélanie Joly announced the move late Friday, stating that the government "has determined that Hikvision Canada Inc's continued operations in Canada would be injurious to Canada's national security." The order followed a multi-step national security review under the Investment Canada Act and includes a ban on government procurement and use of Hikvision products.
"The Government of Canada welcomes foreign investment - but will never compromise on Canada's national security," Joly said in a statement on X. She added that a review of existing federal properties is underway to ensure Hikvision systems are removed from use.
Hangzhou Hikvision Digital Technology Co., known globally as one of the largest manufacturers of video surveillance equipment, has already faced extensive sanctions from the United States. Washington placed Hikvision subsidiaries on a trade blacklist in 2023, citing their alleged involvement in high-tech surveillance used in China's Xinjiang region, where human rights organizations have documented widespread repression of Uyghurs and other Muslim minorities.
Although the Canadian government's announcement did not specifically reference Xinjiang or human rights violations, it aligns with a broader Western push to curb reliance on Chinese technology in sensitive infrastructure and defense-related applications.
Hikvision, in response, said it "strongly disagrees" with the Canadian decision, calling it "deeply concerning" and lacking in "procedural fairness and transparency."
"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," a Hikvision spokesperson told Reuters. The company urged the Canadian government to "base its actions on facts rather than prejudice."
Joly clarified that the order does not extend to Hikvision's operations outside of Canada but "strongly encouraged" Canadians to consider the implications of the government's decision when dealing with the company.
Last year, Canada began reviewing potential sanctions on several Chinese surveillance technology firms, including Hikvision, following advocacy group claims that their products facilitated repression in Xinjiang. The Wall Street Journal reported at the time that Canada was weighing punitive measures in alignment with actions taken by the U.S. and other Western countries.
Hikvision stated in 2023 that it had exited contracts in Xinjiang through five subsidiaries implicated by U.S. authorities. China's foreign ministry has repeatedly denied allegations of abuse in the region and has retaliated diplomatically and economically against companies cutting ties with Xinjiang-linked entities.
