Here's a story about electric vehicles, geopolitics, and a diplomat who spent three years in a Chinese prison. Michael Korvig, a former Canadian diplomat who was detained by Beijing from 2018 to 2021, stood up at a summit in Ottawa on Tuesday and delivered a warning: Canada's deal with China on electric vehicles could put the country on the back foot.
Korvig's concern is straightforward. He thinks Chinese companies could "drive out local competition and make Canada dependent on importing Chinese EVs." That's not just about cars—it's about technology. He pointed out that Chinese firms might bring in knockdown kits for assembly in Canada, which wouldn't develop Canada's own tech or supply chains. "They want to control the tech stack and then use control of that tech for geopolitical dominance and leverage," he said. In other words, it's not just an auto industry play; it's a power move.
Korvig isn't alone in his skepticism. Ontario Premier Doug Ford has slammed potential agreements between Stellantis NV (STLA) and China's Zhejiang Leapmotor Technology Co. Ltd., in which Stellantis owns a 20% stake. The deal would have Stellantis manufacturing Leapmotor EVs at its facility in Brampton, Ontario. Meanwhile, Pierre Poilievre, Canada's leader of the Official Opposition, has pushed for a U.S.-focused auto industry strategy, including exemptions from federal sales tax for Canadian-made vehicles. So there's a political divide forming over how to handle this.
And then there's the U.S. angle. Korvig's warnings echo concerns from President Donald Trump and the White House. The deal between Ottawa and Beijing could see over 49,000 EVs imported into Canada at a lower tariff rate, with the potential to expand that to 70,000 EVs. Trump's ambassador to Canada, Pete Hoekstra, has opposed Chinese-made EVs crossing the border into the U.S. and raised security concerns about Canada's tariff agreement with China. Trump himself called it one of the worst deals of all time and threatened to impose tariffs of over 100% on Canada if any agreements with China went through. So it's not just a Canadian issue—it's a North American one, with trade tensions simmering.
What's interesting here is how this blends economics with national security. Korvig's personal history—three years in Chinese detention—adds weight to his warnings, but the broader debate is about whether Canada should align more closely with U.S. interests or navigate its own path with China. With EVs becoming a key battleground in global trade, this isn't just about cars; it's about who controls the future of transportation technology.
