#Newspaper
Canada needs to clarify foreign takeover rules amid heightened risk of state-led acquisitions, committee told
//potential takeovers by Chinese state-owned enterprises (SOEs) are particularly worrisome, as they could be used on behalf of the Communist Party of China to advance its foreign strategic interests.
//Ottawa has for years struggled to strike a balance between attracting foreign investment and fending off politically-motivated takeovers by foreign states. Those concerns reached new highs in 2013 when Ottawa threatened to reject — but ultimately approved — China’s $15-billion purchase of oilsands giant Nexen. More recently, in 2018, the Liberal government rejected the takeover of Canadian construction firm Aecon by a Chinese SOE, citing national security risks.
//Burton on Monday reiterated concerns about Chinese-led takeovers in strategic assets like energy or telecommunications. Many investments made by Chinese firms are done purely out of strategic, rather than commercial interests, he said — like those being pursued under China’s Belt and Road initiative.
//Those projects have increasingly come in the form of “debt trap diplomacy,” Burton said, in which the Chinese government loans money to struggling states under harsh terms, as part of a long-term plan to take over the asset at a later date.
//In April, Industry Minister Navdeep Bains put forward policy changes allowing Ottawa to more closely scrutinize “investments of any value, controlling or non-controlling” by foreign companies, particularly those involving public health or the supply of critical goods and services. He also removed thresholds for reviewing investments in any sector by state-owned or state-connected entities.
//tightening language around what constitutes a strategic interest could prove challenging, as it would force Ottawa to effectively choose essential versus non-essential industries.
Full article: Sherwood Park News, (8 Jun)
#Pandemic #Canada #ForeignTakeover #StateLedAcquisition #BeltAndRoad #NationalSecurity
Canada needs to clarify foreign takeover rules amid heightened risk of state-led acquisitions, committee told
//potential takeovers by Chinese state-owned enterprises (SOEs) are particularly worrisome, as they could be used on behalf of the Communist Party of China to advance its foreign strategic interests.
//Ottawa has for years struggled to strike a balance between attracting foreign investment and fending off politically-motivated takeovers by foreign states. Those concerns reached new highs in 2013 when Ottawa threatened to reject — but ultimately approved — China’s $15-billion purchase of oilsands giant Nexen. More recently, in 2018, the Liberal government rejected the takeover of Canadian construction firm Aecon by a Chinese SOE, citing national security risks.
//Burton on Monday reiterated concerns about Chinese-led takeovers in strategic assets like energy or telecommunications. Many investments made by Chinese firms are done purely out of strategic, rather than commercial interests, he said — like those being pursued under China’s Belt and Road initiative.
//Those projects have increasingly come in the form of “debt trap diplomacy,” Burton said, in which the Chinese government loans money to struggling states under harsh terms, as part of a long-term plan to take over the asset at a later date.
//In April, Industry Minister Navdeep Bains put forward policy changes allowing Ottawa to more closely scrutinize “investments of any value, controlling or non-controlling” by foreign companies, particularly those involving public health or the supply of critical goods and services. He also removed thresholds for reviewing investments in any sector by state-owned or state-connected entities.
//tightening language around what constitutes a strategic interest could prove challenging, as it would force Ottawa to effectively choose essential versus non-essential industries.
Full article: Sherwood Park News, (8 Jun)
#Pandemic #Canada #ForeignTakeover #StateLedAcquisition #BeltAndRoad #NationalSecurity
sherwoodparknews
Canada needs to clarify foreign takeover rules amid heightened risk of state-led acquisitions, committee told
Ottawa has for years struggled to strike a balance between attracting foreign investment and fending off politically-motivated takeovers by foreign states