A member of the Liberal Party of Canada, Chan was elected to Parliament in the 1993 federal election, defeating then Defence Minister Tom Siddon in the riding of Richmond, British Columbia.
Chan is the fourth Chinese Canadian elected to Parliament, after Douglas Jung, who secured a seat in 1957, Art Lee in 1974 and Inky Mark in 1997.
In 2008, Chan lost his riding of Richmond to Conservative candidate Alice Wong.