Canada to relax investment rules?

Canada to relax investment rules?

Canada to relax investment rules? In an attempt to boost economic activity and attract increased capital to the country, Canada is considering relaxing foreign investment rules and opening up to state-owned enterprises in China, Bill Morneau, the Finance Minister said.

Morneau said his government is planning to enter discussions with their Chinese colleagues in an attempt to encourage more investment here in Canada. “We will express a continued interest in having a renewed relationship with China. In that regard, we’ll be talking about how we can work together,” Morneau said. “Those questions will be things that we’ll talk about, and our view will be that we’ll try and find ways that we can continue to encourage investment in our country.”

Morneau will join Justin Trudeau in leading a Canadian delegation on an official visit to China later this month. The trip will also include the Leaders’ Summit in Hangzhou, during which leaders will examine strategies to grow global growth. “Our goal will be to be communicating to the world why they should be investing in Canada,” Morneau said. “We see Canada as a real beacon for investment globally, a country with low political risk, a highly skilled workforce, and that’s something we want to communicate to G20 countries.”

Regarding the possibility of relaxed foreign investment rules, Portfolio Manager at Industrial Alliance Securities Inc., John J. De Goey, said: “Anything you can do to attract investment is a positive thing; it’s not gimmicky. The one thing that’s been consistent, Trump notwithstanding, in the western world over the past 25 years has been trade liberalization.”

De Goey believes any policy change that makes it easier for people to deploy money where they think it should be is a positive move. “No one wants artificial barriers impeding their ability to buy things they believe reflect good value,” he said. “The world has pretty clearly decided that globalization is here to stay. The direction of public policy is so inexorable that you can’t change it at this point.”
 
2 Comments
  • Murray Schultz 2016-08-23 12:42:32 PM
    Morneau and his jack-boot wearing colleagues must be crazy. When poorly trained politicians lose sight of Canada's sovereignty in their desperate attempt to re-boot the Ontario economy, they do an immense disservice to Canadians. Here in Vancouver, we have seen the negative effects of too much Chinese money - much of it of dubious origin. It comes at a high cost in terms of displacing Canadians, distorting markets (including real estate) and trampling on our values and rights. There is little, if any, cultural overlap and the Chinese have no desire to assimilate - they would prefer to dominate. Morneau and his colleagues should consider consulting the Canadians who are most likely to be affected (both geographically and economically) before going begging for easy money which carries a big back-end penalty.
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  • Tony Battista 2016-08-29 10:58:40 AM
    Encouraging more business with China? This Morneau and Trudeau must have THEIR HEAD EXAMINED. Last week China announced the restrain of Canola Oil import due to impurities in the seeds! I wonder how much crap we
    accept from China. Do we have a department that does chemical analysis to check for toxins and impurities in imported goods? And especially from China. Isn't it enough the lesson from Vancouver and Toronto? The Chinese overinflating prices of real estate, and regular Canadians that cannot afford such high prices. This new Government is adopting a free for all approach damaging Canadians and their jobs. And as Mr. Said there is a lot's of criminal or illegal money coming this way. Of course we rightfully make a big fuss about laundered money in Canada! do we check the provenience of foreign money from China, Russia or Arab states? The Chinese interest has always been to have access to our technology, learn , steal and produce and export for cheaper. This mission should be to claim from China a balanced trade agreement not an expansion and invasion of their trade.
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