Ottawa Blocks Executive Appointment at Chinese-Owned Laser Company in Quebec on Security Grounds
A Chinese-owned Quebec laser company is taking the federal government to court after it blocked the appointment of an executive on security grounds. Ottawa had approved the acquisition of the Quebec-based high-tech firm by a Chinese company in 2017, in a controversial move criticized by U.S. lawmakers citing security concerns. The federal government had imposed security-related conditions on the acquisition of CorActive High Tech Inc., which manufactures specialized fibre-laser and optical-fibre technology, after Chinese company Han’s Laser Technology Industry Group acquired a majority stake in the company in November 2016. Industry Minister Mélanie Joly blocked the proposed appointment of Xiaokai “Denver” Zeng to CorActive’s board in June, citing concerns that sensitive technology could be transferred in ways that “benefit foreign militaries,” according to court filings. Zeng heads Han’s Laser Corp., the U.S. subsidiary of China-based Han’s Laser Technology Industry Group. Zeng became an American citizen in 2024....
TL;DR
- A Chinese-owned Quebec laser company is taking the federal government to court.
- The government blocked the appointment of Xiaokai “Denver” Zeng to the company's board on security grounds.
- Concerns were raised that sensitive technology could be transferred to benefit foreign militaries.
- The acquisition of the Quebec firm by a Chinese company was approved in 2017 with security conditions.
- The executive in question heads the U.S. subsidiary of the Chinese parent company.