Canada to tighten foreign investment rules

Canada has proposed legislation that would tighten rules on foreign investment in the country, helping the government better address “evolving threats that may arise from foreign investment.”

Proposed changes to the Investment Canada Act – ICA – include powers to impose conditions during a national security review on foreign investment and tougher penalties for non-compliance, Canadian Industry Minister Francois-Philippe Champagne said.

Champagne also said the updated ICA will help Canada continue to act decisively when investments threaten its national security.

The proposed changes to the ICA are designed to make national security investment screening “more efficient and flexible.”

Last month, Canada asked three Chinese companies to divest themselves of their investments in Canadian key minerals following a national security review.