CSIS Report Says China Committing Espionage Against Canadian Institutions, Defence Contractors

A sign for the Canadian Security Intelligence Service building in Ottawa, in a file photo. (Sean Kilpatrick/The Canadian Press)

The Canadian Security Intelligence Service (CSIS) 2022 report stated that the People’s Republic of China (PRC) is continuing to engage in espionage against Canadian academic institutions, defence contractors, and civil society organizations.

“As a global leader in research and innovation, Canada is a prime target for the PRC’s intangible technology transfer efforts. China targets research through legal, illegal and other unregulated means in order to augment its science and technology sector,” the report states.

“These policies and plans aim to exploit the collaborative, transparent, and open nature of Canada’s research and innovation sector in order to serve the PRC’s economic, intelligence, and military interests.”

The report, published on May 4, details the numerous threats facing Canada from both hostile foreign states and non-state actors. The report claims that in an “increasingly dangerous and polarized world,” Canada faces multiple threats to its security, national interests, and values.

The PRC and its ruling Chinese Communist Party (CCP), according to the report, have established policies that exploit the “collaborative, transparent, and open nature” of Canada’s research and innovation sector in order to serve China’s interests. Chinese citizens, entrepreneurs, foreign scientists, and diaspora are encouraged to commit espionage against Canadian companies and institutions.

The report states that due to COVID-19, advances in medical and health research have become more valuable to foreign states, which will use cyberattacks and espionage to obtain related technologies, data, and research. “In addition to protecting Canadian data, the bio-health landscape will also need to develop and maintain reliable supply chains for basic medical supplies, equipment, therapeutics and pharmaceuticals.”

Foreign Interference

The report mentioned that foreign states may interfere with Canada’s democratic institutions and processes—such as by influencing elections, shaping public discourse, or influencing the policy positions of elected officials—in order to achieve their short and long-term strategic objectives.

The report noted that sub-national affiliates of China’s Ministry of Public Security (MPS) set up three overseas “police stations” in Canada without the permission of the federal government.

CSIS also observed instances where representatives from investigatory bodies in China came to Canada without notifying local law enforcement agencies, and used threats and intimidation in attempting to force “fugitive” Chinese Canadians to return to China.

The report also mentions that Russian cyber actors “continue to pose a significant threat” to Canada, while smaller hostile states like Iran are combining cyber operations with psychological operations in order to enhance their ability to influence individuals and societies.

“These threat actors must be held accountable for their clandestine activities,” the report states. “CSIS will continue to investigate, identify and reduce the threats that foreign interference pose to Canada’s national interests and sovereignty, and will work closely with domestic and international partners in this effort to advise government.”

Ideologically Motivated Violent Extremism

According to the report, ideologically motivated violent extremism (IMVE) poses a “significant national security threat” to Canada, with many loosely-networked, cross-Canada movements exposing xenophobic, anti-authority, and gender-driven grievances “without clear affiliation or external guidance.”

The COVID-19 pandemic exacerbated xenophobic and anti-authority narratives, according to the report, which have undermined trust in the integrity of the Canadian government and confidence in scientific expertise.

The report said CSIS now dedicates 50 percent of its counterterrorism resources to investigating IVME threats targeting elected officials, government representatives, journalists, racialized groups, religious minorities, members of the LGBTQ2+ community, and women.

In 2022, CSIS also saw the continued spread of misinformation and disinformation by state and non-state actors that are “aware of the impact the proliferation of information manipulation has on open democratic societies.” The report said that as Canadians transition from conventional news media to a “digital news environment,” state actors have used proxy amplifiers on social media to support their messaging.

“Social media’s ability to bring fringe views into the mainstream public discourse enables state actors to polarize Canadian public opinion through repeated exposure to conspiratorial messaging,” the report states. “Online platforms can serve as echo chambers of hate, where like-minded individuals are able to connect and communicate anonymously and mobilization to violence can occur rapidly.”