But some have questioned the strategy at both the country and company level. Relations between the Canadian and Chinese governments have grown frosty since the arrest of Huawei executive Meng Wanzhou in Vancouver in 2018 at the behest of the United States, exacerbated by the subsequent detention of two Canadians in what many view as a retaliatory move.
A well-timed investment in China’s e-commerce company Alibaba paid off in 2014, at least on paper, when the company went public with a value of US$25 billion. But the fortunes of founder Jack Ma have taken a hit recently after public comments he made appeared to take aim at Chinese regulators. A planned US$35-billion initial public offering for Ant — a fintech company in which Alibaba and its key investors have a stake — was pulled last year.
CPPIB executives defended continued investment in China, stressing the importance of that country to the fund’s geographic diversification and the potential for returns in developing markets with a growing urban middle class.Article content “Asia is a diverse region with many different markets,” Tandiono told the Financial Post in an email. “Having on-the-ground presence and knowledgeable partners allow us to identify and pursue good investment opportunities.”Article content