This terrific article by the Financial Post echoes the warning signs of an earlier Post piece by Probe International’s Patricia Adams on trade with China and, in particular, China’s state-owned enterprises.
(March 19, 2014) A corruption scandal in China involving the country’s largest, state-backed oil companies has some analysts talking about a “buying opportunity”, but investors would be right to proceed with caution.
(November 23, 2012) The proposed takeover of Calgary-based oil and gas producer Nexen by China’s state-owned oil giant CNOOC should be nixed by the Canadian government, says Probe International’s Patricia Adams. As instruments of the Communist Party, China’s state-owned enterprises (SOEs) are undisciplined by markets or the rule of law. Without subsidies, their rate of return on equity is negative. It would be impossible to stop them from distorting the Canadian economy, so Canada should just say no to CNOOC.