Recovery requires speedy foreign investment review

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Opinion: We believe enhanced reviews will work better for Canada if these three goals are met

The industry committee’s review followed an April statement by Navdeep Bains, minister of innovation, science and industry, that Canada would use the act to conduct “enhanced scrutiny” of foreign takeovers of Canadian firms that are “distressed.” The government is concerned the pandemic will cause many Canadian firms to either go out of business or be acquired. The associated news release warned that foreign firms could attempt “opportunistic takeovers.

That includes takeovers from China. Some commentators would ban deals with Chinese entities but it is magical thinking to believe we can ignore what by some measures is already the world’s largest economy. Second, transparency around the definition of “critical sector” and about issues raised in the review process. Australia openly declared all sectors critical, while France listed such areas as food safety, defence, energy, AI, quantum computing and cyber security, among others. In Canada, we have left “critical sectors” undefined beyond health.

 

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By denying Chinese enterprises to acquire Canadian ones, we are already cutting 'national security issues' to at least 50%.

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