China expert Charles Burton, a professor at Brock University, said the move appears to be part of Beijing's attempt to tighten control globally to mute dissent against the ruling regime.
Burton pointed to a recent case of a Hong Kong bookseller with a Swedish passport who was arrested in Thailand and sent to China for "interrogation" as an example of Beijing's actions.
He said the reported policy would be in line with China's policy of considering anyone with Chinese heritage as subject to Beijing's authority.
"I think it does have a chilling effect on people of Chinese origin who felt that acquisition of foreign citizenship gave them a degree of protection," Burton said. "It goes against international law; it's part and parcel of China's refusal to acknowledge the authority of international regimes in general."
He said the policy could be considered discrimination because Beijing is issuing visas based solely on people's ethnicity.
Burton said Canada must raise the issue with China at the highest levels.