March 28, 2017
Canada’s approval of a Chinese takeover deal originally blocked due to national security concerns could signal Prime Minister Trudeau’s government is willing to open its doors to more foreign investments in what “appear to be sensitive sectors,” Osler partner Peter Glossop tells The Globe and Mail. In his article, author Steven Chase outlines how Hong Kong-based O-Net Technology Group recently got the go-ahead from Trudeau’s cabinet to acquire ITF Technologies of Montréal. The approval marks a major shift in Canada’s approach to Beijing, and is the first time an investment by a foreign enterprise has been rejected and then subsequently approved by the Canadian government, according to the article. Peter, a partner in Osler’s Competition Practice Group who specializes in international trade and investment law, says this could draw more Chinese investment.
“[Canada’s] government does appear to be open to investments in what appear to be sensitive sectors even by investors whom you might think would be disqualified because of apparent connections to a foreign government — in particular the Chinese government,” Peter tells The Globe and Mail.
The article outlines how Stephen Harper’s Conservative government originally rejected the takeover deal in 2015 on the grounds that it would “undermine a technological edge that Western militaries have over China,” according to the article.
To read more about this potential shift in Canada’s approach to foreign investment, read Steven Chase’s article “Liberal green light for Chinese takeover deal a turning point for Canada: experts” in The Globe and Mail.