Posts tagged ‘canada’

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18/09/2014

N. Korea, China to open major bridge next month

North Korea and China are set to open a major suspension bridge across the Amnok River in October, paving the way for closer economic relations between the allies, China’s state media reported Thursday.

The 3-kilometer, 2.2 billion yuan (US$357 million) bridge links the North’s border city of Sinuiju to the neighboring Chinese city of Dandong over the river, also called the Yalu River in China. Dandong handles more than 70 percent of bilateral trade with North Korea.

The official China News Service, without citing any sources, reported that the bridge will be opened in October, when the two nations hold a joint trade fair in Dandong.

If the Chinese-funded bridge opens, the report said, “Dandong will become more important in China-North Korea trade.”

The bridge illustrates the view in China that economic engagement with North Korea is a prerequisite to persuading it to abandon its nuclear weapons program, and its resistance to U.S. calls to exert more economic leverage to restrain the regime.

A series of provocations by the North, including last year’s nuclear test, have strained political ties with its last-remaining ally, China. Still, many analysts believe that Beijing will not put strong pressure on Pyongyang due to the risk of aggravating the current situation.

via N. Korea, China to open major bridge next month.

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15/05/2013

* Arctic Council to rule on observer status for China

FT: “The Arctic is at the centre of a global geopolitical battle as China, India and Japan attempt to join the main body involved in setting the rules for future development of the polar region.

Oil drilling in the Arctic seas has become a highly contentious issue.

At a meeting in Kiruna in northern Sweden on Wednesday and Thursday, ministers from the five Nordic countries, the US, Canada and Russia will decide whether to let 14 countries and organisations gain the status of “observer” to the Arctic Council.

China is the most controversial name on the list, but its candidacy has the support of all the Nordic countries.

Canada and Russia have expressed concerns about further opening up the council, which already has six European countries as observers as well as various intergovernmental and non-government organisations. The US has said it is undecided over the decision, which needs unanimity.

The Arctic is viewed as an increasingly strategic area due to the presence of many resources such as oil, as well as the possibility of quicker shipping routes between Europe and Asia as the ice in the polar region continues to melt.

China, Japan, South Korea, Singapore, India, the EU, Italy and Greenpeace are among the bodies applying at the twice yearly summit for observer status, which would allow them to attend all meetings but not participate in the ministerial conferences.

The council, which was launched in 1996 and serves as a body for international rulemaking on the Arctic.

In a sign of the importance the US is now according the Arctic, secretary of state John Kerry arrived on Tuesday in Sweden for talks first in Stockholm with the government and then in Kiruna.

China has heavily wooed Nordic countries such as Iceland, with which it signed the first free-trade agreement with a European country last month.

Oil exploration in the Arctic has proved to be incredibly difficult, but more than a fifth of the world’s undiscovered oil and gas reserves is thought to be in the region, and there is also great scope for mining of various minerals in places such as Greenland, northern Sweden and Finland.

A northern sea route through the Arctic to the north of Russia could cut several weeks off shipping times and thousands of kilometres off distances between Europe and Asia, especially in the summer, which experts think could soon be ice-free in parts of the region.”

via Arctic Council to rule on observer status for China – FT.com.

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09/02/2013

* China Steps Up Buying in U.S.

WSJ: “The made-in-China label isn’t such a deal breaker anymore.

After being burned by a series of high-profile failures, Chinese companies are learning to navigate the delicate political and regulatory landscape for takeovers in the U.S.

[image]

Major U.S. companies remain essentially unattainable to Chinese buyers. So are many firms that can be tied to national security or critical technologies. Still, Chinese firms are stepping up their investments in the U.S. by targeting smaller companies, going after minority stakes and avoiding the most sensitive acquisition targets.

Wanxiang America, a unit of China’s Wanxiang Group, is paying $257 million to buy A123 Systems, a U.S. government-backed maker of lithium-ion batteries, after an early attempt at a purchase collapsed.

China hasn’t given up on big deals. The Committee on Foreign Investment in the U.S., a government group that reviews foreign acquisitions, is expected to decide in coming weeks whether to approve two multibillion-dollar deals by Chinese firms. A Cfius spokeswoman declined to comment.

The deals getting the green light so far are smaller. Last week, U.S. regulators approved the Chinese acquisition of a U.S. battery maker despite political resistance and an initially icy reception. Wanxiang America Corp., a unit of China’s Wanxiang Group, is paying $257 million to buy A123 Systems, AONEQ -3.57% a U.S. government-backed maker of lithium-ion batteries, after an early attempt at a purchase collapsed.

“You just need to understand the rules, follow the rules, be very transparent and let them make the decision,” says Pin Ni, president of Wanxiang America, who started the U.S. offshoot out of a home office in Chicago.

 

[image]Last year, Chinese buyers agreed to spend more than $10 billion in 46 deals to acquire U.S. companies or stakes in U.S. firms, according to Dealogic. The volume was higher than the Chinese total from 2009 through 2011 combined. The tally included the sale of Kansas City, Mo.-based movie-theater chain AMC Entertainment Holdings to Wanda Group for $700 million.

The U.S. still trails Canada, where Chinese firms announced $23 billion worth of deals for Canadian companies or stakes last year. The total includes the pending $15.1 billion acquisition of Canadian oil-sands operator Nexen Inc. NXY.T +1.39% by Cnooc Ltd., 0883.HK -0.13% the Chinese state energy giant.

via China Steps Up Buying in U.S. – WSJ.com.

 

 

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09/12/2012

* Canada OK’s foreign energy takeovers, but slams door on any more

China acquires more natural resources.

Reuters: “Canada approved China’s biggest ever foreign takeover on Friday, a $15.1 billion bid by state-controlled CNOOC Ltd for energy company Nexen Inc., but drew a line in the sand against future buys by state-owned enterprises.

A man walks into the Nexen building in downtown Calgary, Alberta, July 23, 2012. REUTERS/Todd Korol

In a fierce defense of a tough, new foreign investment framework, Prime Minister Stephen Harper said Canada would not deliver control of the oil sands – the world’s third-largest proven reserves of crude – to a foreign government.

The ruling, anxiously awaited by investors and politicians alike, followed months of heated debate about how much of Canada’s energy sector could and should be absorbed by companies run by other nations.

The bid triggered unusually open dissent among legislators in the ruling right-of-center Conservatives, many of whom were particularly nervous about the idea of allowing China to gain control of the oil sands.

Canada said yes to this deal, but will not do so next time.

“To be blunt, Canadians have not spent years reducing the ownership of sectors of the economy by our own governments, only to see them bought and controlled by foreign governments instead,” Harper told reporters after Ottawa gave the deal the green light, along with approval for the less controversial takeover of gas company Progress Energy Resources Corp by another state-owned energy company, Petronas of Malaysia.

“Foreign state control of oil sands development has reached the point at which further such foreign state control would not be of net benefit to Canada,” he added.”

via Canada OK’s foreign energy takeovers, but slams door on any more | Reuters.

See also: https://chindia-alert.org/2012/02/13/pattern-of-chinese-overseas-investments/

Posted in China alert, Economics, Foreign acquisition, Natural resources, oil & gas | 1 Comment »

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07/11/2012

* India and Canada finalise conditions of nuclear deal

BBC: “India and Canada have finalised the terms for their nuclear deal, paving the way for Canadian firms to export uranium to India.

Electricity cable in India

Once implemented, the deal is likely to provide a boost to India’s plans to increase its nuclear capacity to meet growing energy demands.

The deal was agreed in 2010, but there had been differences over supervision of the use of uranium in India.

Canada has banned the trade of nuclear materials with India since 1976.

“Canada with its large and high quality reserves of uranium could become an important supplier to the Indian nuclear power programme,” India’s Prime Minister Manmohan Singh and his Canadian counterpart Stephen Harper said in a joint statement.

‘Important economic opportunity’

India’s economy has seen rapid expansion in recent years resulting in a surge in demand for energy in the country.

In a bid to meet its growing energy needs, India has been looking to increase its dependence on nuclear energy.

It is planning to set up some 30 reactors over as many years and get a quarter of its electricity from nuclear energy by 2050.

As a result it has been looking to secure supplies of uranium to achieve that target.

Canada’s Prime Minister Stephen Harper said that being able to be a part of India’s nuclear power plans was “a really important economic opportunity for an important Canadian industry… that should pay dividends in terms of jobs and growth for Canadians down the road”.

Earlier this month, India agreed to begin negotiations on a civil nuclear co-operation agreement with Australia, which holds an estimated 40% of the world’s uranium.

Last year, it agreed a deal that will allow South Korea to export its nuclear energy technology to India.”

via BBC News – India and Canada finalise conditions of nuclear deal.

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24/07/2012

* CNOOC to buy Nexen for $15.1 billion in China’s largest foreign deal

Reuters: “State-controlled CNOOC Ltd launched China’s richest foreign takeover bid yet on Monday by agreeing to buy Canadian oil producer Nexen Inc for $15.1 billion, forcing Ottawa to decide whether security concerns outweigh its desire for foreign investment in its energy resources.

CNOOC, China’s third-largest oil company, hopes to sell the deal to shareholders and the government with a hefty 61 percent premium to Nexen’s Friday stock price. It promised to retain all employees and to make Canada home base for its Western Hemisphere operations.

CNOOC is offering $27.50 cash a share for Nexen, which has oil sands operations in the Canadian province of Alberta, shale gas in the province of British Columbia and extensive exploration and production holdings in the North Sea, Gulf of Mexico and offshore West Africa.

The initial shareholder reaction was enthusiastic. Shares of Nexen, whose board unanimously approved the deal, surged C$9.06, or 52 percent, to C$26.35 in Toronto on Monday.

…

The move is the most ambitious foray by resource-hungry China into North American energy since a 2005 attempt to buy U.S.-based Unocal for $18.5 billion was thwarted by a political backlash there.

Chinese companies have been among the most aggressive in targeting assets around the globe to help feed demand in the world’s second-biggest economy.

As for Canada, Prime Minister Stephen Harper has pushed to attract more energy investments from China. The CNOOC deal shows his efforts are bearing fruit, and Canada has more reasons to accept the deal than to veto it.

“For Canada, this agreement provides a stable source of investment for the many projects that Nexen operates, which includes the exploitation of bitumen in Alberta,” CNOOC Chief Executive Li Fanrong said in a conference call.

“Because we intend to be a local company as much as a global one, we also intend to seek a listing for CNOOC Ltd on the Toronto Stock Exchange.”

The deal is subject to a review by the Industry Ministry, which by law must decide if the takeover would bring a “net benefit” to Canada.

In its favor is both CNOOC’s commitments to Canada, and the fact that Nexen’s operations are mostly outside Canada.”

via CNOOC to buy Nexen for $15.1 billion in China’s largest foreign deal | Reuters.

See also: https://chindia-alert.org/2012/02/13/pattern-of-chinese-overseas-investments/

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12/02/2012

* Panda diplomacy strikes again – for Canada

Huff Post: “Canada’s Prime Minister Stephen Harper wrapped up a visit to China aimed at boosting oil sales by announcing Saturday that Beijing will lend two of the country’s prized giant pandas to Canadian zoos.

Harper visited a zoo in the southwestern city of Chongqing to say that the Chinese government is loaning the panda pair to Canada for the next 10 years, Harper’s press secretary Carl Vallee said.

…

The pandas are expected to arrive in Canada early next year and will go to the Toronto and Calgary zoos for five years each. The giant panda is unique to China and is regularly sent abroad as a sign of warm diplomatic relations or to mark breakthroughs in ties.”

http://www.huffingtonpost.com/2012/02/11/canada-pandas-china_n_1270742.html

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