Showing posts with label Canada China relations. Show all posts
Showing posts with label Canada China relations. Show all posts

Monday, July 23, 2012

Chinese giant CNOOC pays over 15 billion U.S. for Nexen

Calgary based oil producer Nexen approved a takeover bid of $15.1 billion U.S. by Chinese state-owned oil producer CNOOC Ltd. The price per share would be $27.50 a full two thirds higher than the average price over the last twenty days. Nexen is the 12th largest energy producer in Canada with an output of about 213,000 a barrel oil equivalent per day. Nevertheless the company has not been doing that well of late. 

The company has a global presence. North Sea production has just been hit by a new UK tax. Drilling in the Gulf of Mexico was delayed by the huge BP oil leak. It was also forced to abandon a project in Yemen. Even in Canada at Long Lake planned output has not been reached. In the second quarter net income for Nexen fell to only $109 million, a decline larger than analysts predicted. The company earned just 20 cents a share in the second quarter down form a year earlier. Never mind the gloom, China needs oil and is willing to pay a premium price to guarantee a secure source of supplies.

 The troubled Long Lake project provided China the first stage of the later bid. Back in November of last year CNOOC bought OPTI Canada Inc. a company that held a 35 per cent stake in the Long Lake project. CNOOC has already spent 2.8 billion in Canada. China has been moving cautiously with takeovers after a failed takeover bid for UNOCAL corporation in 2005. No doubt there will be considerable debate about the Nexen takeover. The deal will have to pass through a process of evaluation under Canadian foreign ownership rules

  CNOOC said it would retain the existing staff and management and also make Calgary the headquarters for North and Central American operations. The company also promised it would list shares on the TSX and fund oll sands research at Canadian universities. All of these moves may help the company gain approval for the takeover. Already a number of Asian companies have invested in Canadian energy projects. Athabasca Oil Sands Corp. earlier this year sold a 40 per cent interest in two projects to PetroChina Co. Last fall Sinopec bought Daylight Energy Ltd. for a price tag of $2.2 billion U.S. The giant Malaysian firm Petronas bought Progress Energy Resources for $5.5 billion in June of this year.

The Canadian Prime Minister Stephen Harper is very much pro-business. Harper has often been a critic of China but of late he seems to be interested in tapping into Asian markets and pools of Asian capital to help develop Canadian resources. Canada has traditionally been a supplier first and foremost for the U.S. market. NAFTA cemented this relationship. However Harper seems to have realized that diversifying markets and sources of investment would be beneficial for Canada. The Nexen deal will be a test of these policies. 

The Nexen takeover must be approved by two thirds of shareholders. It is subject to an almost half a million dollar break fee. Not all foreign takeovers are approved. When BHP Billiton of Australia tried a hostile takeover of Saskatchewan-based Potash Corp the deal was eventually blocked by considerable resistance from Potash management and the Saskatchewan premier. Some corporations are supposedly strategic assets for Canada. Perhaps Nexen will be another strategic asset although the government has not yet defined what the term means.

 Harper is likely to receive the most pressure to block the bid from the U.S. The U.S. will not look kindly on its Asian competitor securing supplies of scarce resources from its northern neighbor. The question is whether business prevails over politics or perhaps whose business interests prevail. For more see this article..

Friday, February 9, 2007

Huseyin Celil is actually a fugitive from a Chinese Jail!

More background on the case. I thought that Celil was actually in jail in China. He escapes from jail and is given refugee status here rather than being extradited. I wonder what would happen if a person jailed for terrorism in the US fled to Canada. Would we give him refugee status and citizenship! In a pig's eye. This is from the Toronto Star

PM vows to help jailed imam


Poor relations with China have hindered efforts to help Canadian, Liberal says

Feb 09, 2007 04:30 AM
Richard Brennan
Ottawa Bureau

OTTAWA–Prime Minister Stephen Harper says he won't let Huseyin Celil languish in a foreign jail as the former Liberal government did with Maher Arar.

The opposition Liberals have been pressing the government to contact senior Chinese officials to insist that the Burlington imam's Canadian citizenship be respected.

"We view Mr. Celil as a Canadian citizen. At all opportunities, we have taken the time to raise his case, to express our concerns, to demand justice be done," Harper told MPs yesterday during question period.

"Every single time ... the Liberal party has said we should say nothing, we should do nothing, we should take no action, just like they did with Mr. Arar," Harper said.

The Harper government recently paid $10.5 million in compensation to Arar, who was arrested in New York in 2002 and deported to Syria – where he was jailed for almost a year and tortured – after the RCMP gave U.S. officials incorrect information on his being a terror suspect.

Celil's case has gained renewed national prominence after it was discovered last week that Canadian diplomats in China did not attend a court hearing where Celil described torture he endured at the hands of Chinese authorities trying to extract a confession of terrorism.

Celil, 38, was arrested last March 27 in Tashkent, Uzbekistan, where he and his family were visiting his wife's relatives. Three months later, he was turned over to the Chinese.

Celil was imprisoned in China in the mid-1990s, allegedly for political activities among the Uyghurs, a minority group of Muslims in Xinjiang province. He escaped and was admitted to Canada as a refugee in 2001.

Liberal MP Dan McTeague (Pickering-Scarborough East) yesterday called on Harper to intervene personally on Celil's behalf, but added such efforts might be hampered by the state of the Conservative government's relations with China.

"We know that (Harper) can admit now his ability to stand up for Mr. Celil was so severely limited when he accused China of spying and turned a recent meeting with the Chinese president into an international farce," McTeague said.


Helena Guergis, secretary of state for foreign affairs, noted China has signed the United Nations convention against torture and "we expect that it will live up to its UN obligations.

"We have, in fact, directed officials there to head to the site ... to gain contact with Mr. Celil in order to give him consular services to which he is entitled as a Canadian citizen," she said.

More on Huseyin Celil Case

Interpol had worldwide arrest warrant for Celil

This gives a little more background on the Celil case which is missing from the CBC report. It is from this blog.

Interpol has a worldwide arrest warrant on Celil before he turns to Canada: China

Honestly, I don't believe China would execute Celil. China wants so much to prove to Canada that it will honour diplomatic notes it issues -- coz the big fish is Lai Changxing.

Globe and Mail, Ming Pao, Business Edge - A senior Chinese official issued a sober warning to the Harper government yesterday over its criticism of his country's human-rights policies, saying Canada's trade and political relationships with China are falling behind.

"The economic relationship goes hand in hand with the political relationship," said He Yafei (何亞飛), the country's assistant minister of foreign affairs for North America.

"We need to have a sound political basis of mutual trust for the economic relationship to flourish. That's why we need to work harder to improve mutual trust."

The remarks came in a rare interview as Canada continued to express deep concern over the fate of a dual Canadian-Chinese citizen, Huseyin Celil, who is jailed in China.

According to the Chinese official stance, Celil is an active member of East Turkistan Movement, which is a terrorist organization defined by the United Nations. He Yafei added yesterday that Celil was issued "Red Notice" - the closest form of an international arrest warrant - by the Interpol before he got the Canadian citizenship.

What is a Red Notice?

According to the US Dept of Justice's criminal resource manual:

An Interpol Red Notice is the closest instrument to an international arrest warrant in use today. Interpol (the International Criminal Police Organization) circulates notices to member countries listing persons who are wanted for extradition. The names of persons listed in the notices are placed on lookout lists (e.g., NCIC or its foreign counterpart). When a person whose name is listed comes to the attention of the police abroad, the country that sought the listing is notified through Interpol and can request either his provisional arrest (if there is urgency) or can file a formal request for extradition.

Please be aware that if a Red Notice is issued, the prosecutor's office is obligated to do whatever work is required to produce the necessary extradition documents within the time limits prescribed by the controlling extradition treaty whenever and wherever the fugitive is arrested. Further, the prosecutor's office is obliged to pay the expenses pursuant to the controlling treaty. Those expenses, which can be quite high, will typically include the costs of translating the extradition documents and may include the costs of hiring local counsel to represent the United States. Further, these obligations, which remain until the fugitive is arrested or the Red Notice is withdrawn, may result in prosecutors who have succeeded the Assistant United States Attorney who originally requested the Red Notice having to prepare the documents and arrange for payment of hefty fees years after the fugitive originally fled from the United States. Therefore, it is important for prosecutors to make certain that the case is significant enough to warrant placing their offices under such a burden in deciding whether or not to request issuance of a Red Notice.

On Ottawa RCMP's website, it says: "RED NOTICE: Seeks arrest of fugitives for whom an arrest warrant has been issued and where extradition will be requested."
Yesterday, seated on a couch in a small room at an Ottawa hotel, He Yafei issued assurances that Celil will not be executed, and denied reports that Celil has been tortured. He Yafei added, however, that the Yafei Chinese government has no obligation to inform Canadian diplomats of Celil's next court date because the country does not recognize dual citizenships. Celil was in court last week accused of terrorist activities, but no Canadian diplomats were present.

Prime Minister Stephen Harper raised the Celil case in a recent meeting with Chinese President Hu Jintao while the two leaders were in Vietnam for a meeting of APEC.

It was the latest in a series of irritants that has included a decision by Secretary of State for Multiculturalism Jason Kenney to meet with the Dalai Lama, accusations that China is spying on Canadian corporations and a delay in talks on a strategic partnership the two countries signed two years ago.

In the interview with The Globe and Mail and CTV, He Yafei said that, although He Yafei believes the difficulties are temporary, there are clouds on the horizon.

"I cannot say Canada is squandering [the relationship] now, but in practical terms Canada is lagging behind in its relations with China," He Yafei said.

"Trade is growing, but not fast enough. Investment is growing, but not fast enough. The overall relationship has room for improvement."

Without a strong political relationship, long-term investments might suffer, He Yafei said.

"People need to have confidence in the country they are going to do business with."

The nations need to respect each other while the irritants are discussed, He Yafei said.

According to the latest World Bank methodology, China accounts for just over 15%of the world economy, compared to the U.S. at 20% and Canada at under 2%, said Stephen Poloz, senior vice-president and chief economist for Export Development Canada.

And with growth in China averaging over 10% of late, that means that China is contributing close to one-third of total global economic growth, according to Poloz.

He Yafei, who conversed easily in English and spoke without a translator, was in Canada for meetings with bureaucratic counterparts. He Yafei began his trip in Vancouver this week. He Yafei said the two countries have a deep-rooted and close relationship, but both need to do a "better job of PR, letting people know what kind of relationship we have.

"We are determined to move ahead despite some difficulties we are experiencing lately. But it's temporary."

He Yafei added that he expected that talks on the Strategic Partnership would be pursued further later this year.

In the House of Commons yesterday, Liberals said the Conservative government's cold war with China is ruining any chance to get Celil sprung from prison.

Liberal MP Dan McTeague said it is impossible for the government to stand up for Celil when the Chinese view Harper as "something of a bumbling cold warrior."

Instead of treating China with respect, McTeague said, the government "views Canada's second-largest trading partner with such blatant suspicion and contempt."

But Harper shot back that the Liberals themselves have a poor record of standing up for the rights of Canadians imprisoned abroad, citing the case of Maher Arar.

The Liberals have a say-nothing, do-nothing diplomatic approach towards foreign countries holding Canadian prisoners, Harper said. The Liberals would "take no action, just like they did with Arar, and every single Canadian citizen they just forgot about when they were in office."

Meanwhile, behind the scenes, Canadian diplomats have been urging the Chinese to forget the dispute about Celil's citizenship and treat this as a humanitarian case, a senior federal official said.

Celil was born in China and immigrated to Canada. He Yafei was travelling on his Canadian passport when Uzbek authorities arrested him and deported him to China.

He Yafei said China has assured Uzbekistan that Celil will not be executed. He Yafei also refuted allegations that Celil had been tortured.

"We have given assurances to Uzbekistan. That assurance will stand."

He Yafei added that China would inform Canadian authorities after tHe Yafei verdict on Celil comes down.

"Of course, as a courtesy, we will brief your embassy officials, but as a matter of courtesy, not as a matter of obligation," He Yafei said.

Foreign Minister Peter MacKay, who raised the case during a meeting with his Chinese counterpart at the United Nations last year, was assured that the Chinese would not impose the death penalty and would keep Canada abreast of developments in the case as a humanitarian gesture, the senior federal official said. The official spoke anonymously because of the diplomatic and political sensitivity of the case.

"So our people are reminding Chinese [diplomatic] officials of what their foreign minister promised," the official said.

McTeague and his Liberal colleague, Marlene Jennings, argued that the government would have much more influence with the Chinese if the Conservatives hadn't started on poor political footing with Beijing.

See also:
Beijing flying in senior diplomat to discuss Celil's case with Ottawa
Why China doesn't recognize Celil as Canadian

Posted by ken at 7:02 PM 0 comments

Labels: Celil, Chinese Canada relations, Human rights in China


Harper chides China over economic threats

While it is reasonable that Harper complain about Celil's rights as a Canadian citizen being violated he has been remarkably quiet about condemning the US for nabbing Maher Arar from a connecting flight to Canada in New York and rendering him for torture and interrogation in Syria. He has said nothing about the US authorities lies to Canadian intelligence authorities. They did not admit he was bound for Syria until after he was already on a plane to Jordan. They said he was in jail in the US.

Harper chides China over economic threats
Last Updated: Friday, February 9, 2007 | 5:53 PM ET
CBC News
Prime Minister Stephen Harper warned China Friday not to threaten Canada with economic repercussions for bringing up the Asian country's human rights record and standing up for the rights of Canadians abroad.

"I would point out to any Chinese official that just as a matter of fact, China had a huge trade surplus with this country, so it would be in the interest of the Chinese government to make sure any dealings on trade are fair and above board," Harper told reporters Friday in Halifax.

The prime minister's comments came in response to statements from a Chinese official, who warned that Ottawa's criticism of China's human rights record could be straining relations between the two countries.

'When a Canadian citizen is ill-treated and when the rights of a Canadian citizen need to be defended, I think it's always the obligation of the government of Canada to vocally and publicly stand up for that Canadian citizen.'
—Prime Minister Stephen HarperHarper also dismissed reports suggesting trade between Canada and China has been hurt by a lack of trust between the two countries and hit out at critics from within Canada's own political ranks.

"There are those in the opposition who will say, 'You know, China is an important country, so we shouldn't really protest these things … so maybe someday we'll be able to sell more goods there,'" Harper said.

"I think that's irresponsible. I think the government of Canada, when a Canadian citizen is ill-treated and when the rights of a Canadian citizen need to be defended, I think it's always the obligation of the government of Canada to vocally and publicly stand up for that Canadian citizen.

Continue Article

"That is what we will continue to do."

Harper was referring to the case of Huseyin Celil, a Canadian activist jailed in China for alleged terrorist links.

Diplomatic counsel denied
Celil, 37, was arrested in March in Uzbekistan, then extradited to China three months later to face charges he had originally been arrested for in the early 1990s.

A Chinese Foreign Ministry spokeswoman said Thursday that Celil's case is being handled according to Chinese law and is not subject to consular agreements.

Harper described the move as illegal and insisted Chinese authorities have yet to provide any evidence of wrongdoing.

"They continue to deny his Canadian citizenship, which was granted under our law and international law," Harper said.

"So we continue to protest this at every level, up to and including my own (recent) meeting with the president (of China). We will continue to vocalize these concerns."

Celil made a court appearance last week in Urumqi, the capital of China's western Xinjiang region. There was no Canadian diplomat present — a violation of Celil's rights as a Canadian citizen.

Celil's relatives have said they believe he is being tortured.

Celil, a member of the Uighur minority group in Xinjiang, was born and raised in China. Chinese authorities have long maintained that Uighur militants are leading a violent Islamic separatist movement.

With files from the Canadian Press

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