Privacy Commissioner says stronger data laws needed as Canada readies for Chinese EVs

OTTAWA – Canada’s privacy commissioner says he hopes laws around private sector data sharing are strengthened as the federal government prepares to open the domestic market to Chinese electric vehicles.

Speaking to the standing committee on science and research, Philippe Dufresne said Thursday he hopes that Parliament will modernize private sector privacy laws on a number of fronts, including with stronger enforcement abilities.

He says Canada lacks a cross-border data transfer rule regime that is as rigorous as jurisdictions such as Quebec and Europe.

Dufresne’s comments come after Canada reached a deal with China to dramatically lower tariffs on 49,000 EVs a year from the country, a move that has raised concerns about data privacy and surveillance in the heavily connected vehicles.

He says questions about data sharing are part of the modern car-buying experience, but that Canadians shouldn’t have to sacrifice privacy for a cheaper car.

The privacy commissioner says more can be done to make sure Canadians are aware of what data is being collected and shared, and that the agency has sponsored research to look at what automotive companies of all kinds are gathering.

“Generally speaking, I find that the consent and the information sharing for Canadians in terms of their privacy, in many cases, could be stronger,” said Dufresne.

“I am hoping that government and Parliament will modernize private sector privacy law on a number of fronts. We need stronger enforcement rules. It’s quite a notable gap that Canada, almost alone, we lack the ability for my office to issue orders, or to issue fines.”

The committee also heard from Michael Kovrig, one of two Canadians detained by Beijing for nearly three years and now a senior adviser on Asia for the International Crisis Group.

He said the EV deal with China risks creating deeper entanglement with an increasingly totalitarian state so strong limits need to be in place.

“Unless this trade is tightly constrained, it’s likely to undermine Canada’s industrial base,” he said.

“If we take a wrong turn, an entire industrial ecosystem could be hollowed out or captured, leading to a dependency that erodes economic security, sovereignty, and democratic values.”

He said that while he appreciates the aspirations to accelerate the green transition, lower prices and hedge against an unreliable Trump administration, but that getting closer with China is not a long-term route to achieving those goals. 

“The fundamental problem is that the Chinese Communist Party has an agenda that is hostile to Western democracies because it seeks to weaken our governance and our societies,” he said.

“Tilting toward China is a risky bet that is likely to carry more negative costs for Canada than the positive benefits that it could potentially bring.” 

Joanna Kyriazis, director of policy and strategy at Clean Energy Canada, said it’s possible to open the Canadian market to Chinese EVs while limiting the risks.

“It’s clear that this will be a delicate and sometimes difficult relationship to manage, with risks and opportunities that must be carefully weighed,” she said.

“But this is about being pro-Canada, realizing that setting Canada up to compete in the auto market of the future … will necessarily mean building something new.”

This report by The Canadian Press was first published April 16, 2026.