China slams Canada’s suppression of local Chinese companies, warning of harm to global mining industry
Published: Nov 06, 2022 04:20 PM
China and Canada Photo: VCG

China and Canada Photo: VCG

A spokesperson of China's Ministry of Commerce (MOFCOM) on Sunday slammed Canada's suppression of three Chinese companies, and vowed to take all necessary measures to protect Chinese businesses' legitimate rights.

Canada's government on November 2 ordered the three Chinese mining companies to divest their stakes in three lithium miners in Canada. When asked about the move, the MOFCOM spokesperson said that China opposed Canada's interference targeting normal bilateral business cooperation in the name of national security. 

The spokesperson stated that China and Canada are both vital players in the global mineral supply chain, and Chinese companies' investment in the Canadian mineral sector is a commercial act, based on the principles of the market economy and the development of enterprises. 

The spokesperson added that the Canadian government's suppression was a generalization of national security and a deliberate act of erecting trade and investment barriers, which violate market rules.

The move also affects global investors' confidence in Canada's business environment, and it will harm the stability of the global mineral supply chain as well as the development of the industry, the spokesperson said. 

China vowed to take all necessary measures to protect the legitimate rights of Chinese enterprises, and it urged Canada to stop politicizing trade issues, and to provide a fair, just and non-discriminatory business environment for investors from all countries including China.

Citing national security, Canada's federal government said on Wednesday that Sinomine (Hong Kong) Rare Metals Resources Co, Chengze Lithium International and Zangge Mining Investment (Chengdu) Co should divest their stakes in three separate lithium miners.

An industry insider said that China is one of the largest lithium-producing countries, ranking third after Australia and Chile. 

China-Canada cooperation in the lithium industry is limited, and the result may have relatively less of an impact on China's lithium development.

Global Times