Chinese-controlled company fights Ottawa's order to divest assets on security grounds

China Mobile International Canada is asking the Federal Court to set aside the recent decision, saying the government has no grounds to believe the company would compromise security or engage in espionage on behalf of Beijing.

China's actions against Spavor and Kovrig are widely seen in the West as retaliation for the late 2018 arrest by Canadian authorities of Meng Wanzhou, an executive with Chinese firm Huawei Technologies, so she can be extradited to the U.S. to face fraud charges. CMI Canada says it inadvertently neglected to inform the federal government of its presence as a new Canadian business until October of last year. A series of requests for information from federal officials soon followed.

Following additional information exchanges, the government issued an Aug. 9 order directing China Mobile to either divest itself entirely of or wind up the Canadian business within 90 days.

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