Chairman Harper, Weak Leader

Recklessly blind to ruthless aims of China's state-owned firms, PM treats them as any free market investors.

http://thetyee.ca/Opinion/2012/11/13/Chairman-Harper/

By Andrew Nikiforuk

The Conservative Party (CP) of Canada will likely ratify a promotion and investment treaty (FIPPA) with the Communist Party (CP) of China any day now. It will do so largely to accelerate the production of bitumen. 

Yet China Inc has outplayed and outgunned the Canadian government and its political class. Harper’s Conservatives have not only failed to do their due diligence but betrayed their own basic principles (most claim to support free markets and democracy). They've also sold out ordinary Canadians for the dubious prospects of bitumen expansion.

Prime Minister Stephen Harper says it's just another trade deal with an emerging economy, and that prosperity hides behind the great dragon's capital investments. But as every Beijing propagandist knows, the best lies are always the biggest ones.

For starters China is not an emerging economy. Nor is it a trading partner like the United States. It is a global economic warrior ruled by one party for 60 years and that totalitarian party is now on an aggressive shopping spree. This is a warrior that avoids the strong and strikes at the weak. And Canada, a nation without firm investment policy or strategy, makes a convenient target.

China's true economic warriors are largely 100 State-Owned Enterprises (SOEs) that practice "authoritarian capitalism." These complex organizations perform for China Inc and dutifully obey the dictates of the Party. They don't care about human rights and aren't shy about dealing with unethical rulers or failing states either. They offer little if any transparency. They don't like unions. They control half of China's GDP and grow in strength everyday. Period.

According to Canada's Department of Foreign Affairs this ugly global dragon has increased investment in Canada by 177 per cent between 2007 and 2010. If this expansion continues, (and FIPPA just opens wide the doors) then Chinese capital controlled by the Communist Party could surpass U.S. investment in Canada by as early as 2017.

 Chinese capital doesn't play by ordinary markets and certainly won't behave like U.S. dollars. Wherever the Chinese SOEs invest, they largely employ Chinese workers. These companies don't tolerate dissent. They say one thing to the public and do another behind closed doors. Nor do they invest in the local community. They work first and foremost for China Inc.

Submitting to the dragon

Now such a dramatic change in capital investment would obviously deliver some dragon-size economic, cultural, political and environmental impacts for Canada. But not according to Harper's gang. Its willingness to ratify such a significant agreement without provincial, aboriginal or parliamentary consultation makes Harper's government look a lot like the Communist Party. China's politburo doesn't allow public debate on their trade agreements.

So let's be clear about the potential scale of Harper's economic treason (and that's what it is) as well as his government's profligate stupidity.

The FIPPA treaty abets and supports investments from a one party state that actively manipulates its currency to provide unfair advantages for its exports. In fact most economists argue that the Chinese yuan (pegged to the U.S. dollar) is undervalued by as much as 20 per cent. Yet Harper approves.
The FIPPA treaty abets and supports a regime that does not entertain democratic rights or the rule of law. In China the state relentlessly silences dissent, picks economic winners and enriches the compliant status quo. And it has operated this way for centuries.

In a blunt 2010 essay the U.S. academic Francis Fukuyama noted that the lawless Chinese state largely directs most of its illegal activities against ordinary people. "Most of the unjust and illegal 'takings' that the Chinese government engages in are against relatively powerless peasants and non-elites, and are done in the name of rapid economic development." But that's the dirty regime Harper's government supports with sticky bitumen handshakes.

Fukuyama also recognized that dealing with an authoritarian dragon comes with uncertain perils. (Note: Why don't we hear University of Alberta's China Institute raising any such alarm bells? Given the institute's pro-trade mantra with SOEs, you'd think they were working for Beijing.)
Fukuyama, a conservative, makes a good point: "We should admit to ourselves that we have very little historical experience with how a rule of law might evolve in a country like China that has not experienced institutional constraints on executive power," he wrote. "And we also do not know how sustainable such an unbalanced, unchecked system will be under the external conditions it will face in the future."

Bizarrely, the FIPPA treaty embraces these perils. China's SOEs include its three large national oil companies: Sinopec, CNOOC and Petro China. Sinopec is larger than ExxonMobil. All three firms have been involved in human rights scandals and environmental abuses abroad as well as deep corruption at home. Yet Harper's ethical oil office can't wait to do business with them.

Complying without a strategy

The Economist, widely considered the world's most credible business magazine, clearly identifies China's SOEs as the greatest obstacles to the rule of law and democratic reform in China. In 2011 the U.S. China Economy and Security Review Commission also concluded that "there is no indication that the CCP was or is aiming to turn China into a bastion of free market capitalism dominated by privately owned entrepreneurial firms, responding to market incentives."

But the imminent ratification of FIPPA without public debate or significant reviews signals that Harper is too eager to pause for strategic reflection.

The Chinese, of course, don't work that way. Unlike Harper they have an energy strategy and its national oil companies spearhead that party-directed strategy. And unlike Canada’s witless Tories they also think 50 to 100 years down the road. As disciples of Sun Tzu, they typically prefer doing business with short-term fools.

Four critical questions Canadians need answered 

Last but not least the Harper government has put the proverbial cart before the horse with FIPPA. Given that China's SOEs behave ruthlessly and have deep ties to the Communist Party, the Canadian government and the Canadian media should be debating four essential public policy questions:

1. Is Canada's antitrust regime equipped to accurately assess the competitive effects of SOE behavior in Canadian markets? 

2. Do existing Canadian laws regulating market activity adequately contemplate an economy in which state-owned or controlled enterprises are major players?

3. Does Canada securities law disclosure regime provide investors with a complete and accurate picture of the ownership and governance of Chinese SOEs?

4. Last but not least, where an investment is made by a state-owned or controlled enterprise, should that entity be characterized as an "investor" for purposes of a FIPPA treaty? (The treaty Harper proposes to ratify wasn’t designed for state-state arbitration but for investor-state arbitration!)
Unlike the Canadian parliament, the U.S. Congress has asked these vital questions. So, too, has U.S. corporate law expert Curtis J. Milhaup.

High fives in Beijing

With the exception of Elizabeth May and one or two New Democrats, Canada's politicians have avoided the salient facts. The silence of Canada's provincial premiers raises even more concerns. In contrast poll after poll shows that the Canadian people, a well of common sense, have raised profound concerns about SOEs investing in Canada.

No FIPPA critic has asked Canada not to trade to China. But they (and everyone from Diane Francis to Gus Van Harten) and the Canadian public have asked for democratic representation instead of total capitulation and strategic policy instead of a dumb economic sell-out.

A government that approves a treaty with the world's second most powerful economic warrior without understanding the enemy's full intent is, and I will say it again, engaging in economic treason.

In Beijing party cadres no doubt are now gloating. They have found a weak leader in Canada who sells without negotiating, governs without consulting and rules without thinking.
Given FIPPA's imminent approval, China's State-Owned Enterprises appear to have won a victory without even fighting a battle in Canada.  And all thanks to Chairman Harper.

FIPA puts Canadian Parliament, Courts under Chinese Influence

NAFTA lawsuit should be an eye-opener for Harper

By Elizabeth May

On November 15th, 2012, US-incorporated firm Lone Pine Resources announced its intentions of suing the Government of Canada under the North American Free-Trade Agreement’s infamous Chapter 11.  Over what? Quebec’s decision to impose a moratorium on all oil and gas exploration activities in the Gulf of Saint Lawrence.

By announcing the moratorium, Quebec not only made the right decision (the GPC is the only federal party calling for a moratorium on any oil and gas exploration and/or development in the Gulf of St. Lawrence), but it set the standard for every other province. The decision was made by elected officials and with overwhelming support in the population. Every Quebecer still had the Deepwater Horizon drilling rig explosion in mind. Lone Pine argues the decision was “arbitrary”. I say it was not.

This case should be an eye-opener for Harper’s Conservatives in their zealous promotion of the Canada-China Investment Treaty.Thanks to citizens like you, the Treaty has not yet been ratified. If it were, it would allow Chinese companies (including state-owned enterprises) to sue Canada over decisions that can limit or reduce their expectation of profits. China could claim damages against Canada for decisions at the municipal, provincial, territorial or federal level.  Even decisions of our courts can give rise to damages. 

This is not theoretical. This is happening now with private US corporations. We don’t want to know what would happen if Harper allowed Chinese Communist Party-controlled enterprises this kind of power over our democracy.

I know you already took part in our campaign against the Canada-China Investment Treaty. I invite you to maintain the pressure on Stephen Harper. You can do so by using our new Email Your Friend button on our Action page.

The Net Benefit of Liberty

The economics of foreign policy is the ultimate example of the conflict between static and dynamic efficiency. The choice between maximizing short term gain or creating a world where everyone is better off in the long term.

           Foreign Policy is the engagement of the state with the world beyond it's boarders. It's objective is to maximize public good through the cultivation of a habitable international environment. Security is the basis of a habitable environment.

       There is a net benefit resulting from international security. A peace that is based on the principles of human rights and democracy. Political repression is a cost on human society. It deprives us of innovative and capable people. It creates a climate of fear and a culture of apathy. We as a species must end political violence. Intellectuals must be free to devote their energies, time and talents to solving the problems our species faces. The elimination of repression increases public wealth.

       Our democracy, our rights and freedoms must be preserved. They are the foundation of our security. Without these things, our lives can be taken from us at any time for any reason. Our individual security depends on our collective security. Our collective security depends on our collective liberty. Therefore, the strength of democracy is the foundation of our security. Public welfare is maximized in the long term through the reduction of repression and violence, by means of the guarantees to liberty, provided by democratic values.                

J

Red Dawn - Now Playing Censored Version

The movie that was delayed for two years is finally out, a relief for many even though the version released has been edited to remove all references to china.
Apparently your not allowed to portray china in a negative light anymore in Hollywood.

In a disturbing revelation it has been made public that the much anticipated film Red Dawn is being re-edited to remove all references to China and replace them with North Korea. The censorship is being imposed upon the makers of the film in order to satisfy business interests. The regime in China is bringing Western media further under its control.
This is a blow to all those who believe in personal freedom and human rights.

How an invading army changes from Chinese to North Korean.

Chinese Ambasador goes on CBC tells Canadians to "shut up"

"We're not here to grab your resources. We're here to participate."

The most arrogant and insulting ambassador I have ever heard has just told CBC's Even Solomon that Canadians concerned about China's activities in Canada should "shut up".

The standard communist party line told to those deemed enemies of the party. As china becomes more powerful it becomes more aggressive, it no longer has to hide it's intentions of world domination.

They once said "bide your time hide your capabilities" now they simply say "shut up".
We are dealing with the polar opposite of the Dalai Lama, the opposite of Christ.
The party only wants control, and they will unleash violence on Canada if we don't keep on our guard. It's only a matter of time. Vote out any politician who supports them. Vote out Harper.   

It's actually kind of funny, the ambassador does not realize how ridiculous he sounds to us.

In this country trying to push people around makes you look like a fool.
Bullies are not respected, they are reviled.

This is Canada, we don't have to shut up.  We don't care how many guns you have.

Some commenters have said Evan Soloman should have slapped him in the face.
I think the ambassador has just slapped his own face more than anyone else ever could.
  
Some excerpts from the interview:

"we have achieved a great deal in our political reform, people enjoy total freedom"

"it's a standard agreement, that means that the two countries are mature."

"all this talk about so called security concerns"

"they have to... I think.... shut up"

"It's a cold war mentality"

"thank you by by"

CSIS: China controls Canadian Politicians

CSIS warns of threat of foreign takovers

“When foreign companies with ties to foreign intelligence agencies or hostile governments seek to acquire control over strategic sectors of the Canadian economy it can represent a threat to Canadian security interests.”

 Premier Clark Supports Canada-China Trade Deal, Abandons BC's Constitutional Rights

Rafe Mair

"I don’t suppose that many of you have not by now heard of FIPA (Foreign Investment Promotion and Protection Agreement), the trade deal between Canada and China Stephen Harper is pushing forward - and I don't suppose that many of you, including me, have a full comprehension of what this will mean to trade, not to mention our economy, resources and environment."

1. It applies to trade agreements between Canada and China and, thanks to the premier, BC as well.
2. It is, like NAFTA, a treaty that for practical reasons, is all but unbreakable for 31 years.
3. It gives China the ability to obtain huge damages if we don’t perform our side of any deal and to sue for them in her own courts
4. This agreement has not been debated in Parliament nor in the Legislature of BC
5. It won’t be debated in Parliament or the BC Legislature because both the Prime Minister and Premier Clark don’t think they need the agreement of our legislative bodies
6. Without any question, this treaty will impact upon the Province of British Columbia and could cost us hundreds of millions of dollars
7. It seriously compromises the constitutional rights BC has under Section 92 of the Constitution Act (1982)

Stories within stories: Harper,why we must stop the Canada-China FIPA and the deal you still don’t really know about.

“On September 26, 2012 (the day after my Island Tides deadline), with no press release or briefing, the Parliamentary Secretary to the Minister of Foreign Affairs, rose in the House to table a few documents.  It was during a part of every day called “Routine Proceedings.”  The media had sped off for scrums after Question Period.  I was waiting my turn to table petitions.  Maybe another twenty MPs were in the Chamber when Deepak Obhrai tabled a deal with Norway and two with China – the agreement for peaceful use of nuclear energy and the “Agreement between the Government of Canada and the Government of the People’s Republic of China for the Promotion and Reciprocal Protection of Investments” (the Canada-China Investment Treaty). “

Vancouver Sun
 Vancouver City staff consulted with Chinese Government over protest ban bylaw
"Why would we consult with them about our bylaw"

Vancouver city staff consulted with the Chinese government over a proposed bylaw that would prevent Falun Gong protesters from erecting billboards and huts in front of its Granville Street consulate, council was told Thursday.

“Playing with the Dragon II – The architects behind Canada’s China Policy.”

 "At this juncture in Canadian history, as our federal government signs what was passed off as a run of the mill trade deal with China that is cloaked in so much secrecy, it brings to mind questions as to the motivation for such a move."

http://lailayuile.com

Brought to you in part by the impatient foreign investors at CNOOC Energy Economics Institute

" “It’s the same situation as the leftover single women. … It will be the same for the oil sands, they will be outdated just like unmarried single women,”

~ Chen Weidong, Chief Energy Researcher, speaking at the Canada China Forum for energy and the environment in Beijing, in reference to China’s growing frustration over Canada’s delays in approving takeovers and pipeline infrastructure which would allow China to get at our oil sands crude. "

Chinese Regime’s Tactics to Influence Canadian Officials, Corroborating Fadden’s comments  
"He stated that one of the most effective methods used to develop influence over political leaders is to provide them with all-expenses-paid travel to China and lavish entertainment while they are there."

  "In May this year, media reported [1] [2] that the Mayor of Ottawa, Mr. Larry O’Brien, upon return from a business trip to China, refused to proclaim Falun Dafa Day as he had done in previous years because he said he “made a commitment.” It was construed that he made a commitment to Chinese officials during his trip to China."

"A clear example of the mobilization of students by the Chinese embassy occurred right on Parliament Hill on June 24 during Hu Jintao’s visit to Canada. Students, paid and bussed from different cities, appeared to be holding a welcome activity for the Chinese leader, but actually they were there to target other Canadians."

"  First secretary Liu Shaohua from the education department at the Chinese embassy was caught on tape telling Chinese students that they were going into battle against Canadians who sought to bring awareness to the horrific human rights environment in China during Hu’s visit. Yuan Pinghua, another organizer, continued: “Now in a word this is like waging war, so today we are mobilizing for war, having all of you raise your guard.”
" Tape Reveals Embassy Footing Bill for Hu Jintao’s Welcome Rally "  
“You do not talk about it outside, do not talk about it to anyone, except to people in this circle.” - Liu Shaohua, Chinese Embassy Ottawa."

" “Originally, we did not expect the situation to be so complex,” Liu said. “Falun Gong, Tibetan separatists, Uyghur separatists, democracy people have already moved onto Parliament Hill [...] This is a battle that relates to defending the reputation of our motherland. The embassy and authorities inside China have a very high requirement.” "

“For our country this is such little money. In my view this is a struggle, a political struggle.”

" Liu says when Hu visited in 2005 and was met with protesters, officials in China were furious. He complained that during that visit, Canadian authorities did not co-operate with Chinese demands regarding the protesters, but this time he says there were some limited guarantees. “Some parts cannot be guaranteed because this country is particular about so-called freedom. It does not care. It says, ‘we are a free country.’ So we are still negotiating. Falun Gong has already occupied three locations.” "

 The Photo Harper doesn’t want you to see “At last night’s dinner in Ottawa in honour of President Hu, from left to right, Andre Desmarais, president and co-Chair of the Power Corporation Board of Directors…who has contributed greatly to the strengthening of China-Canada relations, Hu Jintao and the Prime Minister of Canada, Stephen Harper.”

"In spite of Globe and Mail hide-the-picture hype, the real story here is how the Canadian government allows the censorship of the out-of-line Chinese Embassy who, at the end of the day, successfully banned the Epoch Times and New Tang Dynasty from the coverage of last night’s press conference."

RMR: Rick's Rant - China Trade Agreement