Tuesday, January 08, 2008
Canada Is `Anxious' to Have Investment From China, Emerson Says
Bloomberg, January 8, 2008
By Theophilos Argitis
Jan. 8 (Bloomberg) -- Canadian Trade Minister David Emerson said he's trying to assure officials in China that the country remains a welcome investor, after Canada last month placed new limits on takeovers by foreign state-run firms.
Emerson, 62, said he told Chinese Commerce Minister Chen Deming during a meeting today in Beijing that the rules target non-commercial investments meant to advance ``political'' motives. Canada would welcome investment from China Investment Corp., the nation's $200 billion sovereign wealth fund, Emerson said in a conference call with reporters.
``I communicated to him that Canada is anxious to have Chinese investments in Canada, including investments by the China Investment Corp.,'' said Emerson, who is on a five-day tour of China, Hong Kong and Mongolia to promote trade links.
Relations between Canada and China soured after Prime Minister Stephen Harper's Conservative Party government was elected two years ago. Harper has criticized the Asian nation's human-rights record, and in December Canada outlined new foreign-investment rules that analysts say may limit investments in Canada by Chinese state-run firms and funds.
When Harper met with the Dalai Lama in October, China warned the move would have a ``grave'' impact on relations between the two countries. Also, China has been reluctant to give Canada so-called ``approved-destination status,'' which would allow Chinese and foreign travel agencies to promote and package group tours to Canada.
WTO Threat
Emerson warned the government may file a complaint with the World Trade Organization if China doesn't restart talks to ease the marketing restrictions.
``We have to move it along in a meaningful way in a relatively short time frame or we will really have no choice but to explore the WTO option,'' Emerson said.
Still, political disagreements between the two governments shouldn't undermine business ties, he said.
``Our general approach on these human rights and democracy issues is to operate on two tracks,'' Emerson said. ``We do not think that has to necessarily get in the way of carrying on trade and investment.''
An investment deal between the two countries is ``within striking distance,'' he said, adding that China's Chen also provided very ``encouraging signals'' on the travel dispute.
To contact the reporter on this story: Theophilos Argitis in Ottawa at targitis@bloomberg.net. ¶ 1:55 PM
By Theophilos Argitis
Jan. 8 (Bloomberg) -- Canadian Trade Minister David Emerson said he's trying to assure officials in China that the country remains a welcome investor, after Canada last month placed new limits on takeovers by foreign state-run firms.
Emerson, 62, said he told Chinese Commerce Minister Chen Deming during a meeting today in Beijing that the rules target non-commercial investments meant to advance ``political'' motives. Canada would welcome investment from China Investment Corp., the nation's $200 billion sovereign wealth fund, Emerson said in a conference call with reporters.
``I communicated to him that Canada is anxious to have Chinese investments in Canada, including investments by the China Investment Corp.,'' said Emerson, who is on a five-day tour of China, Hong Kong and Mongolia to promote trade links.
Relations between Canada and China soured after Prime Minister Stephen Harper's Conservative Party government was elected two years ago. Harper has criticized the Asian nation's human-rights record, and in December Canada outlined new foreign-investment rules that analysts say may limit investments in Canada by Chinese state-run firms and funds.
When Harper met with the Dalai Lama in October, China warned the move would have a ``grave'' impact on relations between the two countries. Also, China has been reluctant to give Canada so-called ``approved-destination status,'' which would allow Chinese and foreign travel agencies to promote and package group tours to Canada.
WTO Threat
Emerson warned the government may file a complaint with the World Trade Organization if China doesn't restart talks to ease the marketing restrictions.
``We have to move it along in a meaningful way in a relatively short time frame or we will really have no choice but to explore the WTO option,'' Emerson said.
Still, political disagreements between the two governments shouldn't undermine business ties, he said.
``Our general approach on these human rights and democracy issues is to operate on two tracks,'' Emerson said. ``We do not think that has to necessarily get in the way of carrying on trade and investment.''
An investment deal between the two countries is ``within striking distance,'' he said, adding that China's Chen also provided very ``encouraging signals'' on the travel dispute.
To contact the reporter on this story: Theophilos Argitis in Ottawa at targitis@bloomberg.net. ¶ 1:55 PM
