Spying case heightens China-Canada tensions

Spying case heightens China-Canada tensions

China's decision to investigate two Canadians for suspected spying highlights a sharp and unexpected deterioration in bilateral ties just months ahead of a trip by Canada's Prime Minister Stephen Harper to Beijing.

The detention of the couple, long-time residents in China who ran a coffee shop on the border with North Korea, could also make life tougher for the small group of Canadian government ministers who favor closer economic links with Beijing.

Chinese authorities are investigating the couple - Kevin Garratt and his wife Julia Dawn Garratt - for suspected theft of military and intelligence information and for threatening national security.

The detention came less than a week after Canada accused Chinese hackers of breaking into a key computer network, the first time it has ever singled out China for such a security breach. Beijing dismissed the allegations as "irresponsible."

The two incidents look set to overshadow a visit by Harper to Beijing in November for a regional summit which could include a first meeting with China's President Xi Jinping.

Since taking power in early 2006, Canada's right-leaning Conservatives have adopted an inconsistent policy on China, reflecting splits between pro-business members and social conservatives who are suspicious of Beijing.

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