Business
Ottawa Slams Eby Government Over Chinese Shipyard Deal, Citing Security and Sovereignty Risks

Sam Cooper
Western security analysts have warned that China’s commercial shipyards routinely serve dual-use purposes, supporting both civilian contracts and the expansion of the People’s Liberation Army Navy. A 2024 report by the Center for Strategic and International Studies warned that foreign customers contracting with Chinese state-owned shipbuilders may be inadvertently “subsidizing the growth of China’s naval power.”
Stung by a political firestorm over his provincial government’s decision to hand a massive shipbuilding contract to Chinese suppliers that critics say could bolster Xi Jinping’s military capabilities and undermine Canadian national security, B.C. Premier David Eby late Friday night reluctantly released a searing letter from federal Transport Minister Chrystia Freeland.
The letter, dated June 16 and addressed to B.C. Transportation Minister Mike Farnworth, expresses Freeland’s “consternation and disappointment” over BC Ferries’ decision to select China Merchants Industry Weihai—a subsidiary of a state-owned Chinese conglomerate closely tied to Beijing’s military-civil fusion strategy and Belt and Road Initiative—to build four new major vessels.
“I am dismayed that BC Ferries would select a Chinese state-owned shipyard to build new ferries in the current geopolitical context,” Freeland wrote. She demanded that Farnworth “verify and confirm with utmost certainty that no federal funding will be diverted to support the acquisition of these new ferries.”
Freeland emphasized that the Government of Canada has provided “long-standing financial support” to British Columbia’s ferry system, including “approximately $37.8 million” annually under a 1977 agreement, $308 million to cover pandemic-related operating losses, and “a $75-million loan to BC Ferries to help purchase four net-zero emission ferries.”
“Given the value of the contract and the level of taxpayer funding that has been provided to support BC Ferries’ operations,” Freeland wrote, “I am surprised that BC Ferries does not appear to have been mandated to require an appropriate level of Canadian content in the procurement or the involvement of the Canadian marine industry.”
The letter, which had been withheld by Eby’s government for nearly a week, was quietly released to the public just before midnight Eastern Time Friday—only after repeated demands in Parliament by Conservative MP Dan Albas, who posted on social media: “People deserve that transparency.”
The political backlash mounted swiftly following Eby’s disclosure of the deal with China. BC Conservative leader John Rustad accused Eby and BC Ferries of failing to account for the broader strategic risks of contracting with a Chinese state-owned entity during a period of rising global tensions.
“There’s lots of rhetoric going back and forth between the United States and China, friction with Taiwan,” Rustad told Postmedia. “Who knows what may happen? Hopefully nothing by 2029 to 2031, which is when these ships are going to start to be constructed and delivered.”
It’s not a far-fetched concern. During the COVID-19 pandemic, Prime Minister Justin Trudeau’s government entered into a vaccine partnership with CanSino Biologics—a company with links to China’s People’s Liberation Army—only for Beijing to block shipment of the vaccine, abruptly collapsing the deal.
In her June 16 letter, Freeland warned the B.C. government that “ongoing concerns regarding threats to security, including cybersecurity, from China” required urgent attention. She asked for clear commitments that BC Ferries had conducted “a robust risk assessment” and demanded to be informed of the steps being taken to “reduce the risks of outside influence or control from cybersecurity vulnerabilities,” and to “mitigate the risks that vessel maintenance and spare parts may pose.”
Freeland further linked the deal to Beijing’s retaliatory economic measures, writing, “China has imposed unjustified tariffs on Canada, including 100% tariffs on canola oil, meal, and pea imports, and a 25% duty on Canadian aquatic products and pork. These tariffs have affected about 36% of Canadian agriculture businesses and are directly impacting the livelihood of Canadians.”
China Merchants Industry Weihai is a subsidiary of China Merchants Group, a massive state-owned enterprise that has played a central role in advancing Beijing’s Belt and Road Initiative since 2013. The conglomerate operates ports and shipyards across Asia, Europe, and Africa—including strategic holdings in Greece, Lithuania, Nigeria, and Djibouti—and is a central player in the Chinese Communist Party’s military-civil fusion strategy.
Western security analysts have warned that China’s commercial shipyards routinely serve dual-use purposes, supporting both civilian contracts and the expansion of the People’s Liberation Army Navy. A 2024 report by the Center for Strategic and International Studies warned that foreign customers contracting with Chinese state-owned shipbuilders may be inadvertently “subsidizing the growth of China’s naval power.”
Valued in the hundreds of millions, the contract will see the Chinese yard begin delivering the vessels between 2029 and 2031.
Rustad further told Postmedia that the province’s reliance on foreign state-controlled suppliers for strategic transportation infrastructure was “not just irresponsible, it’s a betrayal of Canadian workers and economic independence.”
The BC Federation of Labour has also raised concerns about the use of public money to finance offshore contracts that benefit authoritarian regimes, and Canadian maritime industry groups have renewed calls for a federal policy mandating domestic content in major shipbuilding procurements.
First established in 2016 under then-premier Christy Clark through a Memorandum of Understanding with China’s Guangdong province, the B.C.–Belt and Road Initiative pact laid the groundwork for collaboration on maritime trade, infrastructure, and shipbuilding with Chinese state-owned firms. Those ties expanded under Premier John Horgan, whose NDP government promoted deeper bilateral economic relations. The BC Ferries procurement—while legally made by an independent board—proceeded within a framework Premier Eby’s administration continues to support.
New research reported by The Bureau and published by the Washington-based Jamestown Foundation adds a sharp dimension to these concerns. The Foundation warns that criminal and political networks promoting Xi Jinping’s Belt and Road Initiative have been linked to Chinese transnational organized crime and covert Communist Party influence operations.
According to the report, a global syndicate known as Hongmen—also referred to as the Chinese Freemasons—has been deeply embedded in both criminal activity and Beijing’s “united front” operations, which support the CCP’s geopolitical aims including the annexation of Taiwan and BRI expansion.
“The organization’s sprawling structure includes affiliated offices across the globe from Hong Kong and Nairobi to Toronto and Madrid,” the report states. “The Chinese Communist Party has turned a blind eye as Hongmen ventures have expanded across One Belt One Road countries, in part because these organizations serve the purposes of united front work.”
The Jamestown Foundation’s findings echo longstanding concerns within Canada’s intelligence community regarding BRI-linked actors and opaque Chinese political networks operating in the country—especially in British Columbia, which remains the only jurisdiction in North America to have signed a formal Belt and Road agreement with Beijing.
Premier Eby has not apologized for the decision. He told reporters last week that the province would not interfere with BC Ferries’ independent board, which selected the Chinese yard based on cost and delivery timelines.
Whether mounting federal pressure and scrutiny from security experts will force a review remains an open question.
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Business
Conservatives demand probe into Liberal vaccine injury program’s $50m mismanagement

From LifeSiteNews
The Liberals’ Vaccine Injury Support Program is accused of mismanaging a $50-million contract with Oxaro Inc. and failing to resolve claims for thousands of vaccine-injured Canadians.
Conservatives are calling for an official investigation into the Liberal-run vaccine injury program, which has cost Canadians millions but has little to show for it.
On July 14th, four Conservative Members of Parliament (MPs) signed a letter demanding answers after an explosive Global News report found the Liberals’ Vaccine Injury Support Program (VISP) misallocated taxpayer funds and disregarded many vaccine-injured Canadians.
“The federal government awarded a $50 million taxpayer-funded contract to Oxaro Inc. (formerly Raymond Chabot Grant Thornton Consulting Inc.). The purpose of this contract was to administer the VISP,” the letter wrote.
“However, there was no clear indication that Oxaro had credible experience in healthcare or in the administration of health-related claims raising valid questions about how and why this firm was selected,” it continued.
Canada’s VISP was launched in December 2020 after the Canadian government gave vaccine makers a shield from liability regarding COVID-19 jab-related injuries.
However, mismanagement within the program has led to many injured Canadians still waiting to receive compensation, while government contractors grow richer.
“Despite the $50 million contract, over 1,700 of the 3,100 claims remain unresolved,” the Conservatives continued. “Families dealing with life-altering injuries have been left waiting years for answers and support they were promised.”
Furthermore, the claims do not represent the total number of Canadians injured by the allegedly “safe and effective” COVID shots, as inside memos have revealed that the Public Health Agency of Canada (PHAC) officials neglected to report all adverse effects from COVID shots and even went as far as telling staff not to report all events.
The PHAC’s downplaying of vaccine injuries is of little surprise to Canadians, as a 2023 secret memo revealed that the federal government purposefully hid adverse effect so as not to alarm Canadians.
Of the $50.6 million that Oxaro Inc., has received, $33.7 million has been spent on administrative costs, compared to only $16.9 million going to vaccine-injured Canadians.
The letter further revealed that former VISP employees have revealed that the program lacked professionalism, describing what Conservatives described as “a fraternity house rather than a professional organization responsible for administering health-related claims.”
“Reports of constant workplace drinking, ping pong, and Netflix are a slap in the face to taxpayers and the thousands of Canadians waiting for support for life altering injuries,” the letter continued.
Regardless of this, the Liberal government, under Prime Minister Mark Carney, is considering renewing its contract with Oxaro Inc.
Indeed, this would hardly be the first time that Liberals throw taxpayer dollars at a COVID program that is later exposed as ineffective and mismanaged.
Canada’s infamous ArriveCan app, which was mandated for all travelers in and out of Canada in 2020, has cost Canadians $54 million, despite the Public Health Agency of Canada admitting that they have no evidence that the program saved lives.
Details regarding the app and the government contracts surrounding it have been hidden from Canadians, as Liberals were exposed in 2023 for hiding a RCMP investigation into the app from auditors.
An investigation of the ArriveCan app began in 2022 after the House of Commons voted 173-149 for a full audit of the controversial app.
Business
Canada must address its birth tourism problem

By Sergio R. Karas for Inside Policy
One of the most effective solutions would be to amend the Citizenship Act, making automatic citizenship conditional upon at least one parent being a Canadian citizen or permanent resident.
Amid rising concerns about the prevalence of birth tourism, many Western democracies are taking steps to curb the practice. Canada should take note and reconsider its own policies in this area.
Birth tourism occurs when pregnant women travel to a country that grants automatic citizenship to all individuals born on its soil. There is increasing concern that birthright citizenship is being abused by actors linked to authoritarian regimes, who use the child’s citizenship as an anchor or escape route if the conditions in their country deteriorate.
Canada grants automatic citizenship by birth, subject to very few exceptions, such as when a child is born to foreign diplomats, consular officials, or international representatives. The principle known as jus soli in Latin for “right of the soil” is enshrined in Section 3(1)(a) of the Citizenship Act.
Unlike many other developed countries, Canada’s legislation does not consider the immigration or residency status of the parents for the child to be a citizen. Individuals who are in Canada illegally or have had refugee claims rejected may be taking advantage of birthright citizenship to delay their deportation. For example, consider the Supreme Court of Canada’s ruling in Baker v. Canada. The court held that the deportation decision for a Jamaican woman – who did not have legal status in Canada but had Canadian-born children – must consider the best interests of the Canadian-born children.
There is mounting evidence of organized birth tourism among individuals from the People’s Republic of China, particularly in British Columbia. According to a January 29 news report in Business in Vancouver, an estimated 22–23 per cent of births at Richmond Hospital in 2019–20 were to non-resident mothers, and the majority were Chinese nationals. The expectant mothers often utilize “baby houses” and maternity packages, which provide private residences and a comprehensive bundle of services to facilitate the mother’s experience, so that their Canadian-born child can benefit from free education and social and health services, and even sponsor their parents for immigration to Canada in the future. The financial and logistical infrastructure supporting this practice has grown, with reports of dozens of birth houses in British Columbia catering to a Chinese clientele.
Unconditional birthright citizenship has attracted expectant mothers from countries including Nigeria and India. Many arrive on tourist visas to give birth in Canada. The number of babies born in Canada to non-resident mothers – a metric often used to measure birth tourism – dropped sharply during the COVID-19 pandemic but has quickly rebounded since. A December 2023 report in Policy Options found that non-resident births constituted about 1.6 per cent of all 2019 births in Canada. That number fell to 0.7 per cent in 2020–2021 due to travel restrictions, but by 2022 it rebounded to one per cent of total births. That year, there were 3,575 births to non-residents – 53 per cent more than during the pandemic. Experts believe that about half of these were from women who travelled to Canada specifically for the purpose of giving birth. According to the report, about 50 per cent of non-resident births are estimated to be the result of birth tourism. The upward trend continued into 2023–24, with 5,219 non-resident births across Canada.
Some hospitals have seen more of these cases than others. For example, B.C.’s Richmond Hospital had 24 per cent of its births from non-residents in 2019–20, but that dropped to just 4 per cent by 2022. In contrast, Toronto’s Humber River Hospital and Montreal’s St. Mary’s Hospital had the highest rates in 2022–23, with 10.5 per cent and 9.4 per cent of births from non-residents, respectively.
Several developed countries have moved away from unconditional birthright citizenship in recent years, implementing more restrictive measures to prevent exploitation of their immigration systems. In the United Kingdom, the British Nationality Act abolished jus soli in its unconditional form. Now, a child born in the UK is granted citizenship only if at least one parent is a British citizen or has settled status. This change was introduced to prevent misuse of the immigration and nationality framework. Similarly, Germany follows a conditional form of jus soli. According to its Nationality Act, a child born in Germany acquires citizenship only if at least one parent has legally resided in the country for a minimum of eight years and holds a permanent residence permit. Australia also eliminated automatic birthright citizenship. Under the Australian Citizenship Act, a child born on Australian soil is granted citizenship only if at least one parent is an Australian citizen or permanent resident. Alternatively, if the child lives in Australia continuously for ten years, they may become eligible for citizenship through residency. These policies illustrate a global trend toward limiting automatic citizenship by birth to discourage birth tourism.
In the United States, Section 1 of the Citizenship Clause of the Fourteenth Amendment to the Constitution prescribes that “All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside.” The Trump administration has launched a policy and legal challenge to the longstanding interpretation that every person born in the US is automatically a citizen. It argues that the current interpretation incentivizes illegal immigration and results in widespread abuse of the system.
On January 20, 2025, President Donald Trump issued Executive Order 14156: Protecting the Meaning and Value of American Citizenship, aimed at ending birthright citizenship for children of undocumented migrants and those with lawful but temporary status in the United States. The executive order stated that the Fourteenth Amendment’s Citizenship Clause “rightly repudiated” the Supreme Court’s “shameful decision” in the Dred Scott v. Sandford case, which dealt with the denial of citizenship to black former slaves. The administration argues that the Fourteenth Amendment “has never been interpreted to extend citizenship universally to anyone born within the United States.” The executive order claims that the Fourteenth Amendment has “always excluded from birthright citizenship persons who were born in the United States but not subject to the jurisdiction thereof.” The order outlines two categories of individuals that it claims are not subject to United States jurisdiction and thus not automatically entitled to citizenship: a child of an undocumented mother and father who are not citizens or lawful permanent residents; and a child of a mother who is a temporary visitor and of a father who is not a citizen or lawful permanent resident. The executive order attempts to make ancestry a criterion for automatic citizenship. It requires children born on US soil to have at least one parent who has US citizenship or lawful permanent residency.
On June 27, 2025, the US Supreme Court in Trump v. CASA, Inc. held that lower federal courts exceed their constitutional authority when issuing broad, nationwide injunctions to prevent the Trump administration from enforcing the executive order. Such relief should be limited to the specific plaintiffs involved in the case. The Court did not address whether the order is constitutional, and that will be decided in the future. However, this decision removes a major legal obstacle, allowing the administration to enforce the policy in areas not covered by narrower injunctions. Since the order could affect over 150,000 newborns each year, future decisions on the merits of the order are still an especially important legal and social issue.
In addition to the executive order, the Ban Birth Tourism Act – introduced in the United States Congress in May 2025 – aims to prevent women from entering the country on visitor visas solely to give birth, citing an annual 33,000 births to tourist mothers. Simultaneously, the State Department instructed US consulates abroad to deny visas to applicants suspected of “birth tourism,” reinforcing a sharp policy pivot.
In light of these developments, Canada should be wary. It may see an increase in birth tourism as expectant mothers look for alternative destinations where their children can acquire citizenship by birth.
Canadian immigration law does not prevent women from entering the country on a visitor visa to give birth. The Immigration and Refugee Protection Act (IRPA) and the associated regulations do not include any provisions that allow immigration officials or Canada Border Services officers to deny visas or entry based on pregnancy. Section 22 of the IRPA, which deals with temporary residents, could be amended. However, making changes to regulations or policy would be difficult and could lead to inconsistent decisions and a flurry of litigation. For example, adding questions about pregnancy to visa application forms or allowing officers to request pregnancy tests in certain high-risk cases could result in legal challenges on the grounds of privacy and discrimination.
In a 2019 Angus Reid Institute survey, 64 per cent of Canadians said they would support changing the law to stop granting citizenship to babies born in Canada to parents who are only on tourist visas. One of the most effective solutions would be to amend Section 3(1)(a) of the Citizenship Act, making it mandatory that at least one parent be a Canadian citizen or permanent resident for a child born in Canada to automatically receive citizenship. Such a model would align with citizenship legislation in countries like the UK, Germany, and Australia, where jus soli is conditional on parental status. Making this change would close the current loophole that allows birth tourism, without placing additional pressure on visa officers or requiring new restrictions on tourist visas. It would retain Canada’s inclusive citizenship framework while aligning with practices in other democratic nations.
Canada currently lacks a proper and consistent system for collecting data on non-resident births. This gap poses challenges in understanding the scale and impact of birth tourism. Since health care is under provincial jurisdiction, the responsibility for tracking and managing such data falls primarily on the provinces. However, there is no national framework or requirement for provinces or hospitals to report the number of births by non-residents, leading to fragmented and incomplete information across the country. One notable example is BC’s Richmond Hospital, which has become a well-known birth tourism destination. In the 2017–18 fiscal year alone, 22 per cent of all births at Richmond Hospital were to non-resident mothers. These births generated approximately $6.2 million in maternity fees, out of which $1.1 million remained unpaid. This example highlights not only the prevalence of the practice but also the financial burden it places on the provincial health care programs. To better address the issue, provinces should implement more robust data collection practices. Information should include the mother’s residency or visa status, the total cost of care provided, payment outcomes (including outstanding balances), and any necessary medical follow-ups.
Reliable and transparent data is essential for policymakers to accurately assess the scope of birth tourism and develop effective responses. Provinces should strengthen data collection practices and consider introducing policies that require security deposits or proof of adequate medical insurance coverage for expectant mothers who are not covered by provincial healthcare plans.
Canada does not currently record the immigration or residency status of parents on birth certificates, making it difficult to determine how many children are born to non-resident or temporary resident parents. Including this information at the time of birth registration would significantly improve data accuracy and support more informed policy decisions. By improving data collection, increasing transparency, and adopting preventive financial safeguards, provinces can more effectively manage the challenges posed by birth tourism, and the federal government can implement legislative reforms to deal with the problem.
Sergio R. Karas, principal of Karas Immigration Law Professional Corporation, is a certified specialist in Canadian citizenship and immigration law by the Law Society of Ontario. He is co-chair of the ABA International Law Section Immigration and Naturalization Committee, past chair of the Ontario Bar Association Citizenship and Immigration Section, past chair of the International Bar Association Immigration and Nationality Committee, and a fellow of the American Bar Foundation. He can be reached at [email protected]. The author is grateful for the contribution to this article by Jhanvi Katariya, student-at-law.
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