Report recommends policies for facilitating investment between two
CALGARY, Sept. 6, 2012 /CNW/ - A report published today by The School of
Public Policy and authored by Josephine Smart addresses some of the
major challenges Canada faces both in investing in China and managing
Chinese investment into Canada. The author also proposes policies that
could help Canada overcome these challenges.
"There is clearly more room for Canadian investment in China, but some
cautionary notes are in order," Smart writes. One of these notes
concerns China's economic system of "capitalism with socialist
characteristics." Smart explains that the state can exercise its direct
and indirect influence on corporate decisions and that this represents
a major investment risk.
Smart also argues that corruption remains pervasive in China. "How
investors deal effectively with demands for bribery - without causing
unnecessary and sometimes extreme legal, reputational and financial
costs - is a big challenge," she writes.
Preparing Canadians for investment in China comes down to building
cultural competency. "The enhancement of government-funded China
studies, and language training facilities, will be crucial to the
development of capacity building in Canada," Smart writes.
Here at home, China's thirst for strategic resources is expected to
bring about more and more investment into Canada in the years to come.
Chinese interest in the energy sector is clear, but this interest is
likely to broaden to include farmland and agricultural production.
Smart argues that Canada is well-advised to start formulating a policy
stance around how much of our food system we are willing to hand over
to foreign control. Greater government inputs into food safety
standards compliance in imported products should also be a priority
according to the author.
The report can be found at www.policyschool.ucalgary.ca/publications
SOURCE: The School of Public Policy - University of Calgary
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