Challenging Government's Order Regarding National Security under the Investment Canada Act by Hikvision
In a significant move, the Canadian federal government ordered Hikvision to shut down its operations in Canada in June 2025, following a national security review under the Investment Canada Act (ICA). The decision was based on concerns raised by Canada’s security and intelligence community about national security risks associated with Hikvision, a Chinese state-linked surveillance equipment manufacturer.
Timeline and Key Events
- June 27, 2025: The federal government issued a directive ordering Hikvision to close its Canadian business due to national security concerns [1][2].
- Shortly afterward, Industry Minister Mélanie Joly stated the decision was informed by classified information and evidence from Canadian security agencies [1][2].
- Hikvision challenged the order through a court filing, arguing the review process was procedurally unfair, citing abrupt conclusions by the government and lack of opportunity to provide additional information [1].
- Hikvision sought a judicial review and a stay on the shutdown order while the court considers their challenge [2].
Factors Influencing the Decision
National Security Concerns
The Canadian government evaluated information from intelligence and security communities that led to the conclusion Hikvision’s presence posed risks to national security.
Procedural Issues Raised by Hikvision
Hikvision contended the review was unfair, lacking proper communication on deadlines and disregarding additional data they wanted to submit [1].
International Context
Similar bans and sanctions from allied countries due to Hikvision’s alleged involvement in surveillance of Uyghurs and use in Xinjiang internment camps contributed to scrutiny [3].
Legal Framework
The review was conducted under the ICA, which allows the government to intervene in foreign investments if they pose national security threats [2].
Implications for Businesses
The Hikvision national security review and shutdown order serve as a reminder to prospective foreign investors in Canada that the ICA regime, including national security review provisions, have serious consequences on new and ongoing businesses. Non-Canadian owners of existing businesses with a presence in Canada should consult with regulatory counsel before commencing any new operations or business lines in Canada to avoid similar outcomes.
Ongoing Legal Challenges
Hikvision has filed an application for judicial review, seeking to set aside the Order on grounds of unreasonability, improper purposes, broadness, disproportionality, procedural unfairness, and lack of engagement on national security concerns. The application and stay motion are ongoing and are being closely monitored.
Precedents and Similar Cases
The Order closely follows the trajectory of the national security review of China Mobile International (Canada) Inc. in August 2021, after which CMI was ordered to shut down or divest its Canadian operations because of national security concerns, and CMI had been operating in Canada for years before the national security review.
The decision follows a series of decisions under the national security provisions of the ICA, including three divestiture orders in 2022 in the critical minerals sector, and orders to wind-up TikTok Technology Canada Inc., Bluevec Technologies, and Pegauni Technology in 2024.
- The authors would like to thank Ola Mirzoeva, a summer student, for her contribution to preparing this legal update.
[1] Government of Canada (2025). Order of Governor-in-Council 2025-0541. Available at: https://ised-isde.canada.ca/site/investment-canada-act/en/national-security-decisions
[2] Government of Canada (2025). Order directing Hikvision to wind up its Canadian business. Available at: https://www.ic.gc.ca/eic/site/062.nsf/eng/00101.html
[3] CBC News (2021). Hikvision, a Chinese surveillance company, faces ban in Canada over national security concerns. Available at: https://www.cbc.ca/news/technology/hikvision-china-surveillance-canada-1.6006648
- The ongoing legal challenge by Hikvision, a Chinese surveillance equipment manufacturer, against the Canadian government's order to shut down its operations, raises questions about the impact of crime-and-justice concerns on general-news and politics.
- The Canadian federal government's decision to bar Hikvision, a Chinese state-linked surveillance company, from operating in Canada due to national security risks, illustrates the extent to which politics can be influenced by international context and general-news events.
