Free trade a win for Canada and China

Last week, officials and experts from both China and Canada held in Ottawa the second round of exploratory discussions on a bilateral freetrade agreement. Both sides enjoyed in-depth and fruitful discussions. The Chinese premier and Canadian prime minister agreed last year to pursue the signing of a freetrade agreement, one that will create better conditions and a better environment for co-operation between our two countries. Such an agreement would be of mutual benefit and deliver winwin results, being not only helpful for China to enter the Canadian market, but also favourable for Canadian businesses to enter the Chinese market, which is much bigger.

After I came to Canada earlier this year, through reading newspapers and getting in touch with various people I find that the Canadian public has three major concerns about a China-Canada free-trade agreement. Firstly, there is prejudice against China’s state-owned enterprises, with appeals to prohibit them from entering the Canadian market. Secondly, people worry that Chinese enterprises would buy up Canadian oilsands companies and high-tech enterprises. Thirdly, there are those who want to involve issues of human rights in the free-trade negotiations. I would like to respond to these three concerns, respectively.

Firstly, Canadians should not hold a prejudice against China’s state-owned enterprises. These enterprises are a pillar of China’s national economy, shouldering important responsibilities of China’s social and economic development, providing jobs for millions of Chinese people, and offering public services such as water, electricity, gas, transportation, medical care and education to all Chinese people.

Just like privately owned firms, China’s state-owned enterprises operate according to market rules. The only difference is that they not only pay taxes to our government, but they also contribute a portion of their profits state-owned enterprises with discriminating policies, what would Canadians think about that?

When it comes to Chinese companies buying oil sands companies, to be honest, those that have already done so are now incurring losses. Canada’s oil sands are not competitive given the current international oil price. Even if Canadians did not disapprove, I do not believe that Chinese enterprises would be interested in investing in the oil sands.

As for co-operation between Chinese and Canadian high-tech enterprises, it is a mutually beneficial and twoway business relationship. It