Hikvision Canada Fights Order to Shut Down Operations Over National Security Concerns
Hikvision Canada Inc. is contesting a Government of Canada order to shut down its operations on Canada's national day, following a national security review. The order, unusual for its timing several years after Hikvision's Canadian launch, prohibits the sale or transfer of its products and warns Canadians to stop using them.
The order, issued under the Investment Canada Act, requires Hikvision to wind up its Canadian business and cease all operations within 120 days. It follows a series of national security decisions, including divestiture orders in the critical minerals sector and shutdown orders for other tech companies. The review considered factors such as defense capabilities, technology transfer, critical minerals supply chain, and critical infrastructure impacts.
Hikvision has asked a judge to set aside the order, alleging it is unreasonable and procedurally unfair. It has also sought a stay of the order, citing the impact on its 66 Canadian employees. The Minister of Innovation, Science and Industry will oversee Hikvision Canada Inc. if the court rules in Hikvision's favor. Previous judicial challenges to such orders have not been successful.
The order signals an enhanced willingness of the Canadian government to scrutinize existing businesses in Canada from a national security perspective. Hikvision Canada Inc. continues to challenge the order, with the outcome pending in court.
