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ARTICLE · 27 OCTOBER 2021

China Mobile Case Raises National Security Hang-up

McMillan LLP
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On August 6, 2021, the Governor in Council issued an order under the Investment Canada Act (ICA) requiring a Chinese state-owned telecom company to either divest or wind up the operations of its Canadian subsidiary within 90 days (the "Order").

CanadaGovernment, Public Sector
Joshua Krane
Joshua Krane
Stephen Wortley
Stephen Wortley
Connor Campbell
Connor Campbell
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On August 6, 2021, the Governor in Council issued an order under the Investment Canada Act (ICA) requiring a Chinese state-owned telecom company to either divest or wind up the operations of its Canadian subsidiary within 90 days (the "Order"). This followed from a national security review that began in early 2021. On September 7, 2021, the company filed an application for judicial review challenging the Order.

Key Takeaways

This is the second litigated challenge of a national security review under the ICA. While the Canadian Government conducts national security reviews for around 1% of foreign investment transactions per year, the number and percentage of interventions is increasing. This case raises three important points for businesses to consider:

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