Almost half of counter-espionage efforts in Canada target Chinese spies, the head of the Canadian Security Intelligence Service (CSIS) told a senate committee on Monday.
China ranked at the top of its list of more than a dozen countries believed to be spying on Canada, hoping to glean government, technological and corporate secrets, CSIS director Jim Judd said.
"China is at the top of our list of counter-intelligence targets and accounts for close to 50 percent of our counter-intelligence program," CSIS spokeswoman Barbara Campion quoted him as saying.
The senate committee is studying whether the country should build up more robust foreign intelligence gathering capabilities or even form a separate spy agency like the US CIA.
Judd's comments come as Canadian Foreign Affairs Minister Peter MacKay visits Beijing to try to improve relations, strained since the rise to power of Canada's Conservatives in January last year, over the jailing of Huseyin Celil, a Canadian citizen, stalled trade negotiations and Canada's failure to extradite Chinese fugitives.
Beijing also showed its displeasure at the Canada's decision to give honorary citizenship to Tibetan religious leader, the Dalai Lama, in November.
Last Wednesday, Ottawa asked to take part in WTO consultations on the application of intellectual property rights in China, after the US lodged a pair of complaints against Beijing at the beginning of the month.
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