QUESTION PERIOD — Foreign Affairs
Canada-China Relations
June 23, 2021
Honourable senators, my question is for the government leader in the Senate.
A House committee has issued a report on the government’s procurement on security screening equipment for Canada’s embassies around the world. The contract was awarded to Nuctech back in July 2020, a Chinese company that answers to the Chinese Communist Party and has links to the People’s Liberation Army, because the price is right.
The committee’s number one recommendation is:
That the Government of Canada prohibit Chinese state-owned enterprises, partial state-owned enterprises, including companies receiving undisclosed government subsidies, and technology companies from obtaining federal contracts related to information technology or security equipment or services.
Senator Gold, you know the Chinese government uses every means to infiltrate and spy on our country and our allies. Why would the government even think of allowing a state-owned Chinese company to bid on such sensitive contracts to equip our embassies, much less be awarded the contract in the first place?
Thank you for your question, senator.
The government is grateful to the House of Commons Standing Committee on Government Operations and Estimates for their report, and they will review it closely. The government takes the security and safety of people in Canadian embassies, consuls and high commissions around the world very seriously; it’s a top priority.
But, senators, to be clear, the government did not purchase any equipment from Nuctech and will not use the Nuctech standing offer.
As you know, Deloitte Canada conducted a third-party review of government purchasing practices and concluded that there were no instances of non-compliance with regard to this standing offer. But the review did identify opportunities for improvement with respect to future procurement of security equipment.
I’ve been advised that Global Affairs Canada is taking action to implement improvements to the government process that the third-party review recommended.
The committee report also noted that the state-owned enterprises like Nuctech depend upon generous government subsidies that enable them to undercut the competition during the bidding process. The Government of Canada is well aware of this and is even in dispute with China over this very issue. The Trudeau government rewarded them not only with this contract, but four other contracts going all the way back to 2017.
Senator Gold, in light of this committee report, will the Trudeau government review the other contracts that remain active?
Thank you for your question.
The government is reviewing all aspects of its relationships with China, and that includes issues surrounding contracts and the like. The Government of Canada is very aware of the increasing challenges that our relationship with China poses to our security interests.
