FACE TO FACE: Should the feds OK the Chinese takeover of an Alberta oil company?
Ottawa's forthcoming decision on whether to approve China National Offshore Oil Company's $15.1-billion takeover bid of Nexen poses quite the dilemma for us right-of-centre free enterprisers.
Foreign investment, after all, is good, but CNOOC being a state-owned enterprise is concerning.
Political commentator Gerry Nicholls put it best in a discussion I had with him last week: "The Conservative rank and file hate communists. And they expect the 'right wing' Harper government to hate them too," he said. "If this were 1972, Prime Minister Harper would have no problem reaching a decision: He would tell the Chinese and their commie corporation to take a hike. But today, it's bad business to insult reds who have wallets full of green."
While dealing with the "reds" seems unpalatable, the benefits of the $15.1-billion friendly takeover outweigh the risks.
For starters, Canada is a net exporter of its natural resources and relies on foreign capital to develop those resources. We already have foreign ownership in our natural resource sectors: Petro China Co. now has full ownership of an oil sands development project with their purchase of Athabasca Oil Sands Corp. In October, Sinopec International, China's largest refiner, announced it had agreed to buy Canadian based Daylight Energy Ltd. for $2.1 billion.
Closer to home, Weyerhaeuser - an American company - bought MacBlo in 1999, giving it access to vast tracts of Canadian forest
And remember, these investments into cash-strapped Canadian companies mean employment and financial spin-off effects in our communities across the country.
Certainly, there are risks.
Last week, the Canadian Security Intelligence Service issued a report noting that certain state-owned enterprises and private firms "with close ties to their home governments... received clandestine intelligence support for their pursuits here."
But these risks can be mitigated.
Harper has stated Chinese companies must play by our rules. That means they must act like a free-market company and follow all Canadian regulations, environmental and otherwise.
Foreign ownership of our natural resources is never going to be a popular proposition among Canadians. But poll after poll suggests Canadians are most concerned about jobs and the economy.
Foreign investment, including the Nexen deal , is good for our economy.
Andy Radia is a Coquitlam resident and political columnist who writes for Yahoo! Canada News and Vancouver View Magazine. He has been politically active in the Tri-Cities, having been involved with election campaigns at all three levels of government, including running for Coquitlam city council in 2005.
