Canada Orders Hikvision to Cease Operations, Cites National Security Concerns

The Canadian government has enacted broad restrictions against Hikvision, mandating the company’s exit from Canada and banning its products from federal procurement. The move marks the most extensive action to date by any Western government against the China-based firm, according to IPVM.com.

The decision follows a national security review under the Investment Canada Act, Canada’s legislation for overseeing foreign investments, and was made in consultation with the country’s security and intelligence agencies.

On June 28, Industry Minister Mélanie Joly announced that the government had concluded Hikvision Canada’s continued presence in the country posed a threat to national security. As a result, the company must shut down its operations and exit the Canadian market.

Her statement omitted any mention of China and did not elaborate on how Hikvision’s presence would endanger national security.

U.S. sanctions and bans

The U.S. government has taken a series of escalating actions against Hikvision over the past several years, citing national security concerns and the company’s alleged involvement in human rights abuses. In 2019, the U.S. Commerce Department added Hikvision to its Entity List, restricting its access to American technology, following allegations that the company’s surveillance products were used to facilitate the repression of Uyghur Muslims and other ethnic minorities in China’s Xinjiang region.

That same year, the National Defense Authorization Act (NDAA) barred federal agencies and contractors from procuring or using Hikvision equipment. The Federal Communications Commission (FCC) later labeled Hikvision, among other China-based manufacturers, a national security threat and, under the Secure Equipment Act of 2021, began blocking new product authorizations.

Hikvision, China push back against Canadian ban

In addition to Canada’s shutdown order, all federal departments, agencies and Crown corporations — organizations that are structured like private companies but are directly and wholly owned by the government — are prohibited from procuring or using Hikvision equipment going forward. The government is also auditing federal facilities to locate and remove existing Hikvision devices and has issued a public advisory urging Canadians and Canadian organizations to take the national security determination into account when evaluating the use of Hikvision products.

Specific findings from the government’s security review have not been made public.

Hikvision Canada responded to the order in a statement on its LinkedIn page, calling the government’s allegations “unfounded” and saying the decision “lacks a factual basis, procedural fairness, and transparency.” The company said it had cooperated fully during the review process and expressed concern that the decision was motivated by geopolitical bias rather than an objective assessment of its technology.

China’s commerce ministry on Monday called on Canada to reverse its decision, criticizing the order for Hikvision to halt operations as a wrongful action driven by national security claims. In a statement posted on its website, the Chinese ministry said it would take appropriate measures to protect the lawful rights and interests of Chinese companies.

“This not only undermines the legitimate rights and interests of Chinese companies and affects the confidence of companies from both countries in cooperation, but also disrupts and damages the normal economic and trade cooperation between China and Canada,” the statement read.

IPVM reports that this comprehensive action surpasses even U.S. measures against the company, which began restricting Hikvision’s access to federal contracts and technology in the late 2010s. In 2019, Hikvision split its North American business unit between Canada and the United States — a move widely seen at the time as a strategy to buffer its Canadian operations from U.S. sanctions.

While the new directive does not explicitly bar private citizens from purchasing Hikvision products, the loss of a Canadian sales and support infrastructure will likely deter most buyers. IPVM suggests that sales could continue among more price-sensitive customers, as has been the case in the U.S., but being labeled a national security risk is expected to significantly erode trust and demand.

Hikvision is purported to be the world’s largest manufacturer of video surveillance equipment. Although the company’s U.S. operations remain active, export controls and procurement restrictions to equipment blacklisting have significantly eroded Hikvision’s presence among U.S. government and enterprise customers.

SecurityInfoWatch will continue to monitor developments as more information becomes available.