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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.

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Lexpert contributor Julius Melnitzer reports at

Follow Lexpert on Twitter: @Lexpert

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