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Flying Whales: Ottawa fears China will spy

Investissement Québec made its $ 30 million investment in the Flying Whales company even if the controversial airship project is still blocked by Ottawa, which has been weighing up the risks of industrial espionage for a powerful Chinese partner for months.

Investissement Québec (IQ) recently confirmed to our Investigation Office that the amounts were disbursed, without specifying the date.

The state-owned company thus officially became a minority partner of the parent company Flying Whales SAS, headquartered in France, and of the Quebec subsidiary, which will notably carry out research and development for the airship production project.

IQ also confirmed that the Federal Ministry of Innovation, Science and Economic Development (ISDEC) has still not given its operating license to the Quebec subsidiary.

This procedure is mandatory for the start-up of any business that is not majority owned by Canadian capital, as is the case for Flying Whales Quebec. But the delays have multiplied. ((see text below).

Shareholding

IQ spokesperson Isabelle Fontaine said that the federal authorities are questioning the shareholding of the French parent company, which includes the Chinese state-owned company AVIC, a giant in the aeronautical sector. .

«[Un des contrôles] is the subject of a further study, which was expected given the shareholding of the parent company of Flying Whales Quebec, “said Ms. Fontaine.

In the United States, AVIC is in the crosshairs of the federal government, according to which the powerful conglomerate is controlled by the Chinese army.

The FBI has identified Chinese industrial espionage as a recurring threat to US national security.

IQ did not disclose the date on which its request for authorization was sent to ISDEC. The Investment Canada Act provides that a business can apply before making its investment or within 30 days of the transaction.

The office of the federal Minister of Industry, Navdeep Bains, explained that the authorization procedure, which is confidential, determines whether foreign investments are beneficial to the Canadian economy or not.

“The law also provides for the review of all foreign investment in order to preserve national security,” said councilor John Power, refusing to comment directly on the Flying Whales case.

Spying

In November, the Minister of the Economy, Pierre Fitzgibbon, was aware of the questions that could arise from the presence of AVIC.

“Of course we should look, as we mentioned, at the whole industrial espionage side,” he said.

However, he had ruled out any risk that the Chinese would recover technology from Quebec.

“The Chinese are not shareholders of the Quebec operation,” he said.

– With Jean-François Gibeault

Federal delays are increasing

Prolonged analysis of Ottawa hovers “a sword of Damocles” on the Quebec subsidiary of Flying Whales, recognizes the boss of the company.

Sébastien Bougon, president and chief executive officer of Flying Whales SAS, the parent company of the Quebec subsidiary, explains that the federal authorities have extended the initial 45-day deadline for examining the project “three or four times” , which also provides for the construction and operation of airships in Quebec.

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