Science and Research

The House of Commons Standing Committee on Science and Research met to study the implications of the Canada-China preliminary joint arrangement on Canada's electric vehicle (EV) sector. Witnesses included Guy Saint-Jacques, former Ambassador to China; Michael Kovrig, founder of the Global Network for Strategic Effects; Joanna Kyriazis, Director of Policy & Strategy at Clean Energy Canada; and Philippe Dufresne, Privacy Commissioner of Canada.

Guy Saint-Jacques argued that China's "Made in China 2025" strategy has achieved 84% of its targets through subsidies and technology theft, creating industrial overcapacity that fuels cheap EV exports. He said the previous government's 100% tariff on Chinese EVs was ill-advised and that the current deal allowing 49,000 Chinese EVs annually is sensible, as it can reduce emissions and attract investment. He recommended imposing Canadian content requirements on Chinese manufacturers, similar to what China required of GM Canada, and urged the government to work with allies to open Chinese markets, oppose dumping, prevent technology theft, and clarify rules on Chinese investment.

Michael Kovrig warned that opening Canada's market to Chinese EVs is a tactical gamble risking deep entanglement with a totalitarian state, as Chinese EVs are backed by over $300 billion in state subsidies and follow a pattern of flooding markets, consolidating share, and weaponizing control for geopolitical leverage. He disagreed with Saint-Jacques, arguing that quotas do not address risks from connected vehicle software or consumer loyalty that could pressure quota expansion, and that Chinese automakers are unlikely to transfer technology. He recommended keeping market access limited, conditional, and reversible; conducting WTO-compliant anti-subsidy investigations; counting CKD-assembled vehicles toward quotas; protecting domestic battery and critical minerals capacity; and aligning with reliable partners on trade, forced labour bans, and cybersecurity standards.

Joanna Kyriazis argued that the Canada-China EV deal strikes a balance between consumer affordability and industrial competitiveness, noting that Canadians can save $23,000 to $32,000 over 10 years by choosing an EV and that the EU, with lower tariffs on Chinese EVs, is the fastest-growing EV market. She said the deal creates an affordable EV segment and incentivizes Chinese, Korean, and German firms to build in Canada, employing workers and using Canadian critical minerals. She disagreed with Kovrig's characterization of forced labour as a key factor in Chinese competitiveness, stating that Canada's legal framework already bans forced labour and that a targeted approach is needed rather than banning all Chinese EVs.

Philippe Dufresne highlighted that connected vehicles collect large volumes of personal data, including location and driving behaviour, which can be transferred to foreign jurisdictions where different legal frameworks increase risks of access by foreign authorities. He noted that PIPEDA lacks explicit rules on transborder data flows and recommended amendments requiring privacy impact assessments before data leaves Canada and tools like standard contractual clauses. He confirmed that his office has not been consulted by the government on this specific arrangement and that Canadians are likely not sufficiently informed about the scope of data collection by connected vehicles.

The committee heard questions from members, but no procedural debate, motions, or votes occurred during this meeting.