The Canadian government's recent move ordering Chinese surveillance equipment manufacturer Hangzhou Hikvision Digital Technology Co to cease operations in the country over so-called national security concerns is not based on evidence, and it will jeopardize the stability of global industrial and supply chains, officials and experts said.
The decision will not only prove detrimental to international technological cooperation and advancement, but will also harm the interests of Canadian companies and consumers, they said, adding that it shows Canada is using political power to contain the rise of Chinese tech companies.
Expressing strong dissatisfaction with and firm opposition to the order, a spokesperson for the Chinese embassy in Canada said on Saturday that the move seriously undermines the legitimate rights and interests of Chinese enterprises and disrupts the normal economic and trade cooperation between China and Canada.
The Chinese government always encourages Chinese enterprises to conduct outbound foreign investment and cooperation in accordance with market principles and international rules and on the basis of compliance with local laws, the spokesperson said.
"We firmly oppose any wrongful practices of overstretching the concept of 'national security' and abusing state power to discriminate against and suppress Chinese enterprises," the spokesperson added.
China urges Canada to stop abusing the concept of "national security" and politicizing economic and trade issues, stop the unjustified suppression of Chinese enterprises, and provide a fair, just and nondiscriminatory environment for the normal operation of Chinese enterprises, according to the spokesperson.
"We will take all necessary measures to firmly safeguard the legitimate and lawful rights and interests of Chinese enterprises," the spokesperson added.
Zhou Mi, a researcher at the Chinese Academy of International Trade and Economic Cooperation, said the Canadian government's decision has no factual basis, lacks necessary explanation and transparency, and violates the principles of fair and orderly market competition.
The move will eventually backfire, as it hurts the interests of Canadian suppliers who have close business cooperation with Chinese tech companies such as Hikvision, Zhou said.
In a statement issued on Sunday, Hikvision, which has had a Canadian subsidiary since 2014, said the company "strongly" disagrees with the decision and views it with deep concern, as "we believe it lacks a factual basis, 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," the statement said.
The company noted that it has fully cooperated with Canadian authorities, "providing timely and comprehensive responses along with detailed documentation and proactive engagement to support their understanding".
"Despite these efforts, the Canadian government imposed its decision without presenting evidence or addressing the facts we provided," the company said. "We urge the Canadian government to base its actions on facts rather than prejudice, and to uphold a fair, transparent environment for all businesses and investors."
Zhu Keli, founding director of the China Institute of New Economy, said that the Canadian government is using political measures to suppress China's rise as a technological power, and is cracking down on Chinese companies operating in the country by generalizing the concept of "national security".
Hikvision is one of the world's largest manufacturers of video surveillance cameras and equipment, so its forced shutdown in the Canadian market will affect the operations of upstream and downstream enterprises of related industries, which in turn will impede technological innovation and advancement in the global security sector, he said.
The move goes against the basic principles of market economy and may have a negative impact on the international science and technology innovation ecosystem, Zhu added.
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