National Security Review of Investments Modernization Act

An Act to amend the Investment Canada Act

This bill is from the 44th Parliament, 1st session, which ended in January 2025.

Sponsor

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.

This enactment amends the Investment Canada Act to, among other things,
(a) require notice of certain investments to be given prior to their implementation;
(b) authorize the Minister of Industry, after consultation with the Minister of Public Safety and Emergency Preparedness, to impose interim conditions in respect of investments in order to prevent injury to national security that could arise during the review;
(c) require, in certain cases, the Minister of Industry to make an order for the further review of investments under Part IV.1;
(d) allow written undertakings to be submitted to the Minister of Industry to address risks of injury to national security and allow that Minister, with the concurrence of the Minister of Public Safety and Emergency Preparedness, to complete consideration of an investment because of the undertakings;
(e) introduce rules for the protection of information in the course of judicial review proceedings in relation to decisions and orders under Part IV.1;
(f) authorize the Minister of Industry to disclose information that is otherwise privileged under the Act to foreign states for the purposes of foreign investment reviews;
(g) establish a penalty not exceeding the greater of $500,000 and any prescribed amount, for failure to give notice of, or file applications with respect to, certain investments; and
(h) increase the penalty for other contraventions of the Act or the regulations to the greater of $25,000 and any prescribed amount for each day of the contravention.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-34s:

C-34 (2021) Law Appropriation Act No. 3, 2021-22
C-34 (2016) An Act to amend the Public Service Labour Relations Act and other Acts
C-34 (2014) Law Tla'amin Final Agreement Act
C-34 (2012) Law Appropriation Act No. 4 2011-12

Votes

Nov. 20, 2023 Passed 3rd reading and adoption of Bill C-34, An Act to amend the Investment Canada Act
Nov. 7, 2023 Passed Concurrence at report stage of Bill C-34, An Act to amend the Investment Canada Act
Nov. 7, 2023 Failed Bill C-34, An Act to amend the Investment Canada Act (report stage amendment) (Motion 3)
Nov. 7, 2023 Passed Bill C-34, An Act to amend the Investment Canada Act (report stage amendment) (Motion 1)
Nov. 6, 2023 Passed Time allocation for Bill C-34, An Act to amend the Investment Canada Act
April 17, 2023 Passed 2nd reading of Bill C-34, An Act to amend the Investment Canada Act

Debate Summary

line drawing of robot

This is a computer-generated summary of the speeches below. Usually it’s accurate, but every now and then it’ll contain inaccuracies or total fabrications.

Bill C-34 aims to modernize the Investment Canada Act by strengthening the government's ability to review foreign investments that may pose a threat to national security or economic interests. The bill introduces measures such as pre-implementation filing requirements, ministerial authority to impose interim conditions on investments, harsher penalties for non-compliance, and improved information sharing with international partners. While the bill has received broad support, concerns have been raised regarding the scope of the reviews and whether the bill goes far enough to protect Canadian assets, intellectual property, and economic sovereignty from hostile foreign actors.

Liberal

  • Modernizing Investment Canada Act: The Liberals support modernizing the Investment Canada Act to address changes such as technological advancements and foreign interference, especially concerning ownership of Canadian companies and assets. The aim is to protect Canadian industries and ensure investments align with Canada's best interests.
  • Protecting national security: The legislation is intended to allow rapid government intervention if foreign investment harms Canada's national security, adapting to the speed of innovation and addressing geopolitical risks. It aims to prevent hostile actors from exploiting Canada’s expertise and capacity for innovation.
  • Balancing economic growth: The Liberals aim to balance welcoming foreign investment with protecting Canada's economic interests and national security. The goal is to attract investment while safeguarding intangible assets like intellectual property and trade secrets, ensuring economic growth and job opportunities without compromising sovereignty.
  • Aligning with international partners: The amendments in Bill C-34 would better align Canada with international partners and allies by introducing requirements for prior notification of certain investments, the authority to impose interim conditions, and the ability to share case-specific information to support national security assessments.

Conservative

  • Inadequate to address threats: The Conservatives believe the bill does not go far enough to address acquisitions by hostile states. Members noted that it has been 14 years since the act was amended and that state-owned enterprises have become extraterritorial in taking over companies globally for their own economic interests. The Conservatives feel the bill is too limited in scope to address the new challenges of a globalized economy.
  • Missed opportunities identified: Conservatives believe the bill does not adequately protect Canadian assets, companies, and sovereignty. They proposed several amendments that were rejected, including modifying the definition of “state-owned enterprises”, listing specific sectors necessary to preserve Canada's national security, and exempting non-Canadian Five Eyes intelligence state-owned enterprises from the national security review process.
  • Cabinet decision-making is essential: The Conservatives are concerned about removing cabinet from the decision-making process, as it eliminates regional perspectives and the breadth of experience from various ministers. An amendment was proposed to ensure that cabinet continues to play an active role in major decisions about foreign investment.
  • Acknowledges positive amendments: Conservatives highlight some amendments that were adopted, including reducing the threshold to trigger a national security review to zero for any investment by a state-owned enterprise and ensuring that items reviewable include acquisitions of any assets by state-owned enterprises. They also included ensuring a review if a company had previously been convicted of corruption charges.

NDP

  • Supports updating the Act: The NDP supports updating the Investment Canada Act (ICA) to reflect changes since 2009. Members believe that the bill creates more tools to ensure foreign investments align with Canada's best interests and national security.
  • Focus on intellectual property: The NDP emphasizes the need to protect intellectual property in a knowledge-based economy, supporting amendments to capture potential investments or acquisitions by foreign actors. They argue that thresholds should consider the economic value of intellectual property to ensure sensitive IP is reviewed appropriately.
  • Weaknesses remain in legislation: NDP members express concerns about the government's willingness to prioritize corporate interests over Canadian interests, citing the Rogers-Shaw merger as an example. They suggest that changing the act is insufficient without the political will to conduct thorough reviews and reject investments that do not benefit Canada.
  • State-owned enterprises: The NDP argues that the act should mandate review of acquisitions by state-owned enterprises of companies previously reviewed by the ICA. They cite the example of Anbang's acquisition of Retirement Concepts and the subsequent seizure by the Chinese government as a reason.

Bloc

  • Supports bill overall: Bloc Québécois supports Bill C-34, which amends the Investment Canada Act to strengthen the government's ability to monitor foreign investments that could compromise Canada's national security. They see it as a necessary first step in an increasingly interconnected world.
  • Protecting Quebec's economy: The Bloc emphasizes the importance of protecting Quebec's economy from potentially detrimental foreign interests. They are concerned about the impact of foreign investment on Quebec's aerospace industry and intellectual property.
  • Coordination with U.S.: The Bloc recognizes that Bill C-34 aligns Canadian security policies with those of the United States. This alignment is essential for Canada to be included in the U.S. industrial modernization strategy.
  • Review threshold too high: The Bloc believes that the bill is incomplete and that the government needs to go further in scrutinizing foreign investment. They advocate for lowering the review threshold so that more investment projects are subject to review.
  • Need economic security: While national security is important, the Bloc emphasizes the need for economic security and long-term prosperity. They caution against the harmful effects of ill-advised foreign investments on the Canadian economy.

Green

  • Bill C-34 concerns: The speaker regrets the limited opportunity for the Green Party to participate in the debate on Bill C-34. There are concerns that cabinet decision-making is too discretionary and worries about foreign investments affecting national security and sovereignty.
  • Aecon takeover concern: The speaker raised concerns about the proposed takeover of Aecon, a large Canadian engineering firm, by a company from the People's Republic of China. They questioned the need for a national security review and highlighted the implications of the Foreign Investment Promotion and Protection Agreement (FIPA) with China.
  • Paper Excellence worries: The speaker is alarmed by the takeover of Canada's pulp and paper production by Paper Excellence, owned by an Indonesian billionaire. They question whether this poses a national security threat and express concern that the acquisition happened without a foreign investment review.
Was this summary helpful and accurate?

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 6:45 p.m.

The Assistant Deputy Speaker (Mrs. Alexandra Mendès) Alexandra Mendes

I apologize but the hon. member's phone is either vibrating or making some sort of sound.

The hon. member for Selkirk—Interlake—Eastman.

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 6:45 p.m.

Conservative

James Bezan Conservative Selkirk—Interlake—Eastman, MB

Madam Speaker, it was foreign interference. We are talking about national security and, of course, we know that we have had foreign interference in our democratic institutions right here. It all ties in together very well.

I will continue with how critical supply chains are. Although we may not be able to produce all things right here in Canada, we should be producing them at least within our Five Eyes, where we know there are the same security controls and concerns that we have here in Canada. Thus, we can ensure that we have control of things that are important for building defence infrastructure and national security infrastructure, as well as providing security and public safety for Canadians at large. Again, we fail to see that recognized to any great degree.

All we have to do is look at the recent record of the Liberal government when it comes to foreign companies owning businesses here that have engaged in espionage and continue to raise major security issues. We can also look at what is happening in our universities and what happened at the Winnipeg labs, where the government allowed and gave work visas to people who were doing research on behalf of the People's Liberation Army. That is the Communist Party of China's military organization. Scientists from the PLA were put into our universities and the Winnipeg labs; they got information on all sorts of intel and then were able to take that back to mainland China.

We have already talked about Sinclair Technologies, which provides a lot of the security screening equipment that we see at our embassies and that is used by the RCMP, the Canada Border Services Agency and our airports. That company was bought up by Hytera, but the government continued to award contracts to Sinclair Technologies, which was now under the control of Beijing.

No one can forget about Huawei and the way the Liberals dithered, delayed and dragged their feet, kicking and screaming, until they finally banned Huawei from our 5G network here in Canada. This was after the United States raised red flags and banned it from its 5G network, as well as after Australia, New Zealand and the United Kingdom did so. Our Five Eyes partners stepped up and said, “We are banning Huawei, why aren't you?” However, there was no good answer coming from the government. It took another 24 months before finally making the decision to ban Huawei, which had incredible switches and back doors linking intel right into the PRC at its headquarters in Beijing.

We could also talk about TikTok. It is an app that many of our young Canadians are familiar with, and it is used around the world. We banned it from all our devices here in Parliament and in the Government of Canada. However, I know that there is great concern being raised in the United States about this technology, which is still being used by our millennials and by generation X. We know that the PRC's socialist ideology has been instilled in and permeated through TikTok, and it has been promoted and used more and more. We have to take these things seriously, because these state-controlled enterprises are not so much worried about the consumer. They are definitely not worried about our democracy right here in Canada or our allies; they are doing everything they can to undermine it.

I now want to talk about something that is very important to us, which is our critical minerals. We have large deposits of lithium across this country. We have already talked about Neo Lithium, which is now owned by Zijin Mining out of Beijing, and it is hoping to develop those mineral resources here and take them back to China rather than developing them in Canada.

We have Sinomine here, which got access to three large lithium deposits in northwestern Ontario. I will give credit, because the government actually made it divest those resources and sell them back into Canadian control. However, the government still lets Sinomine operate in Canada. If the government is so concerned about Sinomine controlling those lithium deposits in Ontario, why was it not concerned about Sinomine, just in 2019, buying Tanco mines in Manitoba? It also has a mine just outside my riding, headquartered in my riding in Lac du Bonnet, that has lithium and 65% of the world's cesium. It also produces tantalum, which is used in electronics and warheads on nuclear missiles.

All of the ore that they are producing right now in Manitoba is not refined in Manitoba. They ship it out raw, back to mainland China, and none of it ever comes back to Canada. This is something very concerning. The government turned a blind eye in 2019. Rather than looking at lithium and the Tanco mine, which, at that point in time, was U.S.-owned, and saying it wanted to make sure those critical minerals stay within Canadian or at least North American ownership, it allowed a Chinese company to come in here, buy it up and take all those resources straight back to China.

That undermines our overall goal. The Government of Canada has a goal to produce more electric vehicle batteries, and the lithium being produced right now in Canada is actually all going to China, undermining our ability to sustain the critical supply line to the EV battery plants that are being built in Ontario.

I just want to say that we do have a lack of coordination with the government, between its foreign investment plan and its Special Economic Measures Act, SEMA, which sanctions those who are responsible for gross human rights violations and for destabilizing peace and security in the world. We have things that have happened here in Canada. I will use Roman Abramovich as an example. He owned Evraz, the steel mills in western Canada. Again, we have not seen those holdings liquidated and provided to support Ukraine's war effort against the Russian invaders. We know there are Russian hawks out there who own things like Buhler Industries, which also sells out of Russia. Konstantin Babkin, one of the top people there, has been out there supporting Russia and denouncing Ukraine, yet they are still allowed to benefit from Canada's economy and our strong manufacturing industry.

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 6:55 p.m.

The Assistant Deputy Speaker (Mrs. Alexandra Mendès) Alexandra Mendes

It being 6:57 p.m., pursuant to order made earlier today, it is my duty to interrupt the proceedings and put forthwith every question necessary to dispose of the report stage of the bill now before the House.

The question is on Motion No. 1. A vote on this motion also applies to Motion No. 2.

Shall I dispense?

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 6:55 p.m.

Some hon. members

No.

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 6:55 p.m.

The Assistant Deputy Speaker (Mrs. Alexandra Mendès) Alexandra Mendes

[Chair read text of motion to House]

If a member participating in person wishes that the motion be carried or carried on division, or if a member of a recognized party participating in person wishes to request a recorded division, I would invite them to rise and indicate it to the Chair.

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 6:55 p.m.

Liberal

Mark Gerretsen Liberal Kingston and the Islands, ON

Madam Speaker, I would ask for a recorded vote.

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 6:55 p.m.

The Assistant Deputy Speaker (Mrs. Alexandra Mendès) Alexandra Mendes

The recorded division on Motion No. 1 stands deferred.

The recorded division will also apply to Motion No. 2.

The question is on Motion No. 3.

If a member of a recognized party present in the House wishes that the motion be carried or carried on division, or wishes to request a recorded division, I invite them to rise and indicate it to the Chair.

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 6:55 p.m.

Liberal

Mark Gerretsen Liberal Kingston and the Islands, ON

Madam Speaker, we request a recorded division.

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 6:55 p.m.

The Assistant Deputy Speaker (Mrs. Alexandra Mendès) Alexandra Mendes

The recorded division on Motion No. 3 stands deferred.

The House would normally proceed with the deferred recorded division on the report stage of the bill. However, pursuant to Standing Order 45, the recorded divisions stand deferred until Tuesday, November 7, at the expiry of the time provided for Oral Questions.

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 6:55 p.m.

Liberal

Mark Gerretsen Liberal Kingston and the Islands, ON

Madam Speaker, I believe that, if you seek it, you will find unanimous consent to see the clock at 7:12 p.m., so we could start Adjournment Proceedings.

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 7 p.m.

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 7 p.m.

Some hon. members

Agreed.

The House resumed from November 6 consideration of Bill C-34, An Act to amend the Investment Canada Act, as reported (with amendments) from the committee, and of the motions in Group No. 1.

National Security Review of Investments Modernization ActGovernment Orders

November 7th, 2023 / 3:30 p.m.

The Speaker Greg Fergus

It being 3:30 p.m., pursuant to order made on Monday, November 6, the House will now proceed to the taking of the deferred recorded divisions on the motion at report stage of Bill C-34.

Call in the members.

And the bells having rung:

National Security Review of Investments Modernization ActGovernment Orders

November 7th, 2023 / 3:30 p.m.

The Speaker Greg Fergus

The question is on Motion No. 1. A vote on this motion also applies to Motion No. 2.