Slumping Chinese investment comes after several years of lower foreign direct investment into Canada overall, despite efforts by Trudeau to boost the levels
But Houlden said heightened geopolitical tensions between the countries are also a “significant” factor, which could be nudging state-owned enterprises away from placing bets in Canada.
Chinese investors have shied away from Canada after making an ambitious push into the country in 2010 as part of the Communist Party’s “going out” strategy, in which it sought to rapidly build up its international asset base through strategic acquisitions.But many of those investments have gone sour, most notably the high-profile acquisition of Canadian oilsands giant Nexen by China National Offshore Oil Corp., a state-owned enterprise.
Ottawa in 2018 rejected the proposed $1.5-billion takeover of construction giant Aecon Group by a Chinese firm, citing national security concerns. China lashed out at Canada for its “politicization” of the issue. Some experts warn that Chinese firms, and particularly SOEs, can be used as a tool by the Chinese government to forward its foreign policy aims.A House of Commons committee in recent weeks studied potential changes to the Investment Canada Act, which oversees the review of foreign takeovers. Several witnesses suggested a moratorium on Chinese investment into Canada for the duration of the COVID-19 pandemic, citing security concerns.
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