Implications of Federal Policy Decisions Affecting Hikvision Canada
Municipal public safety camera programs across Canada are entering a modernization cycle as aging surveillance infrastructure is replaced with networked IP-based systems.
At the same time, recent federal policy decisions have changed the governance and risk landscape surrounding certain surveillance vendors operating in Canada. On June 27, 2025, the Government of Canada ordered Hikvision Canada to wind up and cease operations. At the same time, Hikvision equipment has long been restricted in U.S. federal procurements under Section 889 of the National Defense Authorization Act.
These developments raise broader governance considerations for municipalities operating public safety camera systems, particularly where infrastructure investments are expected to operate for many years.
For municipalities evaluating surveillance infrastructure decisions, four primary areas of risk are relevant.
| Risk Area | Why it Matters |
| Vendor continuity | The Government of Canada has ordered Hikvision Canada to wind down its operations. While legal proceedings continue, the order creates uncertainty around long-term vendor support, firmware updates, warranty services, and parts availability for systems expected to operate for many years. |
| Public sector procurement alignment | Federal national security decisions often influence procurement standards across the broader Canadian public sector. Municipal infrastructure projects typically seek to align with federal guidance and avoid technologies that may later become restricted or unsupported in government environments. |
| Security lifecycle management | Public safety camera systems are networked infrastructure that require ongoing patching, firmware updates, and vulnerability management. Where vendor stability or long-term support is uncertain, maintaining appropriate cybersecurity and lifecycle management becomes more difficult for municipal operators. |
| Public trust and governance | Municipal surveillance programs rely on public legitimacy. National security concerns, privacy expectations, and international scrutiny around surveillance technologies can increase public sensitivity to vendor choices in public-space monitoring systems. |
Municipal governments do not necessarily need to undertake immediate replacement of existing Hikvision systems. However, expanding surveillance systems using equipment supplied by vendors whose Canadian operations are under regulatory uncertainty may introduce avoidable governance and lifecycle risks.
With product availability increasingly uncertain following the federal wind-up order, municipalities should begin developing medium-term transition plans now, while existing systems remain functional and transitions can proceed on a planned rather than forced timeline
Many municipalities across Canada operate public safety camera programs designed to support policing, public safety, and community security objectives.
Programs typically incorporate safeguards intended to balance security objectives with privacy expectations. Common characteristics include:
Public safety camera programs often expand gradually over time as municipalities add cameras to address emerging safety concerns.
Because these systems operate for many years, vendor and platform choices made during expansion phases can shape system architecture, cybersecurity risk, and operational costs for a decade or more.
Canadian Federal Action
On June 27, 2025, the Government of Canada ordered the wind-up of the Canadian business carried on by Hikvision Canada, Inc.[1] – a decision that is currently being challenged through judicial review.
Public reporting indicates the federal government also moved to ensure that federal departments, agencies, and Crown corporations do not use or purchase Hikvision equipment[2], and that federal properties will be reviewed to ensure legacy equipment is not used going forward. Hikvision publicly confirmed it received the order requiring it to cease operations in Canada and begin winding down its Canadian business[3].
Legal Status and Ongoing Court Proceedings
Hikvision Canada has challenged the federal order through a judicial review in the Federal Court of Canada. The company sought a stay that would allow its Canadian operations to continue while the case was heard. In September 2025, the Court dismissed the request to suspend the shutdown order, meaning the federal order directing the wind-down of Hikvision Canada remains in effect while the broader legal challenge proceeds. The final outcome of the judicial review has not yet been determined, and the case continues to move through the courts.[4]
Even without an explicit municipal prohibition, federal national-security determinations often act as policy signals for other public-sector organizations making infrastructure procurement decisions. For public safety systems with high visibility and long operational lifecycles, relying on a vendor under a federal wind-up order introduces avoidable governance and continuity risks.
U.S. Procurement Standards
The United States has restricted Hikvision equipment through Section 889 of the National Defense Authorization Act (NDAA).[5] The regulation prohibits U.S. federal agencies from procuring certain telecommunications and video surveillance equipment, including products produced by Hikvision. It also restricts federal agencies from contracting with entities that rely on covered equipment as a substantial component of their systems.
The U.S. Department of Commerce also added Hikvision to the Entity List in 2019 citing involvement in human rights abuses related to surveillance in Xinjiang.[6]
While these restrictions apply specifically to U.S. federal procurement, the concept of “NDAA-compliant equipment” has increasingly become a shorthand requirement in North American public-sector RFPs and supply-chain standards.
3. Lifecycle and Vendor Continuity Risks
Despite the federal wind-up order, Hikvision products may still appear available through Canadian retail channels.
However, the more important issue for municipal infrastructure is lifecycle support, including:
Public reporting indicates Hikvision Canada was directed to cancel sales orders and terminate marketing and after-sales support during the wind-down period.
For infrastructure expected to operate for many years, the key question becomes whether long-term vendor support can be relied upon.
Public safety camera systems are networked IoT devices. Canadian cybersecurity guidance notes that IoT devices, including networked surveillance cameras, can present risks if security controls or patch management processes are inadequate.[7]
Past vulnerabilities in Hikvision products illustrate the importance of vendor patching capability. For example, a critical vulnerability identified as CVE-2021-36260 allowed command injection on certain Hikvision devices.[8]
It is important to note that vulnerabilities occur across all major technology vendors; the key risk consideration for public infrastructure operators is not whether vulnerabilities exist, but whether the manufacturer can reliably provide long-term security patches, firmware updates, and support throughout the operational life of the system.
Where vendor continuity is uncertain, patch management and security assurance become significantly more difficult.
Public safety camera programs must maintain public legitimacy. Canadian legal guidance on municipal video surveillance emphasizes the need for clear governance policies, transparency, and proportional use of surveillance technologies in public spaces.[9]
Maintaining public trust requires careful vendor governance as well as strong operational policies.
Municipal infrastructure systems are typically planned and maintained over multi-year lifecycles. Procurement decisions made during expansion phases can shape system architecture and vendor dependencies for many years.
In situations where a vendor’s regulatory status, long-term support capacity, or supply-chain stability is uncertain, public-sector risk management practices generally favor avoiding new dependencies while maintaining existing operations.
This approach allows municipalities to protect service continuity while reducing the likelihood of future emergency replacements or procurement constraints.
Municipalities operating public safety camera programs must balance security objectives, cybersecurity risk, procurement governance, and public trust.
Recent federal policy decisions regarding Hikvision Canada highlight the importance of vendor stability and long-term lifecycle support when selecting surveillance infrastructure.
For municipalities evaluating surveillance infrastructure decisions, careful vendor governance and gradual modernization strategies can help ensure systems remain secure, supportable, and publicly accountable over their operational lifespan.
References
[1] Government of Canada. National Security Decisions under the Investment Canada Act – Order Respecting Hikvision Canada Inc.
https://ised-isde.canada.ca/site/investment-canada-act/en/national-security-decisions
[2] Global News / Canadian Press. Ottawa orders Hikvision Canada to close operations over national security concerns.
https://globalnews.ca/news/11266032/ottawa-orders-chinese-tech-firm-hikvision-close-canadian-operations-national-security/
[3] Norton Rose Fulbright. Hikvision challenges government’s national security order under the Investment Canada Act.
https://www.nortonrosefulbright.com/en/knowledge/publications/c1c86f5d/hikvision-challenges-governments-national-security-order-under
[4] Reuters. “China’s Hikvision to challenge Canadian court endorsement of shutdown order.”
September 23, 2025.
[5] U.S. Congress. National Defense Authorization Act for Fiscal Year 2019,
Public Law 115-232, Section 889. https://www.govinfo.gov/content/pkg/PLAW-115publ232/pdf/PLAW-115publ232.pdf
[6] U.S. Department of Commerce – Bureau of Industry and Security. Addition of Certain Entities to the Entity List.
https://www.federalregister.gov/documents/2019/10/09/2019-22210/addition-of-certain-entities-to-the-entity-list
[7] Canadian Centre for Cyber Security.
“Internet of Things (IoT) Security (ITSAP.00.012).”
Communications Security Establishment, Government of Canada.
https://www.cyber.gc.ca/en/guidance/internet-things-iot-security-itsap00012
[8] National Vulnerability Database. CVE-2021-36260 – Hikvision Command Injection Vulnerability.
https://nvd.nist.gov/vuln/detail/CVE-2021-36260
[9] 15 McInnes Cooper.
“Municipal Public Video Surveillance: 5 Key Steps to Legal Compliance.”