China's State-Owned Enterprises and Canada's Foreign Direct Investment Policy

In: Canadian public policy: Analyse de politiques, Band 43, Heft S2, S. S29-S44

Abstract

As Canada becomes more of a destination for Chinese outward foreign direct investment (FDI), Canada's review policies should incorporate international best practice based on an accurate understanding of the evolving regimes in China governing foreign direct investment FDI and its state-owned enterprises (which account for two-thirds of China's outward investment). This article focuses primarily on Chinese state-owned enterprises (SOEs) in both an international and a Chinese context. What is driving their outward investments and those in Canada in particular? Does Canada's policy response accurately account for the evolving regimes in China? This article concludes that China's regimes governing FDI and SOEs are becoming more transparent and market oriented whereas Canada's policies, until late in 2016, have remained opaque and interventionist. However, the investment hub proposal made recently portends some warming and greater transparency.