Canada has vetoed a deal for a Chinese company to buy a gold mine from Canada’s Temec. Canada said the veto was based on concerns that the Chinese state-owned company’s access to sensitive Arctic areas could pose a threat to Canada’s national security.
Ottawa’s decision could add a new shadow to Canada-China relations that have already deteriorated rapidly with the arrest of Meng Wanzhou, the daughter of Chinese huawei founder Ren Zhengfei.
Meng was detained at a Canadian airport two years ago. Canadian police carried out the arrest at the request of the United States, which has extradition ties with Canada. The U.S. accuses Huawei of violating its commitment to sanctions against Iran and Meng of financial fraud in connection with the sale of U.S. equipment to Iran.
Responding to the Canadian government’s decision, Chinese Foreign Ministry spokesman Zhao Lijian said Wednesday (Dec. 23), “Any practice that politicizes normal business cooperation and uses national security as a reason for political interference is wrong.”
Zhao Lijian is widely known in Western media as a “war wolf diplomat. Referring to the “Five Eyes Alliance” last month, he said, “Whether they have five eyes or ten, if they dare to harm China’s sovereignty, security and development interests, watch out for their eyes being poked out.” The members of the Five Eyes Alliance are Australia, Canada, Britain, New Zealand and the United States.
But this time Zhao Lijian’s response was apparently milder, saying, “The essence of economic and trade cooperation between China and Canada is mutually beneficial and win-win.” “The Canadian side should provide a fair, open and non-discriminatory business environment for enterprises from all countries, including China, to invest in Canada.”
Observers point out that in the recent period, the Chinese Communist Party’s war-wolf diplomacy has caused a four-sided attack and China’s international image has fallen into disarray. Zhao Lijian and other CCP diplomats have recently been speaking much more softly to the outside world than before, which may reflect some kind of adjustment in the CCP’s foreign policy from the top.
“Canada is open to investment, but at the same time protects Canada’s national security interests,” an Industry Canada spokesman said Monday.
Reuters quoted a person familiar with the matter as saying that (Canada) was deeply troubled by the acquisition of a gold mine in the Far North by a Chinese state-owned company, which led to the acquisition being vetoed (by the Canadian government).
The U.S. and Canada have publicly stated that the Arctic is rich in resources and is a new area for the West to compete with China and Russia, U.S. financial media Bloomberg said in an analysis. Security experts believe that China’s access to gold mines here will facilitate China’s use of the “Northwest Passage” sea route connecting the Atlantic and Pacific Oceans.
Shandong Gold Mining, owned by the Shandong provincial government, is China’s largest gold miner with a market value of more than 100 billion yuan, ranking first in China’s non-ferrous metals industry.
The company said Tuesday it had received a notice from the Canadian government asking it to halt the acquisition deal.
Temec Resources also confirmed the news that the deal had been canceled. The company’s website reported on Monday that a deal for a Chinese company to buy the company’s gold mine in the Arctic, a deal valued at $230 million, has been canceled.
The Nunavut gold mine in the Arctic, located in Hope Bay, has good gold ore reserves and could produce 150,000 kilograms of gold.
Temec said the company is currently experiencing debt difficulties and that 97 percent of shareholders agreed to the deal. The Wall Street Journal said Temec’s financial situation is poor, and if the acquisition cannot be completed, Temec may not be able to repay the high debt due in June next year.
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