Multiple technology-oriented businesses based in British Columbia were recently ordered to cease operations by the Canadian government.
The two companies, Bluevec Technologies and Pegauni Technology, were ordered to cease operations on grounds of national security concerns, according to a statement from the Government of Canada.
“In accordance with the Investment Canada Act, foreign investments are subject to review for national security concerns,” explained François-Philippe Champagne, Minister of Innovation, Science, and Industry.
Bluevec was developing wireless drone defence technology. Pegauni was working on wireless security products.
Red flags arose “as a result of the Government of Canada’s multi-step national security review process, which involves rigorous scrutiny by Canada’s national security and intelligence community.”
“The Government of Canada, through the Governor-in-Council, has ordered the dissolution of the Canadian businesses carried on by Bluvec Technologies Inc. and Pegauni Technology Inc., and for those companies to cease all operations in Canada,” stated Champagne.
The firms in question, both based in Burnaby, point to the same owner—Junfeng Jia—with offices less than a kilometre apart, according to a report from the Vancouver Sun. Both companies were established in 2018.
“While Canada continues to welcome foreign direct investment, we will act decisively when investments threaten our national security,” stated Champagne. “The government’s decisions are based on facts and evidence and on the advice of Canada’s security and intelligence community and other government partners.”
Notably, this is not Jia’s first controversy.
Bluevec was embroiled in a tense civil suit from 2021 through 2023 with Vancouver’s SkyCope Technologies, Cheryl Chan pointed out for the Sun, which saw SkyCope accuse Bluevec of stealing trade secrets through former employees (before launching Bluevec, Jia joined SkyCope as chief technology officer).
The battle did not end well for Jia, with the B.C. Supreme Court ordering Bluevec to pay $800,000 to SkyCope for misuse of confidential information and other concerning acts.
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