In Canada, China, Economics, Trade War

The Canadian government has rejected the acquisition of the Canadian construction company, Aecon, by China Communications Construction Company (CCCC) on national-security grounds. In a strongly-worded signed statement posted in the opinion pages of Canada's leading liberal daily, the Chinese Ambassador to Canada strongly regrets this decision, and states that China 'does not agree with politicizing and wantonly using the concept of national security and opposes adopting discriminatory policies against Chinese enterprisesThe Canadian government has rejected the acquisition of the Canadian construction company, Aecon, by China Communications Construction Company (CCCC) on national-security grounds. In a strongly-worded signed statement posted in the opinion pages of Canada’s leading liberal daily, the Chinese Ambassador to Canada strongly regrets this decision, and states that China ‘does not agree with politicizing and wantonly using the concept of national security and opposes adopting discriminatory policies against Chinese enterprises.’ Canada’s rejection of Aecon shows that Chinese enterprises are suffering from unfair treatment, he says – and it’s not the first time.

First published on Embassy of the People’s Republic of China in Canada

May 31, 2018


[framed_box width=””][/framed_box]

On May 30, The Globe and Mail published an article written by Chinese Ambassador to Canada Lu Shaye. Here is the full text:

I regret that the Canadian government rejected the acquisition of the Canadian construction company, Aecon, by China Communications Construction Company (CCCC) on national-security grounds. China does not agree with politicizing and wantonly using the concept of national security and opposes adopting discriminatory policies against Chinese enterprises. Canada’s rejection of Aecon shows that Chinese enterprises are suffering from unfair treatment – and it’s not the first time.

The rejection will result in much greater loss for Canada than China. The acquisition offered by CCCC at a premium of $1.5-billion was definitely good news for Aecon. It would not only greatly improve Aecon’s international competitiveness and tap into its development potential, but also help increase employment opportunities and employee welfare, from which its shareholders would also benefit. Yet, the Canadian government made this impossible, leaving the employees and shareholders of Aecon disappointed. But for CCCC, a world construction giant, the Canadian construction market is insignificant and being rejected for acquiring Aecon may only mean that it has saved $1.5-billion.

We have noticed that since CCCC reached an acquisition agreement with Aecon in October last year, the Canadian media have repeatedly hyped CCCC as one of the state-owned enterprises of China, which they described as monsters. These reports are neither objective nor fair. I have always stressed that China has no objection to Canada’s security review of acquisitions by foreign enterprises. But we oppose demonizing Chinese state-owned enterprises and abrasively smearing them. I have said that slandering Chinese state-owned enterprises in this way is immoral.

Still, some people are so full of imagination that they claim China’s development depends on stealing technologies from western countries. I’d like to advise them to keep calm and think: How could a country such as China – with a population of more than one billion – develop by solely stealing technologies from other countries? It would be too arrogant for someone to think that innovation capacity is exclusive to western countries.

In fact, China has long been a major powerhouse of independent innovation. According to data released by the World Intellectual Property Organization, China was the largest holder of newly registered patents in the world in 2016 and 2017. These people are advised not to believe that developing countries will always lag behind the West. At present, it is an inevitable trend for countries to carry out international technological co-operation in the era of globalization. Being complacent and conservative are not only against the international trend, but also bound to be left behind. To maintain the leading position in technology fields, western countries must run faster, instead of tripping other countries up and making dirty tricks. Some people also attack CCCC’s participation in construction on islands and reefs in the South China Sea. But this just proves that CCCC boasts advanced technology in the infrastructure field. Perhaps what they are really afraid of is the strong competitiveness of China’s state-owned enterprises.

And some people have said that western standards are global standards in terms of investment, trade and protection of intellectual-property rights. Such logic seems domineering and centres around the idea that westerners have the final say on international rules. On the contrary, I think that global standards are by no means western standards. Using standards defined by the West to ban or suppress the progress of developing countries is futile, and runs counter to international morality.

The world is colourful – and Canada has always boasted diversity and multiculturalism. I hope Canadians can embrace China as simply a different country and not regard China as a threat just because of our differences. Only by getting rid of such kinds of demons can Canada relieve the burden, co-operate with China and come aboard the express train of China’s development.

 

*****

EDITOR’S NOTE: We remind our readers that publication of articles on our site does not mean that we agree with what is written. Our policy is to publish anything which we consider of interest, so as to assist our readers in forming their opinions. Sometimes we even publish articles with which we totally disagree, since we believe it is important for our readers to be informed on as wide a spectrum of views as possible.

Recent Posts
Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.

Start typing and press Enter to search

Translate »
Trump's trade war on China squarely targets its goal of becoming a tech superpower. China is fighting backThe backstory to tit-for-tat sanctions: a systematic attempt by US policymakers to remove China from the world stage as a hi-tech economic player.