PRINCE RUPERT, B.C. – The decision to award a billion-dollar contract to build new vessels for BC Ferries to a state-owned shipyard in China is drawing sharp criticism, as it comes at a time when federal agencies are warning of increased cybersecurity threats from Beijing.
BC Ferries and the provincial government have defended the move, stating the Chinese bid was the most “cost-effective” and that Canadian shipyards did not submit bids, citing a lack of capacity to build the complex vessels. The province’s Premier has called the decision “not ideal” but stated that after a five-year procurement process, it is too late to reverse course.
The decision has created a clash between provincial and federal governments. The federal Finance Minister called the move “dismaying” and urged the province to ensure the vessels are cybersecure.
In response, the B.C. Premier has publicly told the federal government to “mind your own business,” arguing the decision falls under provincial jurisdiction.
This economic decision is taking place against a backdrop of serious national security warnings. On June 19, the Canadian Centre for Cyber Security issued a bulletin confirming that a Chinese state-sponsored group, known as “Salt Typhoon,” had successfully compromised critical Canadian telecommunications infrastructure earlier this year. Canada’s intelligence agency, CSIS, has also recently warned about Chinese espionage targeting technology supply chains.
Domestic shipbuilders and unions have argued that they have the capability to build the ferries in Canada but require clear government policy and investment to support the industry. They maintain that awarding such a critical infrastructure contract overseas undermines Canada’s domestic shipbuilding capacity.
The provincial government has pointed to hundreds of millions being spent on local refits and maintenance as evidence of their support for B.C. workers, but critics argue this is secondary to the main shipbuilding contract. The debate highlights a major conflict between economic pressures, industrial strategy, and national security concerns.
