Canada Toughens Foreign Takeover Rules for AI, Space Companies

Canada will tighten its scrutiny of foreign investments in artificial intelligence, quantum computing and space technology as the government expands its power to stall and block deals for national security reasons.

Non-Canadian companies will have to give advance warning to the government before they invest in or acquire Canadian entities in those key technology sectors, Industry Minister Francois-Philippe Champagne said in an interview with Bloomberg. The tougher rules will also apply to investments in critical minerals and potentially other sectors, he said.

The idea is to buy the government time to conduct a national-security review before any transaction gets ...