The China Investment Corporation (CIC), one of the world's largest sovereign wealth funds, is set to become a powerful landowner in British Columbia if a $100 million deal with Island Timberlands, the second-largest owner of private forests in the province, goes through. The Ancient Forest Alliance (AFA) is concerned that closure of the deal, especially in light of Canada's pending ratification of the Foreign Investment Protection and Promotion Agreement (FIPA), could have negative consequences for protection of BC's treasured old-growth forests, forestry jobs, and the rights of First Nations, according to an AFA press release.
“The Communist Party of China is about to become one of the biggest landowners in British Columbia if this deal goes through,” said Ken Wu, executive director of the AFA.
“In light of the proposed Canada-China investment treaty, this could be at the expense of BC’s environment, forestry workers and First Nations,” said Wu, adding, “Chairman Mao’s spirit is seemingly being channelled by Chairman Harper these days, as it’s hard to see how this proposed agreement will be a net benefit to Canadians.”
Chinese investment in Canadian resources has taken on a new significance since the Harper government announced the possibility of entering into a strict trade agreement with China. The deal, an investment treaty with a 31 year lifespan, would strongly dissuade municipal, provincial and federal governments from making any decisions that might affect the profit margin of Chinese investors.
“The China-Canada FIPA would allow Chinese investors in Canada to sue the federal government for lost profits due to new regulations, taxes, and environmental laws enacted federally or provincially. This would undercut the ability of future federal and provincial governments to enact new regulations or policies that might result in a lawsuit by Chinese companies which are accountable to the Chinese government,” says the press release.