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Simple Deal: Canada Gets Money, and China Gets Canada

Posted: 02/13/2012 11:38 am

Our security elites know better, but they're not talking.

Most Canadians understand why our political and business leaders have been doing everything they can to noisily sign trade agreements and commercial deals with China. We might even agree with some of it.

Who doesn't like pandas and jobs? Canada's China play certainly makes some tactical sense, at least in the short term. But it's the long term that poses the problem.

The threat to Canada's viability as a sovereign nation that is embedded in a closer relationship with China lies not in the tactics, but in the strategy.

The security sector in Canada is populated by a lot of smart people: intelligence experts, current and former military leaders, defence-industry executives, prominent academics, and journalists. They cut their teeth working closely with U.S. and UK security agencies and military forces -- our traditional imperial allies. And they have monitored the economic ascendance of China very closely, informed by a continuous, thick, real-time flow of data and analysis.

What, actually, do they know? Above all, they understand that China seeks predictable, permanent access to the commodities it needs, through decisive influence over the national economies that house those resources.

And our security experts recognize that China deploys a creative mix of methods to achieve these objectives, including:

1) Espionage: Human spies who, among other things, use sex to motivate their sources, cyber spies that break into online systems to steal secrets, and front companies that are positioned in pivotal sectors like oil -- espionage is a favorite tool in the Chinese economic toolbox;

2) Equity Investment: Direct investment by state-controlled Chinese firms -- at first in small and unremarkable amounts, and, later, through large and influential (often with veto rights) equity stakes -- in foreign companies in the energy, mining, finance, and communications sectors;

3) Debt investment: China's offering of large lines of credit to local firms or governments, sometimes targeting specific sectors or projects, or else made generally available, is a method that is evident in poor and rich countries alike;

4) Use of Chinese labour: One technique here is to require that workers on, say, an Australian mining project speak Mandarin fluently, a measure that inevitably results in Chinese workers populating project enclaves while limiting local employment benefits;

5)Construction of government buildings: Chinese companies have built new headquarters for host -government ministries, including, alarmingly, those of the Defence ministries of some poor countries;

6) Labeling opponents "enemies of the state:" In an irony of ironies, this method is catching on in Canada, along with its moronic twin label, "foreign funded radicals"; and

7)Waiting: More important, China is very good at waiting, over decades and even over generations, for the cumulative efforts of their methods to take full effect. Taiwan is the classic case here. However, the list of other countries where this waiting game is playing out is growing.

One of these countries is Australia, which has been grappling with the effects of increased trade and investment with China. A recent business press headline encapsulated the grand bargain now under public debate: "The deal is simple. Australia gets money, and China gets Australia." With its small population and open, resource-rich economy, Australia has much in common with Canada.

In recent years, fears of China's economic might and lack of sustainable local economic benefits have turned public opinion, and even the preferences of Australian investors, against further economic integration with China. Indeed, in late 2011, almost 60 per cent of Australians approved of U.S. leadership in the ASEAN region, while only 23 per cent approved of China's leadership role in the region.

Our spooks and warriors know all this and much more about China. But on this file, right now, they are looking the other way.

Why have they gone quiet?

Maybe the security people are confused, internally gridlocked. After all, these are the same folks who are taking us into the North American security perimeter that is led by our erstwhile best superpower friend, the United States. Now we're playing with America's rival. Still, our security sector has proven many times it can handle (and, indeed, often creates) ambiguity, so that can't be the reason for its failure to speak up.

Or perhaps our security elites have seen the sheer strength of the Chinese intelligence network and war machine and they have already thrown in the towel. This is very unlikely, though. For whatever critique we may hold of them and their deeds, our security specialists aren't cowards.

A better explanation, though, involves the upcoming federal budget.

It could be that, in order to limit the damage they would otherwise sustain from the government's intended cuts, CSIS, the Department of National Defence, related agencies and firms, and the security sector's associated talking heads, have simply decided to sit this one out on the sidelines, to take a pass. The price for raising the hard questions on China could be too high.

Nor is the long game a political priority, it would seem, for Stephen Harper. It's a reasonable bet that he'll be gone by the time the full impact of China's deep imperial reach fully penetrates the critical sectors of our economy. By 2020, China is widely expected to become the world's largest economy.

In the 30 years between 2020 and 2050, coping with stepped up economic incursions and acquisitiveness by China could well become the prime function of the Canadian state on almost every important policy front.

My question to our security elites, therefore, is simply this: What is your plan for ensuring Canada remains a viable sovereign nation while it strengthens its economic ties with China?

We need you to come clean with Canadians.

Speak up.

 

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02:26 AM on 02/15/2012
Approximately 45 years ago I sat in a lecture hall and listened to a gentlemen with views echoed by professsor Jackson- only he was lamenting about Canada selling out to American interests and how the Star Spangled Banner would soon be seen on our government buildings. That has not happened, we are still Canadians, least I think so.
So now its China, and they do have lots of cash to invest, and at present, unlike the Trudeau era we are open for business (remember FIRA?). China also represents the largest market in the world, over a billion people with money and a hunger for imported goods.
So, they want to talk business-GOOD!
10:35 AM on 02/14/2012
The problem of North American economic strategy is that it is short-term, at most the duration of the term of Prime MInister or President, if this person does not stupidly believe in letting free markets decide everything. And meanwhile, we learn that Chinese hackers had access to just about everything in Nortel for ten years!
07:16 AM on 02/14/2012
Trudeau opened a door and we started using the model of the minority class ruling the civil service; can you say Mandarin Syndrome? The top down system of governance and ever growing violations of human rights seems more in line with our government embracing the giant Panda (Trojan Horse) rolling through our gates!

Either way, we do not live in a democracy and it is high time people started to realize that they MUST stand up and act together if we are to save our free way of life or suffer the fates of slavery as in China.
02:12 AM on 02/14/2012
If our government was truly democratic and truly run by us the people then we would never have things hidden from us by government because we indeed would be the government. It is not a matter of ideology, or a matter of personal interest. The undemocratic practices of the canadian government in dealing with the issue of selling our oil to china should be appalling to all Canadians. It is not our responsibility as citizens to back corporations because they are supposed to grow and "help" us, it is our responsibility to keep them in line. We must protect our rights, and not allow ourselves to become the slaves of a foreign government that has no respect for rights. Imagine the increase in production, the increase in labour, the increase in standards of living in this country if we stopped getting everything brought in from china and started manufacturing a small percentage of those goods in Canada. As it is now, we are set to be exploited in the most traditional sense. Empires exploit their colonies by extracting raw materials and then selling manufactured goods back to the colonies. This is no different than what is happening now. We sell our resources to china, and buy back the things they produce.
01:17 AM on 02/14/2012
Nationalize all resource companies, but before we do that, we better have nukes pointed south, and now, at China.
We need a revolution. Nationalism is not a dirt word. Neither is socialism.
photo
HUFFPOST SUPER USER
Kristopher Leang
training to take down the elite
06:47 PM on 02/14/2012
agreed amazing words
12:51 AM on 02/14/2012
Nice headline, in a somber way. I would add "Actual Deal: Canadians Become New Slave Labor Force, Chinese Corporations get Canada, it's Resources, and the Money"

It's really time to realize Canadian sovereignty is in it's final stages, on it's death bed. Canada has been and continues to be completely sold out to the foreign money powers and that is the price Canadians can reflect on paying for all of the recent years of "growth" and "progress".
08:59 PM on 02/13/2012
Our governments have become Corporatists (http://www.answers.com/topic/corporatism) and in Canada we have what appears to be a Corporatocracy (http://www.answers.com/topic/corporatocracy) not a democracy.

In fact it seems once a governing party gets a majority it becomes a democratic dictatorship in that they stop listening to the people and only follow their own agenda at times to the detriment of the people.
http://www.urbandictionary.com/define.php?term=democratic%20dictatorship

Governments need to stop being led around by the corporations and ultra-rich and start championing for us the poor, working and middle class, after all it is us who vote them in, it is us who they should be listening too.

The poor, working poor, working and middle class have lousy lobbyists, unlike the wealthy and of course China who have the best that money can buy.
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canuckistaneh
Science!
12:30 AM on 02/14/2012
Fanned and faved. You are absolutely correct. We only have democracy for one day every 4 years. In between and during that time the general public is deliberately mislead and misinformed by the gov't and most of the media.
And nice beemer!
HUFFPOST SUPER USER
BigLittle
05:54 PM on 02/13/2012
"Harmonization" is a word in the Canuck language that means,
"You give us money and we change our way of life"
HUFFPOST SUPER USER
Skookum1
truth can't be bought, but lies sure can be sold..
10:01 AM on 02/16/2012
"He" (harmony) in Mandarin (pronounced like "her" without the "r") was featured during the Beijing Olympics opening ceremony. Conformity, obedience, coordination, the sublimation of the individual to the collective/corporation, the joy of servitude.

"Chinese people share the same values as Canadians" we were told when "the influx" began....yeah, right.......well, since they want us to change our culture so they can increase their business and social presence here, ultimately they will be right. Another self-serving prophecy brought to fruition by political and cultural engineering.