Skip to main content

The Globe and Mail

Lexpert: Feds agree to security review for foreign businessman

The federal government has consented to the Federal Court's setting aside of a Cabinet order, requiring a Chinese investor to divest control of a Canadian business for national security reasons.

The decision will have significant consequences for the future of foreign investment review in Canada. Since the national security process was introduced in 2009, there have been no successful judicial reviews of the eight national security reviews that have occurred.

Legal observers suggest that the current Liberal government will have a different way of doing business from its predecessor. The Investment Canada Act may become less opaque, says one; the government has promised new guidelines for foreign investors, may be more committed to transparency and interested in resetting Canada's relationship with China.

Story continues below advertisement

Lexpert contributor Julius Melnitzer reports at www.lexpert.ca.

Follow Lexpert on Twitter: @Lexpert

Report an error
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at privacy@globeandmail.com.