That seems quite a reach, and a selective read of what the article contains. It
also says:
Canada and the United States say that the detention of the Canadian men - dubbed by Canadian media as "the two Michaels" in a case followed closely - was illegal and arbitrary, an accusation Beijing denies.
Unless you can find compelling evidence that spying is being called "security reporting operations", I would suggest what it
actually meant is that the Canadian government failed to warn its citizens that China is an unsafe place for them to visit and conduct business. I don't know about Canada, but the US Government maintains advisory warnings to its citizens on what countries & regions they should avoid. Perhaps the basis of the settlement is simply that the Canadian government failed to issue any sort of warning or advisory that would've allowed the detained individuals to adjust their plans and thereby avoid being detained.
There's also the common sense aspect of what you're saying. If they were spies, don't you think the Canadian government would already have a mechanism in place to support the families of its detained operatives? The very fact that this lawsuit is public should tell us they weren't spies.
Either way, you can't rest such an allegation on an ambiguous phrase cherry-picked from one article. Such a claim would require more definitive evidence.