Thank you, Madam Chair and members of the committee. Good afternoon.
I'm currently the assistant director of requirements at the Canadian Security Intelligence Service. Among other things, my directorate is responsible for the analysis of intelligence that CSIS collects on threats to the security of Canada. Our intelligence assessments and the advice are provided to the government to inform decision-making.
I want to thank you for the invitation today to participate in the committee's study of the Investment Canada Act.
I want to begin by briefly outlining CSIS's mandate, which is to investigate activities suspected of constituting a threat to the security of Canada, to advise the Government of Canada on these threats, and to take measures to reduce these threats. The threats to the security of Canada are defined in section 2 of the CSIS Act as espionage or sabotage, foreign-influenced activities, terrorism and subversion of government through violence.
As discussed in our recent public report, state-sponsored economic espionage activities in Canada continue to increase in breadth, depth and potential economic impact. In order to fulfill their national economic, intelligence and military interests, some foreign states engage in espionage activities. Foreign espionage has significant economic ramifications for Canada, including lost jobs, intellectual property, and corporate and tax revenues, as well as competitive advantages.
With our economic prosperity and our open academic and research communities, Canada offers attractive prospects to foreign investors. Although foreign investment is a key driver of Canada's economic prosperity, it also has the potential, in certain cases, to adversely affect our national security. The acquisition of sensitive intellectual property, technology, or vast amounts of Canadian citizens' private data for foreign use, or with foreign-state control, can threaten national security. While the vast majority of the foreign investment in Canada is carried out in an open and transparent manner, some state-owned enterprises and private firms with suspected or known ties to their government and/or intelligence services can pursue corporate acquisition bids in Canada or other economic activities on a non-commercial basis for their own strategic objectives.
Foreign states have engaged in espionage and foreign interference targeting Canada for years. This is not a new activity. CSIS director Vigneault has spoken publicly about the impact of these threats to Canada's economy and national interests, including the threats posed by China and Russia. In its 2019 review of foreign interference and public report, the National Security and Intelligence Committee of Parliamentarians also reflects that these, among other states, are of concern.
While I cannot speak in detail about any operational matters, I can assure you that CSIS is actively investigating all suspected threats of foreign interference and espionage, and we engage with your NSICOP colleagues on these important matters in a classified space.
These threats pose particular concerns during the COVID-19 pandemic, which has created economic vulnerabilities for Canadian companies upon which foreign threat actors may seek to capitalize.
To assess such impacts, the ICA authorizes the government to review foreign investments on national security grounds. CSIS is a prescribed investigative body under the national security provisions of the ICA. As such, the service conducts investigative efforts related to national security concerns arising from foreign investments linked to foreign government entities. CSIS obviously works with other government departments and agencies—these include Innovation, Science and Economic Development Canada, the Department of National Defence, the Communications Security Establishment and the RCMP—to provide advice in support of the national security review process.
While I cannot comment publicly on any specific advice that CSIS has provided, or on any specific ICA transactions, I would note that it's ultimately within the prerogative of the Governor in Council to allow, disallow or impose mitigation measures on investments that would be injurious to Canada's national security.
Corporate acquisition is not the only way through which hostile actors can threaten Canada's economic security. Threat actors can also access proprietary government information through cyber-attacks, espionage and insider threats. Insiders are individuals with direct access to the systems and intellectual property in corporate and research environments. This could potentially include business people, scientists and researchers. Put another way, today's spies also wear lab coats, not just trench coats.
CSIS observes that technology or know-how particularly in academia and small to medium-sized enterprises is often less protected and more vulnerable to state-sponsored espionage.
Thank you very much. That ends my opening comments.