OTTAWA — The Liberal government has directed a state-owned Chinese telecommunications firm to divest its stake in a Canadian subsidiary over national security concerns, prompting a court challenge of the order.
CMI Canada says it inadvertently neglected to inform the federal government of its presence as a new Canadian business until October of last year. A series of requests for information from federal officials soon followed.
In January, the government informed CMI Canada of a review on security grounds, saying the investment could result in the Canadian business being leveraged by the Chinese state "for non-commercial purposes, such as the compromise of critical infrastructure and foreign interference, to the detriment of Canada’s national security."
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