Canada and China to boost bilateral energy investments
Canada estimates that foreign investments in its booming energy sector could hit US$500 billion over the next decade.
Canada and China, however, agree that some obstacles prevent them from reaping the full benefits of trade and investment in each other’s natural resources, including energy.
A government study by officials from both countries said unclear investment rules are hampering trade between Canada and China. The study said Canadian and Chinese stakeholders have highlighted the need for increased regulatory clarity, efficiency and predictability in the context of direct investments in each other's countries.
"Resolution of these obstacles will be essential to improving market access and facilitating two-way trade and investment in the natural resources sector,” said the report.
Chinese energy firms are particularly interested in the Canadian oil and gas sector and have invested more than US$7 billion in the last year alone. Alberta's oilsands are the world's third largest proven reserve of crude, and China’s bid to acquire ownership of Canadian oil and gas firm Nexen is China's largest takeover bid to date.
"Over the coming decades, massive investments will be required to further develop Canada's natural resources potential. China's growing investment interest in Canada's natural resources is adding to the diversity of domestic and foreign funding sources available," said the report.