Feds block board appointment to Quebec laser firm bought by Chinese company

A Quebec-based laser firm, CorActive High Tech Inc., which was acquired by a Chinese company in 2017, is challenging a federal government decision not to allow an American executive to join its board. The company, Han’s Laser Technology Group, claims the government's decision was "substantively unreasonable" and that it is refusing to approve the appointment of Xiaokai "Denver" Zeng, who heads Han’s U.S. subsidiary.

CorActive argues that Zeng's appointment would help the company remain competitive and safeguard jobs, as Han's Laser has invested $11 million in the firm since the acquisition. They also claim that Zeng's technology, which includes specialty fibers, is no longer sensitive and poses no risk to foreign militaries. The companies have filed a judicial review application, challenging the government's renewal of the undertaking for another year, stating that the risk of unauthorized technology transfers has ceased.