A new poll released today by the University of Alberta's China Institute suggests the majority of Albertans don't like the idea of China buying up natural resources companies.
The poll comes as the federal government is poised to decide on a proposal from a Chinese state-owned company to buy Calgary-based energy company Nexen.
The poll, conducted about two weeks before the oil-giant CNOOC made its friendly bid for Nexen public on July 23, asked Albertans for their attitudes toward China. Topics included trade, investment and even learning to speak Chinese.
The telephone survey's 1,200 participants were split evenly between Calgary, Edmonton and the rest of Alberta.
The survey found 59 per cent were in favour of exporting energy to China, with just 17 per cent opposed and 24 per cent not sure, but that support started to drop when it came to Chinese investment in the oil patch.
Participants were evenly split (37 per cent in favour, 36 per cent opposed) on whether they liked the idea of China having partial ownership in an Alberta resource company, but the majority — 64 per cent — were against full ownership. Just 15 per cent supported full ownership by China, with 21 per cent neither supporting nor opposed.
The federal government is expected to say soon whether the CNOOC-Nexen deal can go ahead or not. The deal was approved by Nexen shareholders Sept. 20.
Industry Canada turned down another proposed takeover by a state-owned enterprise late last week, when it rejected a $6.38-billion bid by Malaysian-owned oil company Petronas for Progress Energy.
In commenting on the government's decision Monday, Prime Minister Stephen Harper promised new guidelines soon on these type of takeover bids.
The poll was conducted by the University of Alberta's Population Research Lab. It is considered accurate within 2.8 percentage points, 19 times out of 20.
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Here are a few details of the major investment deal coming soon between Canada and China, as well as a list of what CBC chief political correspondent Terry Milewski calls a "small blizzard of incremental agreements," signed in Beijing. <em>With files from CBC</em>. (Diego Azubel-PoolGetty Images)
The Big One: FIPA
Prime Minister Stephen Harper called the foreign investment promotion and protection agreement (FIPA) between Canada and China the first "comprehensive economic agreement" between the two countries. In fact, what was signed by Harper and Chinese Premier Wen Jaibao in Beijing is not the final deal, but a declaration of intent: Now it must be legally reviewed and ratified by both governments, which for Canada will mean a debate in the House of Commons. Once both countries complete this process, it will need to be formally signed to take effect. This deal will protect Canadians investing in China, as well as Chinese investors in Canada, from "discriminatory and arbitrary practices." Once in place, investors can have more confidence that rules will be enforced and valuable business deals will be subject to predictable legal practices. Harper told reporters in Beijing he "absolutely" expected that it will make a "practical difference." "The agreement does not override existing Canadian law in regard to foreign investment and foreign investment review," Harper said. "Those laws remain in place." Negotiations for this agreement took 18 years, and key players in manufacturing, mining and the financial sectors were consulted to get to this stage. It's not unusual for Canada to have this kind of an agreement with a trading partner. FIPAs are in force with 24 other countries that trade with Canada, and active negotiations are underway with 10 other countries, according to the government's announcement. (Diego Azubel-PoolGetty Images)
The 'Blizzard' (By Sector):
(AP Photo/Valentina Petrova)
- A new protocol, building on a 2010 agreement to restore Canada's market access to the Chinese market for Canadian beef following the 2003 BSE outbreak and resulting border closures, to allow industrial beef tallow (fat) to be imported for the first time in almost a decade. China used to be Canada's top export market for tallow ($31 million in 2002), and now Canada has a shot at a share of the $400 million in tallow China imports from around the world. - A memorandum of understanding (MOU) on canola research, to address a recent fungal disease in canola and rapeseed that threatens Canada's valuable trading relationship with China in canola. - On Tuesday, Chinese aquaculture feed company Tongwei announced it will increase its purchase of Canadian canola by up to $240 million per year by 2015. (DAVID BUSTON/AFP/Getty Images)
- A MOU between Natural Resources Canada and the Chinese Academy of Sciences to collaborate on scientific research on sustainable development of natural resources. The government release touts benefits including new technologies for resource firms, carbon emissions reduction strategies, reduced environmental impacts and natural hazards from resource development, and new opportunities for Canadian suppliers of equipment and services. - A MOU spelling out a "framework" for Parks Canada and China's state forestry administration to collaborate and share scientific expertise in the management of national parks, natural reserves and other protected areas. The agreement includes language around ecological restoration, conservation measures for endangered wildlife, wetlands development, and the preservation of forests and wetlands. (<a href="http://www.flickr.com/photos/47096398@N08/" target="_hplink">Flickr: eleephotography</a>)
- A continuation of the MOU, first signed in 2001 and renewed in 2006, on energy co-operation to "engage China on energy issues" through a Canada-China joint working group on energy co-operation, chaired by Natural Resources Canada and China's national energy administration, which is responsible for Chinese energy policy. The working group oversees joint research projects, exchange of expertise, and co-operation between energy companies in both countries, including the promotion of energy efficiency and renewables. It aims to both attract capital investment and improve market access for Canadian energy resources and technology. (MARK RALSTON/AFP/Getty Images)
Science and Technology
- Approval of seven projects, valued at $10 million, under the Canada-China framework for co-operation on science and technology and innovation, including: a diagnostic kit for acute kidney injuries, a wind energy seawater desalination system, a waste heat-recovery system to help oil refineries consume less fuel, new solar cells for renewable energy panels, a real-time multi-sensor navigational tracking device for hand-held devices, a blue-green algae bloom warning system and "next generation" large-scale geographic information systems. - Two more calls for proposals, valued at $18 million ($9 million from each country) for joint research under the same framework. These proposals are for the development of "innovations with high commercial potential" in the areas of human vaccines and clean automotive transportation. The Canada-China joint committee on science and technology, made up of individuals from industry, academia and government, sets the priorities and oversees these projects. (To date, 21 projects ranging from nuclear power to AIDS drugs, to clean technologies for pulp and paper have received some $28 million in funding.) (TOSHIFUMI KITAMURA/AFP/Getty Images)
- A renewed MOU extending and modifying the Canada-China scholars' exchange program, which has seen 900 students travel between Canada and China since 1973. New eligibility rules and scholarships will be in place for the next round of competitions in 2012, including eight to 12 Canadian scholarships for Chinese professionals and 20 awards for Canadian university students. (<a href="http://www.flickr.com/photos/plutor/" target="_hplink">Flickr: Plutor</a>)
The federal government approved the takeover of Alberta-based Celtic Exploration by Texas-based ExxonMobil in February 2013. The deal was believed to be worth $3.1 billion.
Calgary-based energy leader Nexen is in the middle of a massive takeover bid worth more than $15-billion by China energy China National Offshore Oil Company, or CNOOC. The deal is currently being reviewed by Canadian Industry Minister Christian Paradis.
Petronas' Progress Energy Takeover
Stakeholders in natural gas producer Progress Energy Resources Corp. have approved a $6-billion takeover of the company by a subsidiary of Malaysia's state-owned Petronas. Meanwhile, the company said the sale to Petronas Carigali Canada Ltd. is not being opposed by the federal government under the Competition Act, which requires major takeover deals to be of net benefit to Canada.
Kuwait's state-owned petroleum company, Kuwait Petroleum Corp., has reportedly signed a preliminary deal to invest as much as $4-billion in a joint venture with Athabasca Oil Corp., for an investment to develop some of Athabasca's (TSX:ATH) oilsands properties in northern Alberta.
In 2009, Athabasca sold a 60 per cent interest in its MacKay River and Dover oilsands lands to PetroChina. In Early 2012, Athabasca exercised its option to sell the rest of MacKay River to PetroChina, making it the first oilsands operation to be fully controlled by a Chinese company.