In­vest­ment in Canada on the rise

China Daily (Canada) - - FRONT PAGE - By LI NA in Toronto re­nali@chi­nadai­lyusa.com

Chi­nese For­eign Di­rect In­vest­ment (DFI) into Canada has in­creased sig­nif­i­cantly in the last sev­eral years, said Paul Fer­ley, as­sis­tant chief economist at the Royal Bank of Canada (RBC), the largest bank in Canada.

Fer­ley spoke on Tues­day at a brief­ing on the out­look for the US and Cana­dian economies, and the im­pact of China, with a group of Chi­nese-Cana­dian media rep­re­sen­ta­tives and real es­tate pro­fes­sion­als.

“Over the past five years, Chi­nese DFI flows into Canada have in­creased by over $10 bil­lion,” said Fer­ley. “Data through 2012 in­di­cates in­vest­ment flows from Asia rose strongly in the min­ing sec­tor, though trended lower in man­u­fac­tur­ing.”

Ac­cord­ing to Fer­ley, FDI from Asia con­tin­ues to flow into min­ing, oil and gas ex­trac­tion and “man­age­ment of com­pa­nies and en­ter­prises” though with re­duced in­vest­ment in man­u­fac­tur­ing. Canada’s trade deficit with China in­creased in 2014 af­ter years of sta­bi­liza­tion as ex­port growth failed to keep pace with higher im­ports.

China is by far Canada’s sec­ond­largest trad­ing part­ner in terms of bi­lat­eral trade, with the share grow­ing be­tween 2013 and 2014, and is sec­ond only to the US in both im­ports from and ex­ports to China.

As a per­cent­age of over­all FDI, funds com­ing from China re­main a small share — 3.4 per­cent — of over­all for­eign in­vest­ment in Canada, ac­cord­ing to Sta­tis­tics Canada.

Fer­ley also ad­dressed Canada’s mer­chan­dise trade deficit with China, which in­creased in 2014 af­ter years of sta­bi­liza­tion.

Ex­port growth failed to keep pace with higher im­ports, “while twoway trade in ser­vices has also been grow­ing steadily, with growth in ser­vices ex­ports to China re­cently start­ing to out­pace Cana­dian im­ports of ser­vices from China, re­sult­ing in Canada run­ning a trade sur­plus in ser­vices over the last two years through 2013,” Fer­ley added.

The top five of six Cana­dian ex­ports to China are re­source-based goods, in­clud­ing pulp, pa­per and paper­board, oil seeds, min­eral ores, wood and wood prod­ucts, min­eral fu­els, ma­chin­ery and me­chan­i­cal ap­pli­ances.

The top Chi­nese ex­ports to Canada are elec­tri­cal prod­ucts and ma­chin­ery and, to a lesser ex­tent, con­sumer goods, in­clud­ing elec­tri­cal and elec­tronic ma­te­rial and equip­ment, ma­chin­ery and me­chan­i­cal ap­pli­ances, fur­ni­ture, toys, games, sport­ing goods and knit­ted and wo­ven cloth­ing.

Donna O’Reilly, RBC re­gional vice-pres­i­dent of com­mer­cial bank­ing for Greater Toronto, said that the eco­nomic brief­ing was a good way to celebrate the strong eco­nomic and so­cial bond be­tween Canada and the Chi­nese com­mu­nity.

“Our coun­try is shaped by the more than one mil­lion peo­ple of Chi­nese de­scent who have made Canada home over the years,” said O’Reilly. “Whether it’s serv­ing new Cana­di­ans or mem­bers of the com­mu­nity who’ve been here for gen­er­a­tions, we’re hon­oured to have pro­vided fi­nan­cial ad­vice to the Chi­nese-Cana­dian com­mu­nity for al­most 90 years.”

LI NA / CHINA DAILY

Paul Fer­ley, as­sis­tant chief economist of RBC bank, gives a pre­sen­ta­tion on the cur­rent Cana­dian econ­omy, with a fo­cus on Cana­dian eco­nomic re­la­tions with China at a media brief on Tues­day in Rich­mond Hill.

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