Bill S-234 explained in plain English
An Act to amend the Investment Canada Act (mandatory national security review of investments by foreign state-owned enterprises)
Federal Parliament bill summary, status, timeline, sponsor, votes, and official sources.
At a glance
Official Parliament of Canada snapshot for 43rd Parliament, 2nd Session. MP vote breakdowns appear when the House of Commons publishes a recorded division export for that bill. Senate and House stage details include official debate/sitting links when LEGISinfo publishes them.
Our plain-language take, written for civic education.
Source: By PoliticalData.ca
Bill S-234 makes foreign investments by state-owned enterprises subject to mandatory national security review under the Investment Canada Act.
Bill S-234 amends the Investment Canada Act to create a mandatory national security review process for investments made by foreign state-owned enterprises. Currently, the Investment Canada Act allows the Minister of Innovation, Science and Economic Development to review foreign investments if the Minister has reasonable grounds to believe the investment could harm national security. This bill makes it so that investments by foreign state-owned enterprises must be reviewed automatically. The bill works by adding a new requirement: if the Minister determines (in consultation with the Minister of Public Safety and Emergency Preparedness) that an investment is being made by a state-owned enterprise, the Minister must make an order for review within a prescribed time period. This triggers the national security review process regardless of whether the Minister initially suspected a national security concern. The bill also adjusts the timelines for the review process. It modifies when the Minister's deadline to make decisions expires, depending on which stage of the review process the investment is in. These adjustments account for the new mandatory review requirement for state-owned enterprises. Finally, the bill clarifies that regulations can set different time periods for reviews depending on the type of investment (including whether it involves a state-owned enterprise or not).
- Adds a mandatory national security review for any investment made or proposed by a foreign state-owned enterprise, to be triggered when the Minister determines this is the case (in consultation with the Minister of Public Safety and Emergency Preparedness)
- Requires the Minister to make a review order within a prescribed time period if a state-owned enterprise investment is identified
- Updates timeline provisions in section 21 of the Investment Canada Act to account for the new mandatory state-owned enterprise review process, including how deadlines are extended at various stages of review
- Modifies the notice provisions in section 25.2 to reflect that reviews may be initiated for investments by state-owned enterprises under the new subsection 25.3(1.2)
- Clarifies that regulations can set different review periods depending on whether the investment involves a state-owned enterprise
- Ensures decisions and orders under the Investment Canada Act remain final and binding subject only to judicial review
- Foreign investors (non-Canadians) making or proposing investments in Canada
- Foreign state-owned enterprises and entities controlled by foreign governments that invest in Canadian businesses or entities
- The Minister of Innovation, Science and Economic Development (responsible for administering the Investment Canada Act and making review determinations)
- The Minister of Public Safety and Emergency Preparedness (who must be consulted before determining whether an investment is by a state-owned enterprise)
- The Governor in Council (whose decisions on referred investments remain final and binding)
- Canadian businesses and entities being acquired or invested in by foreign state-owned enterprises
- Persons or entities from which Canadian businesses are being acquired (who receive notice of review orders)
- The Minister must consult with the Minister of Public Safety and Emergency Preparedness before determining whether an investment is by a state-owned enterprise (subsection 25.3(1.1))
- The Minister must make a review order within the prescribed time period if a state-owned enterprise investment is identified (subsection 25.3(1.2))
- The Minister must send notice without delay after a review order is made, advising the investor and acquisition targets of their right to make representations (subsection 25.3(2))
- Non-Canadian investors cannot implement an investment after receiving a notice under subsection 25.2(1) unless they receive notice that no review order will be made or receive approval (subsection 25.2(2))
- Investors have the right to make representations to the Minister during the review process (subsection 25.3(2))
- Decisions and orders are final and binding, except for judicial review under the Federal Courts Act (section 25.6)
- The bill does not specify a commencement date; typical legislation comes into force upon Royal Assent unless otherwise stated
- The actual time periods for reviews ('prescribed periods') are to be set by regulation, which the Minister will develop; the bill does not specify these periods
- The bill does not specify any tax impacts
- Potential indirect economic impacts on investors subject to mandatory review, such as delays in investment implementation pending completion of review, but these are not quantified in the bill
- The bill does not specify penalties for violations
- Enforcement would occur through the Minister's refusal to authorize implementation or through orders restricting or prohibiting the investment
- Decisions and orders are subject only to judicial review under the Federal Courts Act, meaning they cannot be appealed through regular court appeals
- The bill does not define what constitutes a 'state-owned enterprise' — this definition must come from regulations or existing Canadian law not quoted in the bill text
- The specific 'prescribed periods' for reviews are not set in the bill and will be established later through regulation
- The bill does not explain what factors the Minister will consider when determining whether an investment 'could be injurious to national security'
- The bill does not specify what 'reasonable grounds to believe' means in practical terms
- The consultation requirement with the Minister of Public Safety and Emergency Preparedness is mentioned but the bill does not specify what this consultation process will entail or how disagreements would be resolved
- The bill does not provide timelines for how long the Governor in Council has to decide on referred investments
- The bill does not specify what 'representations' investors may make or how these will be considered in the review process
- The full impact on investment timelines is unclear because the specific prescribed periods are not included in the bill
Updated timeline for when the Minister's deadline expires when a national security review notice is issued for an investment; now refers to both subsection 25.3(1) and the new 25.3(1.2) mandatory review for state-owned enterprises
Source: Clause 1(1)
Updated timeline provisions to account for mandatory state-owned enterprise reviews under new subsection 25.3(1.2)
Source: Clause 1(2)
Updated timeline provisions to reference the new subsection 25.3(1.2) mandatory review for state-owned enterprises
Source: Clause 1(3)
Updated timeline provisions to account for mandatory state-owned enterprise reviews under subsection 25.3(1.2)
Source: Clause 1(4)
Updated timeline provisions to refer to both subsection 25.3(1) and the new 25.3(1.2) mandatory review for state-owned enterprises
Source: Clause 1(5)
Updated timeline provisions to account for mandatory state-owned enterprise reviews under subsection 25.3(1.2)
Source: Clause 1(6)
Updated timeline provisions to refer to both subsection 25.3(1) and the new 25.3(1.2) mandatory review for state-owned enterprises
Source: Clause 1(7)
Broadens the Minister's authority to issue a notice for potential review to include investments that are reviewable under the new mandatory state-owned enterprise review provision (subsection 25.3(1.1)), not just those that could be injurious to national security
Source: Clause 2(1)
Updates reference to indicate that investors may receive notice that no order will be made under subsection 25.3(1) or the new 25.3(1.2) mandatory review for state-owned enterprises
Source: Clause 2(2)
Updates reference to indicate that the Minister may send notice within the prescribed period that no order will be made under subsection 25.3(1) or the new 25.3(1.2) mandatory review for state-owned enterprises
Source: Clause 2(3)
Creates a new mandatory review requirement: an investment shall be reviewed if the Minister determines (after consulting with the Minister of Public Safety and Emergency Preparedness) that the investment is being made or proposed by a state-owned enterprise
Source: Clause 3
Creates a new requirement that if the Minister makes a mandatory state-owned enterprise determination under subsection 25.3(1.1), the Minister must make a review order within the prescribed time period
Source: Clause 3
Clarifies that the Minister must send notice without delay when an order is made under either subsection 25.3(1) or the new 25.3(1.2), and advises investors of their right to make representations
Source: Clause 3
Clarifies that decisions and orders of the Minister (as well as the Governor in Council) under this Part are final and binding subject only to judicial review under the Federal Courts Act
Source: Clause 4
Expands the regulation-making power to allow different prescribed time periods to be set depending on whether an investment involves a state-owned enterprise (subsection 25.3(1.2)) in addition to the existing categories of investments
Source: Clause 5
Generated using AI from official bill text. Not legal advice. It is written by PoliticalData.ca for civic education, automatically checked and spot-reviewed before publishing.
Official textParliamentary Process
Bill S-234 completed its First Reading in the Senate on May 26, 2021, and has since moved to Second Reading, with a debate taking place on June 22, 2021.
This artifact describes the initial procedural step for Bill S-234 in the Senate. The bill was introduced (First Reading) on May 26, 2021. The text also notes that the bill is currently at the Second Reading stage, and a debate occurred on June 22, 2021, which included a speech from the sponsor. It also references a similar bill from a previous parliamentary session.
On May 26, 2021, Bill S-234 was introduced and received first reading in the Senate, and debate continued on Bill S-4.
This document details a sitting of the Senate on May 26, 2021. During Routine Proceedings, Bill S-234, "An Act to amend the Investment Canada Act (mandatory national security review of investments by foreign state-owned enterprises)," was introduced and received its first reading. The bill was then placed on the Order of the Day for second reading at a future date. The sitting also included Senators' Statements on various topics, Question Period where senators asked questions of the Government Representative on issues like trade agreements, COVID-19 vaccine access, foreign investment, and more, and the continuation of debate on Bill S-4, concerning amendments to the Parliament of Canada Act, which was read a second time on division. The text does not contain the full text of Bill S-234.
Bill S-234, concerning mandatory national security reviews of investments by foreign state-owned enterprises, is currently undergoing debate at the second reading stage in the Senate.
The Senate is currently considering Bill S-234 at its second reading stage. This stage involves debate on the bill's general principles. The latest activity recorded is the sponsor's speech on June 22, 2021. The bill was first read in the Senate on May 26, 2021.
On June 22, 2021, the Senate conducted routine proceedings, addressed questions, and continued debates on various bills and motions, including the adjournment of the debate on Bill S-234 regarding amendments to the Investment Canada Act.
On June 22, 2021, the Senate was engaged in various procedural matters and debates. The Senate heard senators' statements on topics including the impact of COVID-19 on proceedings, the academic year-end, National Indigenous Peoples Day, Quebec's National Holiday, and the prevention of violence against women. Routine proceedings included the tabling of committee reports and the first reading of a bill. Question Period addressed a range of government actions and policies, including the Canada Disability Benefit, the Canada Emergency Student Benefit, and the national reopening plan. The Senate then moved to Orders of the Day, which included continuing debate on the Speech from the Throne and debating several bills at various stages, including Bill S-234, An Act to amend the Investment Canada Act. The debate on Bill S-234 was adjourned.
In a speech during the Senate's second reading debate, Senator Ngo argued for mandatory national security reviews of foreign state-owned enterprise investments in Canada to strengthen national security.
During the Senate's second reading debate on Bill S-234, Senator Thanh Hai Ngo, the bill's sponsor, delivered a speech. He explained that the bill aims to amend the Investment Canada Act to make national security reviews mandatory for investments by foreign state-owned enterprises. He argued that current discretionary reviews are insufficient and leave Canada vulnerable to threats from foreign state-owned enterprises, particularly those linked to countries with concerning human rights records or opaque governance. Senator Ngo provided several examples of past investments that he believes warranted mandatory national security reviews. He emphasized that the bill seeks to strengthen Canada's investment review process without removing the final decision-making authority of the Governor-in-Council. The debate on this bill was adjourned, meaning it was not completed on this date.
Bill S-234, concerning mandatory national security reviews of investments by foreign state-owned enterprises, has not yet reached the Third Reading stage in the Senate, with its latest recorded activity being a debate during Second Reading.
The Senate has not yet reached the Third Reading stage for Bill S-234. The latest activity recorded was a debate at the Second Reading stage on June 22, 2021. The bill was first read on May 26, 2021, and debated at Second Reading on June 22, 2021. A similar bill, S-257, was introduced in a previous Parliament.
Bill S-234, concerning mandatory national security reviews of foreign state-owned enterprise investments, has completed First Reading in the House of Commons and is currently undergoing debate at Second Reading in the Senate.
This artifact describes the legislative process for Bill S-234. It indicates that the bill has reached its First Reading stage in the House of Commons but has not yet proceeded further in that chamber. The bill is currently at the Second Reading stage in the Senate, where debate has occurred.
Bill S-234, concerning mandatory national security review of foreign state-owned enterprise investments, has not yet reached its second reading stage in the House of Commons, though it has proceeded to second reading in the Senate.
The provided information describes the procedural status of Bill S-234 in the House of Commons. It indicates that the bill has not yet reached the 'House of Commons Second reading' stage. The current overall status of the bill is 'At second reading in the Senate', and the latest activity noted was a debate at second reading in the Senate on Tuesday, June 22, 2021. The bill was first read on Wednesday, May 26, 2021.
Bill S-234 has not yet proceeded to committee stage in the House of Commons, with its current procedural status being second reading in the Senate.
This record indicates that Bill S-234, concerning amendments to the Investment Canada Act regarding national security reviews of foreign state-owned enterprise investments, has not yet reached the 'Consideration in committee' stage in the House of Commons. The bill's current status is 'At second reading in the Senate', with the latest activity being a debate at this stage on June 22, 2021. It was first read on May 26, 2021, and had its second reading debate on June 22, 2021, in the Senate. A similar bill, S-257, was introduced in a previous Parliament.
Bill S-234, concerning mandatory national security reviews of foreign state-owned enterprise investments, has reached the Report stage in the House of Commons without activity, while currently being debated at second reading in the Senate.
This artifact describes the legislative stage of Bill S-234 in the House of Commons. It indicates that the bill has reached the Report stage but has not yet had any activity at this stage. The bill's current status is at second reading in the Senate. The last recorded activity for this bill was a debate at second reading in the Senate on June 22, 2021. It also notes that a similar bill, S-257, was introduced in a previous Parliament.
Bill S-234, aiming to amend the Investment Canada Act for mandatory national security reviews of foreign state-owned enterprise investments, has not yet reached the third reading in the House of Commons and is currently at second reading in the Senate.
This record indicates that Bill S-234, concerning amendments to the Investment Canada Act regarding national security reviews of foreign state-owned enterprise investments, has not yet reached the third reading stage in the House of Commons. The bill's current status is at second reading in the Senate. The latest activity noted was a debate at second reading in the Senate on Tuesday, June 22, 2021. The bill had its first reading on Wednesday, May 26, 2021.
Debate and sitting links point to official parliamentary sources when LEGISinfo publishes them. Any plain-language discussion summaries should be generated from those official texts and reviewed before public display.
Vote Summary
This bill is still active. We only show vote counts after the legislature publishes a recorded division.
No published representative vote breakdown
This bill is still moving through the process. When a recorded division is published, representative positions can be listed here.
Official sources
Status, sponsor, votes, and timeline on this page are drawn from these official legislative sources and public records. Each summary above is attributed to its own source.
How this data is sourced