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China opposes restriction on Chinese mineral firms to divest in Canada

  • By Al Mayadeen English
  • Source: Agencies
  • 6 Nov 2022 12:04
  • 1 Shares
3 Min Read

Ottawa ordered three China-originated foreign companies to divest investments in Canadian critical mineral firms over alleged concerns for Canada's national security.

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  • China against Canada's imposed restrictions on Chinese mineral firms
    Ministry of Commerce of the PRC

The Chinese Ministry of Commerce said on Sunday that China strongly disagrees with the restrictive measures imposed by the Canadian government on Chinese mineral firms, forcing Canadian companies to withdraw their investments in Canada's critical mineral firms involved in lithium mining projects.

"The Chinese side resolutely opposes Canada's actions that violate and block normal business cooperation between Chinese and Canadian companies on the pretext of protection of national security," the Ministry said in a statement.

The Commerce Ministry also requested Canada to cease the provocative politicization of economic and trade relations and promote a fair and non-discriminatory business environment for foreign investors, including Chinese investors.

The Ministry said the government of the PRC would take adequate measures to safeguard the legitimate interests of its companies.

On Wednesday, Ottawa ordered three China-originated foreign companies to divest investments in Canadian critical mineral firms over alleged concerns for Canada's national security.

According to a statement issued by Industry Minister Francois-Philippe Champagne, Sinomine Rare Metals Resources Co. Limite was asked to sell its investment in Power Metals Corp, Chengze Lithium International Limited was asked to divest itself of its investment in Lithium Chile Inc, and Zangge Mining Investment (Chengdu) Co. Ltd. is required to exit from Ultra Lithium Inc.

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Although China has insisted on a neutral position in the war in Ukraine, the US has been spearheading an international campaign to punish the Asian country economically.

Apart from US Speaker Nancy Pelosi's provoking visit to Taiwan in early August, the sale of weapons to Taiwan, the frequent sailing of warships in the Taiwan Straits that the western community arrogantly refers to as "international waters", adding Chinese firms to 'unverified' control lists, the embargo on the sale of technologies to China, and the block on the purchase of microchips add up to the US' "punishing" measures. 

The US has influenced other countries to follow suit. 

On June 6, China warned the Canadian air force against threatening China's national security as Ottawa ramped up intelligence activities in the region. 

On September 21, a Canadian warship entered Taiwan Strait with the Navy's 7th Fleet stating that the ship "entered through a corridor in the Strait that is beyond the territorial sea of any coastal State."

On October 12, former UK PM Liz Truss announced that the British government had officially designated China as a “threat” to the UK, marking a major shift in the UK's foreign policy.

On November 1, German Chancellor Olaf Sfcholz's visit to China will kick-start developments regarding Chinese-German cooperation despite that the Chancellor was warned by the EU not to allow Chinese investors to invest in the Hamburg port.

Read more: Iran sanctions 8 Canadian individuals, one entity in reciprocal move

  • Canada
  • China
  • PRC ministry of commerce
  • restrictions

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