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Prime Minister Stephen Harper announces he will visit China in early February as Chinese Ambassador Zhang Junsai looks on at his office in Ottawa Wednesday Jan. 11, 2012. (Adrian Wyld / THE CANADIAN PRESS) Prime Minister Stephen Harper announces he will visit China in early February as Chinese Ambassador Zhang Junsai looks on at his office in Ottawa, Wednesday, Jan. 11, 2012.

Oil on the agenda for Harper's China trip

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CTV News Video

CTV's Question Period: Risky relations with China?
Expert panelists Wenran Jiang with the University of Alberta, and Gordon Chang, author, discuss Canada's opportunities and risks in forging a lasting energy relationship with China.

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Prime Minister Stephen Harper announces he will visit China in early February as Chinese Ambassador Zhang Junsai looks on at his office in Ottawa Wednesday Jan. 11, 2012. (Adrian Wyld / THE CANADIAN PRESS) Prime Minister Stephen Harper announces he will visit China in early February as Chinese Ambassador Zhang Junsai looks on at his office in Ottawa, Wednesday, Jan. 11, 2012.

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Prime Minister Stephen Harper announces he will visit China in early February as Chinese Ambassador Zhang Junsai looks on at his office in Ottawa Wednesday Jan. 11, 2012. (Adrian Wyld / THE CANADIAN PRESS)

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Date: Sun. Feb. 5 2012 10:39 PM ET

Chinese investment in the Canadian energy sector is helping create jobs, but that doesn't mean the country is willing to put its sovereignty up for sale, Foreign Affairs Minister John Baird says.

Baird and Prime Minister Stephen Harper head to China Monday on a visit that will cover a wide range of economic topics, including shipping Canadian oil to the energy-thirsty Asian giant.

"We should be very clear we don't want anyone to own all of a Canadian commodity, all of a Canadian natural resource," Baird told CTV's Question Period Sunday when asked about billions of Chinese investment in the oil sands.

"We think it's been beneficial . . . but at the same time I think you can always count on the Government of Canada to stand up for Canadian values and stand up for Canadian sovereignty," he said in the interview from Tel Aviv.

Although meetings with Chinese President Hu Jintao and Premier Wen Jiabao will focus on oil and other economic opportunities, Harper and Baird will also raise China's dismal human rights record and its veto of a UN Security Council resolution on Syria.

"There are many areas where we have a very good relationship with China. Obviously, we have some profound disagreements and we'll certainly take the opportunity to have a good dialogue with them on those issues," Baird said.

A top federal official confirmed Sunday that Syria will be on the agenda as well as Iran and its nuclear program.

China: Good investment?

Two experts on China also appeared on Question Period Sunday offering reasons for and against increasing economic ties with the Middle Kingdom.

Wenran Jiang, founder of the University of Alberta's China Institute and a government adviser, said China represents about 40 per cent of the world's energy demand and Canada is long overdue getting into that market.

"The trip to China is an important one, other than the energy area, there is broader, bigger markets in other sectors that Canada has not explored," he said.

With rejection of the Keystone XL pipeline that would have delivered Canadian oil to the United States, it's time to open new markets for the country's resources, Jiang said.

But Gordon Chang, a contributor to Forbes and author of "The Coming Collapse of China", said Canada should tread carefully because China is heading for economic decline.

"You have plunging property prices, stagnant vehicle sales, accelerating capital flight, collapsing industrial orders and this is not just a short-term phenomenon," he said in an interview from New York.

China has enjoyed 35 years of uninterrupted growth and is now on a long-term downward path, he said, suggesting Canada will be able to sell some oil there but not as much as Canadians believe.

Jiang agreed China has problems, but said its economic fundamentals are strong, including lower debt levels compared with other industrialized nations, the world's largest foreign currency reserve and strong revenues.

"China has made a tremendous amount of progress in the past three decades. China is a complexity. China is struggling with itself in its political reform path," Jiang said.

But there's no imminent collapse in its future, he said.

Jiang also said the Chinese have a more relaxed attitude with regard to Canadian investment, pumping more than $15 billion into the energy sector in the last two years.

If the Northern Gateway pipeline to the west coast is delayed due to opposition, China can sell its oil production to the U.S. and buy additional crude on the open market, he said.

It's also unlikely the Americans will be upset about any new energy deals Canada strikes with China because the Keystone pipeline will eventually be approved, moving oil sands crude south, Chang added.

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Leader sheep
said

Our hypocrite leaders are playing cat and mouse eith China.


A Koster
said

An Economic Assessment of Northern Gateway, written by Robyn Allen, and submitted to the NEB on January 30,2012.. "The inter-relationships that occur when a producer, is a shipper, is a part owner of the pipeline, is an owner of refineries, supplier of condensate coming into Canada and owner of petroleum products distribution networks, must be included in the scope of such a review in order to identify where the desirable outcome of arms length market forces might be compromised." .. and talked about on the radio show 'the house' with Evan Soloman yesterday.. China's Influence on Canada's Energy Sector.. discussing China's $20 billion investment in the ownership of the oilsands and in the pipeline, how when Sinopec invested in Syncrude it insisted on a clause that restricts upgrading of the crude here in Canada, how jobs and growth in the economy are simply not there without at least a $2 per bbl increase in the price of crude every year for the next 30 years. It appears more than evident that under Harper, Chinese energy policy trumps Canadian energy policy which is supposed to be protecting our jobs, our resources, our environment.


Walter (Winnipeg)
said

PAUL -"Build more refineries in Canada" is the best idea. Sell the finished product.


I'mnoPig
said

Of course oil is up for discussion with China. What city and province does Mr. Harper represent? Oh ya, Calgary, Alberta. Gotta keep those party donations rolling in....


Iam
said

If you ever needed anymore proof of just how much of Canada China owns, well... Harper couldn't cancel his trip even if he wanted to.


James, Ontario
said

This will be interesting, we need to show the Obama administration that we're not going to wait around for them at our own expense. At the same time I hope this is a trump card that we don't actually have to play. We need to remember who our friends are. Our own refineries would the best solution but it's unlikely to really happen.

Gord
said

Seems that oil companies build refineries not the government--I wonder why they aren't??


alltheeggs
said

I agree, we should build our own refineries and/or update existing ones. That would create good Canadian jobs, and while the world is still mainly run on oil at least we could ensure that our standards are being followed. Also, as with other industries, doesn't the govt feel we should be prepared if there is a need to not rely on other countries (we no longer have any fruit/veg canneries). Just because they can do something cheaper, doesn't mean we should buy into it.


Sailor Girl
said

First it was G W Bush who travelled to China. Now, PM Harper promising all natural resources for China's use while Harper is neclecting to create value added jobs and industries within Canada. All this just that in some parts of the world someone might be able to afford to buy and buy to support economic growth. Buying cheap crab in the name of growing our economy doesn't work anymore. The old fashioned way of capitalism and alike economics to rely on growth of productivity (consumerism) through GDP is nearing its end. Accept it! Future is fair trade, micro businesses and growth through value added industries and greener technologies.


D in AB
said

Before Harper starts talking about China's human rights record, he best fix the problems here at home.


Reece
said

China and its 60 million empty condos, empty super malls and train and airports is NOT the solution for us to sustain prosperity. The open secret is that China is a nation that is going to collapse. Anyone here want to hazzard a guess why there are ghost cities in China? Why would they also be planning to build another 200 million condos? China is one gargantuan ponzi scheme and Harper better start asking those questions before he invests too much time on this loser scheme called China.


Canadian Bob
said

Harper put pressure on China? It will never happen. First off, China's investment in this country means Harper is but a puppet of circumstance. His mentioning China's Human Rights issues is probably pre-arranged with China as a way to console Canadians who believe in Human Rights, when in fact it is a moot issue for the Conservatives. With middle east issues around oil and the instability of their governments, I would rather see our government finance the building of refineries for Canada to supply ourselves first, eliminating the importing of any oil from off-shore countries. After we've taken care of ourselves, sell the surplus to China. Unfortunately Canada, the fact is that the oilsands are far from being Canadian owned, and no matter the government in Ottawa, we will be forced to comply with a host of environmentally disastrous demands so that investors can retrieve their product for their own people. That is where Canada went wrong, and unfortunately, Harper and Country is willing to sell off all oil interests, so look out BC, your province is expendable beyond your wildest beliefs, and as for environment, well, we all know that is not a concern for Harper whatsoever. Money, Money, Money. It's what drives a CONservative.

Sam
said

Harper shilling for the oil industry.Surely you jest! The communist Chinese government already owns much of the tar sands.We find ourselves in the remarkable situation where Eastern Canada is getting hit with soaring energy costs,its industrial base is being decimated because of the petro dollar, has refineries and its workers sitting idle and importing oil from overseas when we are one of the biggest oil producers in the world. Meanwhile Alberta and the feds want to put more of our natural resources in the communist hands.Sounds like a cheap drug store novel but it is our reality.Future generations will be cursing this crew!


DCI
said

Please tell me where all these new jobs will be.Just in the tar sands. Where the cost of living is so high, it's unreal. One bedroom apartment= $ 1700.00 to $ 1800.00 per month. WOW ! ! That's unfurnished too. But at least there is work in this area. Why are we sending all of our raw material to China? They have slave labour. Why not open our own manufacturing plants here in Canada? And give us the jobs. Yes, harper is correct. He is creating jobs... in China ! Menwhile our manufacturing sector is shutting down all over the country. I was watching, 'dragons den" the other day. And one of the dragons said to a inventor; " I can make one phone call to China and have your product made for .50 each. I was so happy when the man said, " NO ! " I want to employ our own people in this country. Right on....I for one are sick and tired of opening a product and it's made in China. No wonder they have no unemployment there. It's all here in Canada.Thanks for the jobs, Harper... Wake up and fix our economy first.


Sue
said

Oil for made in China trinkets I'm all excited I tingle all over.


Island Man
said

Baird is calling to increase diplomatic pressure on Iran. China vetoed the UN resolution on Syria. So why is Harper not increasing pressure on China by cancelling his junket?


Paul
said

A much better investment is to build more refineries in Canada. This would atleast shelter us from Opec and gas companies who are taking advantage of us. Who cares if it takes 5 years to build a refinery. Just do it.


Len
said

How much of the energy is the Harper Government going to sell (give away) to China. We have already given up much of our manufacturing to China and interests there; we export raw materials but they gain the jobs and wealth from selling us the finished goods (no wonder Ontario, B.C. and other provinces that don't supply energy are not as well off now as before); our balance of trade with China is way out of wack; among many other things. I'm afraid that this Prime Minister is selling Canada out and we'll be too indebted to China, just as the U.S.A. is already.


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