Transport and Internal Trade Minister Chrystia Freeland answers a question during the House of Commons session on Parliament Hill in Ottawa, Thursday, June 12, 2025. (Photo: THE CANADIAN PRESS/Sean Kilpatrick)
Canada’s Deputy Prime Minister and Transport Minister, Chrystia Freeland, has publicly expressed strong disappointment over BC Ferries' recent decision to award a shipbuilding contract to a Chinese state-owned company. This controversial move has stirred debate, especially given current global tensions and economic concerns involving China.
Freeland Expresses Dismay Over China Contract
In a formal letter to B.C. Public Safety Minister Mike Farnworth, Freeland shared their concerns about BC Ferries selecting China Merchants Industry Weihai Shipyards to build four new major vessels. The contract came after a five-year procurement process—none of which involved a single Canadian bid. The dollar value of the deal hasn’t been disclosed.
Freeland said the decision was especially troubling considering China’s "unjustified" tariffs on Canadian goods and the broader geopolitical climate. She emphasized that she was surprised BC Ferries wasn’t required to give preference to domestic suppliers, especially for such a major deal.
Security and Cyber Risks Highlighted
Freeland also called for BC Ferries to be fully transparent about any steps it plans to take to address potential security threats. Of particular concern were cybersecurity risks associated with using a Chinese state-owned builder.
She insisted that all possible security risks be thoroughly reviewed and that BC Ferries engage closely with both provincial and federal security experts.
BC Ferries Defends Its Decision
In its official response, BC Ferries said that the Chinese bid outperformed others by a “significant margin.” It also assured the public that critical systems related to safety and cybersecurity will be sourced independently and carefully vetted before the ferries are put into service.
Province of B.C. Responds Cautiously
A spokesperson for Farnworth said the letter is under review and that Farnworth had already spoken with Freeland about boosting B.C.’s shipbuilding capacity for future projects.
Premier David Eby also weighed in, stating that while the province supports growing its own shipbuilding sector, it would not interfere with BC Ferries’ operational decisions. He emphasized the importance of reliable ferry service for coastal communities.
It’s important to note that while BC Ferries operates independently, the province of British Columbia is its sole shareholder.
Freeland Demands Transparency on Federal Funds
Freeland’s letter also questioned whether federal funds could be indirectly supporting this offshore purchase. She demanded confirmation that no Canadian taxpayer money would go toward the Chinese-built ferries.
She reminded the province that Ottawa has historically provided significant support to BC Ferries, including $37.8 million in subsidies scheduled for 2025–26, $308 million in pandemic-related assistance, and a $75 million loan from the Canada Infrastructure Bank for environmentally friendly vessels.
Ottawa’s Message Is Clear
Freeland’s letter became public after she was questioned in Parliament by B.C. MP Dan Albas. She made it clear that federal financial assistance is intended strictly for ferry operations—not vessel purchases.
“I share the concern and frustration of other Members of this House,” Freeland said. “The federal government’s funding is for operations only, and must not be redirected elsewhere.”
