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Canada to toughen foreign investment rules for AI, space technology

Canada to toughen foreign investment rules for AI, space technology

BNN Bloomberg
Tuesday, March 26, 2024 2:50 PM GMT

Canada will tighten its scrutiny of foreign investments in artificial intelligence, quantum computing and space technology as the government expands its power to stall and block deals for national security reasons.

Non-Canadian companies will have to give advance warning to the government before they invest in or acquire Canadian entities in those key technology sectors, Industry Minister Francois-Philippe Champagne said in an interview with Bloomberg. The tougher rules will also apply to investments in critical minerals and potentially other sectors, he said. 

The idea is to buy the government time to conduct a national-security review before any transaction gets too far advanced. The would-be buyer or investor may be restricted in its access to the target company’s user data or other property while the inquiry is taking place, Champagne said.

It’s the first time he has outlined some of the industries and technologies that will fall under beefed-up regulations to be attached to the Investment Canada Act, which is one of the major laws governing foreign investment in the country and was recently revamped.

Read full story on BNN Bloomberg
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