With Canada’s new Indo-Pacific strategy set to be released next month, Foreign Affairs Minister Melanie Joly is warning businesses against deepening ties with China, saying there are “geopolitical risks” involved.
“What I would like to say to Canadians doing business in and with China—you need to be clear-eyed,” Joly said during a speech at the Munk School of Global Affairs & Public Policy in Toronto, on Nov. 9.
“The decisions you take as business people are your own,” she said. “As Canada’s top diplomat, my job is to tell you that there are geopolitical risks linked to doing business with the country.”
She said China is increasingly diverging from Canadian values, and so businesses operating in that country face risks of political interference and the violation of trade rules.
“China is an increasingly disruptive global power,” she said, adding Canada seeks deeper ties with more democratic, reliable countries such as India.
Joly is expected to introduce Canada’s new Indo-Pacific Strategy by early December, which will outline key policies regarding the country’s relationship with China. The minister today detailed some points that will be addressed in the forthcoming plan, including Canada’s ongoing trade partnership with China.
‘Five Objectives’
Canada’s upcoming Indo-Pacific Strategy will consist of five main points, Joly said: promoting peace and security, addressing trade and investment issues, advocating for human rights, climate change, and furthering Canada’s international presence in the region.“We will challenge China when we ought to, and we will cooperate with China when we must,” she said. “Its sheer size and influence makes cooperation necessary to address the world’s existential pressures.”
“We will act decisively when investments threaten our national security and our critical minerals supply chains, both at home and abroad,” said Economic Development Minister Francois-Philippe Champagne in a statement on Nov. 2.
Last month, Ottawa ordered three Chinese companies to withdraw their investments in Canadian lithium companies.
The actions came shortly after a government statement said that “significant transactions by foreign state-owned enterprises in Canada’s critical minerals sectors will only be approved as of likely net benefit on an exceptional basis.”
Joly commented on the issue today, saying the government will address Chinese investment in “other sectors” in the future.
“Canada is open to investment, but at the same time, we can’t be naive.”
