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House Hansard - 203

44th Parl. 1st Sess.
May 31, 2023 02:00PM
Context: House Hansard - 203 - Jun/1/23
Mr. Kevin Vuong (Spadina—Fort York, Ind.)
  • Jun/1/23 12:19:47 a.m.
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Madam Speaker, we are here this evening past midnight to debate a vitally important matter. We are here this evening again because we see the blissful ignorance of the government in permitting Chinese state-owned enterprises to acquire control over Canada's mining industry. It is more unconscionable when it is impossible for Canadian companies to acquire mining land claims or control over any Chinese company, especially involving critical minerals. According to Guy Saint-Jacques, Canada's former ambassador to China, “There's no level playing field for foreign companies in China, and many sectors remain closed to them, or access is similarly limited.” When appearing before a parliamentary committee, he added, “China does not play by international trade rules.” No kidding. It is quick to complain about perceived injustices of other countries toward it, but not so quick to provide fair treatment to foreign companies trying to operate in China. Like with foreign interference, Canada has again been reduced to being a doormat for China. Canada has given China free rein to do whatever it wants under pathetic oversight from Ottawa. The Globe and Mail reported in August 2022 that three years ago, Sinomine Resource Group Co. bought the Tanco mine in Manitoba. Tanco was one of the world's few sources of the critical mineral cesium. The mine previously produced lithium, a battery metal used in electric cars. The government had the authority to block the acquisition on national security grounds, but instead of blocking it, Ottawa did nothing. Later, the Tanco mine was acquired by China and started producing lithium to ship back home. Sinomine also secured an offtake agreement guaranteeing it all of the lithium, cesium and tantalum produced by Power Metals Corporation's Case Lake critical minerals property. Offtake agreements are just as good as ownership and do not create irritating media stories. The government also approved the sale of Canada's lithium development company Neo Lithium Corp. to a Chinese state-owned company, and in its infinite wisdom, the government decided not to order an advanced security screening of the deal. Mr. Jeffrey Kucharski, a former assistant deputy minister of Alberta's Department of Energy, stated before a parliamentary committee, “How can Canada build a lithium supply chain, or any other critical mineral for that matter, when it allows the assets of Canadian companies to be acquired by a country that seeks to cement its dominance in this sector?” Beijing supports its state-owned enterprises by providing subsidies, access to cheap capital and tax breaks that are much greater than anything that a western government can offer. While Canada has welcomed legitimate Chinese investment, there is Iittle or no reciprocity, as I alluded to earlier with the comments of former ambassador Saint-Jacques. China uses its dominant position in critical minerals to exert leverage over other countries. What has been Canada's response? It claims to want to scrutinize foreign takeovers. That is great. However, over the past five years, fewer than 1% were subjected to security reviews. Canada should look to Australia for a road map. It has a tougher stand on proposed Chinese investments, and its government has rejected several transactions on national security grounds. Australia even strengthened its oversight by introducing a new “last resort” power, whereby it has the authority to review a previously approved transaction when national security risks emerge after the fact. Canada may need China to bail out financially struggling mining companies, but that does not mean we have to give up complete control over our vital resources. Sadly, that is exactly what has been happening.
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