Brief Summary
This video discusses the increasing concerns and actions taken by the US and Canada to counter potential threats from Chinese companies and influence in key sectors. It highlights instances of decoupling in technology, restrictions on investments, and measures to safeguard national security.
- US restricts Chinese engineers in military projects and blacklists Chinese companies.
- Canada bans Chinese companies like Hikvision and Huawei, restricts investments in critical minerals, and increases scrutiny of research collaborations.
- Both countries are concerned about data privacy, security risks, and the potential for Chinese infiltration in sensitive areas.
US Defence Department Review of Cloud Computing Contracts
In July 2025, the US Secretary of Defence ordered a review of the Pentagon's cloud computing contracts and demanded that Microsoft cease using Chinese engineers for US military projects within 24 hours. This decision followed a ProPublica report revealing that Microsoft employed engineers based in China to develop cloud systems for the US military, raising concerns about potential leaks of military secrets. Senator Tom Cotton urged the review and requested a list of contractors using Chinese employees, as well as details on the training of digital sentinels. Microsoft responded by stating that Chinese engineering teams would no longer provide technical support for Pentagon services.
US Concerns over Chinese Military Civil Fusion
The US government is wary of China's military civil fusion, which applies civilian technologies to the military, driving technological development. The US Department of Defence has placed several Chinese companies, including Tencent, Sensetime and CL, on its Chinese military companies list, banning business with them starting in June 2026. These companies are accused of providing technological support to China's military in areas like AI and battery technology, posing a national security threat. The US has been using entities lists, executive orders, and diplomatic measures to restrict Chinese companies like Huawei, TikTok, Hikvision, and Tencent, based on concerns about national security, data privacy, and human rights.
Canada's Response to Chinese Influence
Canada has also faced risks from China's influence in politics, economy, and technology, particularly in telecommunications, minerals, and data. The US has urged Canada to remain vigilant on national security issues involving China, leading Canada to expel several Chinese companies. In June 2025, British Columbia's BC Ferries selected China Merchants Industry Wayhigh Shipyard to build new vessels, sparking concerns about national security risks due to the shipyard's ties to the Chinese government. Federal Transport Minister Christia Freeland expressed concern about the deal, highlighting cyber security threats.
Canada Bans Hikvision
Ottawa decided to shut down the Canadian operations of the Chinese surveillance camera company Hikvision, citing national security concerns. Minister Melanie Jolie announced that the government had invoked the Investment Canada Act, demanding that Hikvision's Canadian subsidiary cease operations within 120 days and prohibiting government agencies from purchasing its products. Hikvision denied the accusations and filed for judicial review. The US Department of Defence listed Hikvision as a company with ties to the Chinese military as early as 2020, and in 2022, the US Federal Communications Commission banned the import and sale of Hikvision equipment.
Canada Restricts TikTok
In November 2024, the Canadian government ordered TikTok to shut down its office in Canada, based on a multi-stage national security review. Minister Franis Phipe Champagne clarified that the decision was based on intelligence and evidence collected during the review. The Canadian government had previously banned the use of TikTok on government devices in 2023, citing risks to privacy and security. While the government does not prohibit the general public from using TikTok, it urges users to exercise caution, warning that personal information could be accessed by foreign entities.
Canada Bans Huawei and ZTE
Canada banned Chinese telecom companies Huawei and ZTE from participating in Canada's 5G wireless network infrastructure in May 2022, citing serious concerns that both companies could follow directives from the Chinese Communist Party. This decision aligns Canada with the Five Eyes partners, who have gradually banned Huawei from their 5G network infrastructure since 2019. The US had warned that it might halt intelligence sharing with allies who allowed Huawei to participate in critical infrastructure. Existing Huawei and ZTE equipment must be removed from the 5G network by June 28th, 2024, and 4G network equipment by December 31st, 2027.
Divestment from Critical Minerals
In November 2022, the Canadian federal government ordered three Chinese companies to sell their stake in key mining companies in Canada, citing national security risks. These companies were involved in the exploration and development of minerals like lithium. In 2020, China Shandong Gold Mining was blocked from acquiring the Canadian gold mining company T-Mac Resources, Inc. Canada released its critical mineral strategy in 2022, restricting foreign state-owned enterprises from participating in sectors involving critical minerals like lithium.
Broader Restrictions and Scrutiny
Canada's restrictions on Chinese investment are not limited to critical minerals; in 2018, the government blocked the sale of Canadian construction company Acon Group, Inc. to a Chinese state-owned construction firm. A report from the Canadian Parliament highlighted that national security risks related to foreign investments in Canada often involved China, noting that Chinese companies often collaborate with CCP military and intelligence agencies. Canada has also terminated funding for specific research projects involving researchers connected to foreign military, defense, or intelligence agencies that pose a threat to Canada's national security.
