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Feds block board appointment to Quebec laser firm bought by Chinese company
CorActive and its Chinese parent say the refusal was unreasonable and ask Federal Court to quash it after $11 million in post-acquisition investment.
- In June, Industry Minister Melanie Joly refused to approve Xiaokai 'Denver' Zeng's appointment to CorActive High Tech Inc.'s board, citing national security concerns tied to the company's 2017 acquisition by Han's Laser Technology Group.
- The 2017 acquisition deal included undertakings to protect CorActive's 'specialty fibres' technology, mandating background checks on prospective board members and establishing legal authority for the government to restrict foreign national appointments.
- CorActive, Han's, and Zeng filed a Federal Court application on Monday alleging the refusal was 'substantively unreasonable,' arguing Zeng passed 'rigorous' screening by the Federal Bureau of Investigation and U.S. Department of Homeland Security.
- CorActive claims appointing Zeng will help the firm 'remain competitive' amid declining sales and staff turnover, with Han's Laser having invested $11 million into the company since 2017.
- Innovation, Science and Economic Development Canada stated the government 'welcomes foreign direct investment that benefits Canada,' though officials declined to comment on this transaction; CorActive received U.S. Department of Defense contracts in 2012 and 2014.
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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 ma…
·New York, United States
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Melanie Joly's decision is unjustified, according to the company
·Montreal, Canada
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The Toronto Star+28 Reposted by 28 other sources
Feds block board appointment to Quebec laser firm bought by Chinese company
A Quebec-based laser firm that was bought by a Chinese company says the federal government has wrongfully refused to allow an American executive onto its board over concerns that its
·Toronto, Canada
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Total News Sources31
Leaning Left23Leaning Right1Center6Last UpdatedBias Distribution77% Left
Bias Distribution
- 77% of the sources lean Left
77% Left
L 77%
C 20%
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