The Canadian government has banned Chinese technology company Hikvision from continuing its business operations and ordered the company to withdraw completely from the Canadian market. Ottawa cited serious security concerns as the reason for its decision. With this move, Canada is tightening its stance toward Chinese surveillance technology providers – and going further than other Western industrialized countries.

The decision, which was made based on a national security review under the Investment Canada Act, requires Hikvision Canada Inc. to cease all business operations and close its office. In addition, the government is immediately prohibiting all government agencies from purchasing the company’s products. Existing installations are to be systematically reviewed and dismantled if necessary.

Focus on national security interests

“Our top priority is to protect Canadians and critical infrastructure,” said Industry Minister Mélanie Joly when announcing the measure. After careful review, she said, it had been concluded that Hikvision’s continued presence in Canada posed a threat to national security. The minister did not provide any specific details on the threat analysis.

With the exclusion of Hikvision, Canada is going beyond existing restrictions imposed by other countries. Although the United States has also imposed sanctions on the company since 2019, these do not include such a comprehensive market ban.

Hikvision criticizes geopolitically motivated decision

Hikvision Canada strongly rejected the allegations in a statement, calling it a “politically motivated” decision that was not based on verifiable security concerns. “This measure lacks any factual basis and fair process,” the statement said. The company emphasizes that its products comply with international security standards and do not pose a threat to users. From Hikvision’s perspective, the decision is an expression of a general bias against Chinese companies in the West.

Beijing speaks of “serious interference”

The Chinese embassy in Ottawa also strongly condemned the move. A spokesperson said that the Canadian government’s actions not only undermine the interests of Chinese companies, but also the basis of bilateral economic relations. Canada is being called upon to reverse its decision.

International context: Between cybersecurity and human rights

Hikvision is one of the world’s largest manufacturers of video surveillance systems. The company has been under international scrutiny for years – not only because of potential cyber risks, but also because of alleged involvement in human rights violations in the Chinese region of Xinjiang, particularly in connection with the surveillance of Uyghurs.

In the US, the company is on the Commerce Department’s so-called Entity List. The listing not only makes it harder to get US tech, but also limits business with US partners.

A signal to other markets?

With the ban now in place, Canada is sending a clear signal. Observers see the measure as a possible precedent for how Western democracies deal with providers of sensitive surveillance technology from authoritarian states. At the same time, the case highlights the increasing interdependence of economic policy, technology, and geopolitics—an area of tension that is becoming a difficult business risk to calculate for companies like Hikvision.

It remains to be seen whether and to what extent other countries will follow Canada’s example. However, one thing is clear: Ottawa’s decision exacerbates the technological conflict between the West and China – and presents multinational technology companies with new challenges in an increasingly fragmented global market.