The House

Canada doesn't have many options when it comes to China: former CSIS head

There are few safe options for Canada in dealing with China, the former head of Canada's spy agency says.
A poster displayed during a news conference at the Department of Justice in Washington, Thursday, Dec. 20, 2018, shows two Chinese citizens suspected to be with the group APT 10 carrying out an extensive hacking campaign to steal data from U.S. companies. The Justice Department is charging two Chinese citizens with carrying out an extensive hacking campaign to steal data from U.S. companies. An indictment was unsealed Thursday against Zhu Hua and Zhang Shillong. Court papers filed in Manhattan federal court allege the hackers were able to breach the computers of more than 45 entities in 12 states. (Manuel Balce Cenata/Associated Press)

There are few safe options for Canada in dealing with China, the former head of Canada's spy agency says.

Ward Elcock told The House that claims accusing two Chinese nationals of waging an extensive, state-sponsored hacking campaign against government agencies — including some in Canada — are not surprising.

This week, American prosecutors said Zhu Hua and Zhang Shilong were acting on behalf of China's top intelligence agency to gather information from several countries.

Elcock, the former CSIS chief, said the public is becoming more aware of Chinese espionage — but "this is not new news."

Meng Wanzhou, ​chief financial officer of the Chinese telecommunications giant Huawei, was arrested by Canadian authorities in Vancouver earlier this month on an extradition request from the U.S., which accuses her of violating sanctions on Iran.

China, which has heatedly protested Meng's arrest, has since detained two Canadians in what many have interpreted as acts of retaliation. The country has offered only vague explanations for the detentions, saying only that Michael Spavor and Michael Kovrig are suspected of engaging in activities that endangered China's security. China has not drawn a direct link between the detentions and Meng's arrest.

While Canada works its way through these murky diplomatic waters, Elcock said, it doesn't have a lot of options that would satisfy the Chinese.

He said the Trudeau government's messaging on Meng and the detentions suggests it's trying to avoid a big battle with China.

Public Safety Minister Ralph Goodale used softer language than the U.S. Deputy Attorney General Rod Rosenstein in discussing the situation.

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Rosenstein called China's actions "stealing commercial information" and "state sponsored criminal activity."

But the increasing number of intelligence incidents involving China likely is quietly informing the government's approach, Elcock said.

"It is conditioning how the government responds, to some extent," he told host Chris Hall.

The question, he said, is how far the government wants to take its relationship with a country that doesn't respect the rule of law.

Canada has been attempting to broaden trade ties with China for some time, with little success. Elcock said Meng's extradition will further weaken those bonds.

"I think the arrest of the CFO has put that certainly in jeopardy," he said.