China deal not a threat to security, Trudeau says

Opposition MPs raise concern over Chinese takeover of satellite technology company

OTTAWA— Prime Minister Justin Trudeau is making his strongest defence yet of his government’s decision to allow a Chinese telecom giant to take over a Canadian satellite technology company.

Trudeau says an initial government review of the takeover, required under federal law, unearthed no significant national security risk and didn’t require any further reviews, allowing the deal to be allowed to proceed.

He insists his government would never approve any foreign takeover if there is even a hint of concern that it would harm national security.

Hytera Communications Co. Ltd. is set to take over Vancouver-based Norsat International Inc., which supplies materials to the U.S. military and Canada’s NATO partners.

The deal has been the focus of a debate over national security risks and the federal government’s willingness to approve a Chinese takeover of a Canadian technology company.

Opposition MPs have repeatedly raised concerns about the takeover and there is unease among congressional representatives in the United States about allowing the Chinese firm to have access to sensitive defence technology.

It was only earlier this month that the results of the review were made public.

The national security agencies involved in the review recommended the deal to be allowed to proceed, Trudeau said.

“The review they did was adequate to give them confidence that there was no risk to national security. Therefore, their recommendation to the minister was to allow it to proceed. So we did,” he said.