Canada Halts Funding for Research Connected to Chinese Military and State Security Institutions

Just a few days after Prime Minister Justin Trudeau authorized the United States to shoot down an unidentified object over Canada, the federal government has announced that it will stop funding any research done with or connected to foreign military, national defense or state security entities, and encouraged universities and provinces to consider doing the same.

“Our government takes its responsibility to protect Canadian research very seriously. Canada’s advanced research ecosystem is at the forefront of global discovery, but it can also be an attractive target for foreign state actors that pose a risk to our national security. We have made great strides in protecting Canada’s research ecosystem, but with a constantly evolving threat environment, further action is needed,” the government said in a statement. 

In late January, The Globe and Mail reported that 50 Canadian universities had been involved in extensive research projects with the Chinese military from as far back as 2005. These include collaborations with China’s National University of Defence Technology (NUDT) on topics like quantum cryptography, photonics, and space science, which involved some Chinese military experts in missile performance and guidance systems, mobile robotics, and automated surveillance.

“This new action is one of many significant steps the Government of Canada is taking to protect our country, our institutions and our intellectual property,” the government wrote, adding that the new policy includes guidelines developed in consultation with the Government of Canada–Universities Working Group to support due diligence on potential risks to research security. A Research Security Centre will also be established to provide advice and guidance directly to research institutions.

Canada joins the US and other allies in taking a more aggressive approach against possible threats from China in recent months. In November, the government also began cracking down on foreign state investment in mining, particularly in critical minerals, also to protect national security.

Around the same time, the Royal Canadian Mounted Police (RCMP) announced that they are investigating Chinese ‘police service stations’ that have popped up in the Greater Toronto Area and 30 other countries. 

Information for this briefing was found via The Globe and Mail, Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.