The company argued at a federal court hearing Wednesday that it will endure both reputational as well as financial damages if the government proceeds with the order. Justice Paul Crampton said he would make a decision as soon as possible considering the amount of public interest in the case. (The Logic)
Talking point: In August, the federal government asked the Canadian subsidiary of China Mobile, one of the largest mobile networks in the world, to either divest its stake or wind up its operations in Canada, citing national-security concerns. China Mobile International then filed for an appeal on Sept. 7 to challenge the decision. A 500-plus-page document was released shortly after Wednesday’s hearing revealing some of Ottawa’s specific concerns. An affidavit from Katherine Burke, director general of the Investment Review Branch at Innovation, Science and Economic Development Canada, described the China Mobile unit as a “state-owned enterprise subject to foreign government influence and control.” The legal spat comes amid recent tensions between Canada and China, with Ottawa’s long-awaited decision on whether to ban Huawei’s 5G equipment expected soon.