Hostname: page-component-7479d7b7d-q6k6v Total loading time: 0 Render date: 2024-07-08T19:40:30.608Z Has data issue: false hasContentIssue false
  • English
  • Français

CNOOC-Nexen, State-Controlled Enterprises and Canadian Foreign Investment Policies: Adapting to Divergent Modernization

Published online by Cambridge University Press:  20 June 2014

Geoffrey Hale
Geoffrey Hale*
Affiliation:
University of Lethbridge
*
Department of Political Science, University of Lethbridge, Lethbridge AB Canada T1K 3M4, Email: geoffrey.hale@uleth.ca
Get access Rights & Permissions [Opens in a new window]

Abstract

This article examines the evolving debate over takeover bids by foreign state-owned and influenced enterprises (SOEs) in the context of CNOOC's successful 2012 acquisition of Nexen Inc., historical debates over foreign investment in Canada and the ongoing adaptation of Canadian trade and investment policies to global shifts in economic activity and power. It views SOE-related policy changes as responses to four broad factors: Canada's adaptation to changing global investment patterns as a small, open economy, efforts to diversify Canada's trade and investment relations while balancing domestic regional and sectoral interests, the extension of trade-related principles of reciprocity to investment policies and competition among governmental and economic interests in the allocation of discretion in corporate governance and related regulatory policies.

Résumé

Cet article examine l'évolution du débat sur les offres de reprise d'entreprises par des sociétés appartenante aux or influencées par des états etrangers dans le contexte de l'acquisition de Nexen Inc. en 2012. Il envisage aussi les implications des débats historiques des investissements étrangers au Canada et de l'adaptation des politiques canadiens du commerce et d'investissement à l’étranger aux changements mondiaux de l'activité économique et de la puissance. Il discute des modifications apportées à la politique en tant que réponses à quatre grands facteurs: l'adaptation du Canada à l'évolution des investissements mondiaux en tant que petite économie ouverte; les efforts visant à diversifier les échanges commerciaux et d'investissement du Canada tout en équilibrant les intérêts régionaux et sectoriels nationaux; l'extension des principes de réciprocité du commerce pour les politiques d'investissement; et les concurrences entre les intérêts gouvernementaux et économiques dans la repartition du pouvoir discrétionnaire en matière de gouvernance d'entreprise et les politiques réglementaires connexes.

Type
Research Article
Information
Canadian Journal of Political Science/Revue canadienne de science politique , Volume 47 , Issue 2 , June 2014 , pp. 349 - 373
Copyright
Copyright © Canadian Political Science Association (l'Association canadienne de science politique) and/et la Société québécoise de science politique 2014 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Aitken, H.G.J. 1959. “Defensive Expansion: The State and Economic Growth in Canada.” In Approaches to Canadian Economic History, ed., Easterbrook, W.T. and Watkins, M.H.. Ottawa: Carleton University Press, 1986.Google Scholar
Beatty, Perrin. 2012. “Time to prove Canada open for business.” Financial Post (Toronto), September 29, FP17.Google Scholar
Baldwin, John R. and Gu, Wulong. 2005. Multinationals, Foreign Ownership and Productivity Growth in Canada. Cat. #11-622: #9. Ottawa: Statistics Canada.Google Scholar
Beckstead, Desmond and Brown, W. Mark. 2006. Head Office Employment in Canada: 1999–2005. Cat. #11-624-MIE #014. Ottawa: Statistics Canada.Google Scholar
Berkow, Jameson. 2012a. “If CNOOC gets green light, blue skies ahead for energy investors.” Financial Post (Toronto), July 25, FP1.Google Scholar
Berkow, Jameson. 2012b. “Staking Nexen ground.” Financial Post (Toronto), October 5, FP1.Google Scholar
Bhattachargee, Subrata. 2009. “National Security with a Canadian Twist: The Investment Canada Act and the New National Security Review Test.” Columbia FDI Perspectives #10 . New York: Vale Columbia Center on Sustainable International Investment, July 30, October 3.Google Scholar
Bloom, Michael and Hodgson, Glen. 2012. “Chinese wall needed.” Financial Post (Toronto), October 5, FP9.Google Scholar
Bradford, Neil. 1998. Commissioning Ideas. Toronto: Oxford University Press.Google Scholar
Bremmer, Ian. 2009. “State Capitalism Comes of Age.” Foreign Affairs 88 (3): 40–55.Google Scholar
Brodie, Ian. 2013. “Remarks to Pacific North-West Economic Summit.” Banff, AB, November 23.Google Scholar
Büthe, Tim. 2010. “Private Regulation in the Global Economy: A (P)Review.” Business and Politics 12:3.Google Scholar
Canada. 1972. “Gray Report.” Foreign Direct Investment in Canada. Ottawa: Information Canada.Google Scholar
Canada. 1985. “Macdonald Commission.” Report of the Royal Commission on the Economic Union and Development Prospects for Canada. 3 vols. Ottawa: Supply and Services Canada.Google Scholar
Canada. 1994. Agenda: jobs and growth—a new economic strategy for Canada. Ottawa: Department of Finance (October).Google Scholar
Canada. 2013. “Trade Investment and Economic Statistics.” Ottawa: Office of the Chief Economist, Foreign Affairs, Trade and Development Canada, October.Google Scholar
Canada. Competition Policy Review Panel. 2008. Compete to Win: Final Report. Ottawa: Industry Canada, June.Google Scholar
Canada. Economic Council of Canada. 1981. Reforming regulation. Ottawa: Supply and Services Canada.Google Scholar
Canada. Justice Canada. 2012. Petro-Canada-Public Participation Act. S.C. 1991.Google Scholar
Card, Andrew and Daschle, Thomas. 2011. “US Trade and Investment Policy.” Independent Task Force Report # 67. New York: Council on Foreign Relations, September.Google Scholar
Cattaneo, Claudia. 2012a. “Playing between the superpowers: Canada's China Bet.” Financial Post (Toronto), July 28, FP1.Google Scholar
Cattaneo, Claudia. 2012b. “State owned oil cash welcomed by juniors.” Financial Post (Toronto), November 22, FP6.Google Scholar
Cattaneo, Claudia. 2012c. “Oil patch exhales.” Financial Post (Toronto), December 8, FP1.Google Scholar
Chan, Cathy. 2010. “Sinochem bid lacks backing, sources say.” Financial Post (Toronto), October 8, A5.Google Scholar
Chase, Steven. 2013. “Ottawa blocked Lenovo overture.” The Globe and Mail (Toronto), November 5, B1.Google Scholar
Chase, Steven and McCarthy, Shawn. 2012. “New test for foreign takeovers.” The Globe and Mail (Toronto), October 24, A1.Google Scholar
Chase, Steven, McCarthy, Shawn, and Bouw, Brenda. 2010. “Potash takeover failure blamed on $12-billion pledge.” The Globe and Mail (Toronto), November 16, A6.Google Scholar
Clarkson, Stephen. 1967. “The Choice to be Made.” In Readings in Canadian Foreign Policy: Classic Debates and New Ideas, ed. Bratt, Duane and Kukucha, Christopher. Toronto: Oxford University Press, 2006.Google Scholar
Clarkson, Stephen. 2002. Uncle Sam and Us: Globalization, Neo-Conservatism, and the Canadian State. Toronto: University of Toronto Press.Google Scholar
Clarkson, Stephen. 2004. “Global governance and the semi-peripheral state: the WTO and NAFTA as Canada's external constitution.” In Governing under Stress: Middle Powers and the Challenge of Globalization, ed. Cohen, Marjorie Griffin and Clarkson, Stephen, 153–74. Halifax: Fernwood.Google Scholar
Coyne, Andrew. 2012. “Takeover process entirely arbitrary.” The Ottawa Citizen, October 2, A10.Google Scholar
Crane, David. 2007. “Foreign takeovers must be in our interest.” The Toronto Star, April 30.Google Scholar
DenTandt, Michael. 2012. “Hasty Nexen deal bad for Canada.” The Calgary Herald, October 22, A3.Google Scholar
Dobby, Christine. 2013. “Ottawa rejects Allstream deal.” Financial Post (Toronto), October 8, FP1.Google Scholar
Doern, G. Bruce and Brian Tomlin. 1991. Faith and Fear: The Free Trade Story. Toronto: Stoddart.Google Scholar
Doern, G. Bruce and Glen Toner. 1985. The Politics of Energy: The development and implementation of the National Energy Program. Toronto: Methuen.Google Scholar
Fekete, Jason. 2012. “CSIS warns of security risks in foreign takeover bids.” The Calgary Herald, September 21, A3.Google Scholar
Fekete, Jason. 2013. “Takeover rules hurt economy: officials.” The Calgary Herald, December 7, A13.Google Scholar
Financial Post/Crosbie. 2003–2013. M&A Quarterly Reports. Toronto. http://www.crosbieco.com/ma/index.html (May 6, 2013).Google Scholar
Foster, Peter. 2012. “CNOOC: not much to fear.” Financial Post (Toronto), August 8, FP13.Google Scholar
Georgiev, George Stephanov. 2008. “The Reformed CFIUS Regulatory Framework: Mediating between continued openness to foreign investment and national security.” Yale Journal on Regulation 25.Google Scholar
Gotlieb, Allan. 1991. “The United States in Canadian Foreign Policy.” O.D. Skelton Lecture. Ottawa: Foreign Affairs and International Trade Canada, December 10.Google Scholar
Gotlieb, Allan. 2004. “Romanticism and Realism in Canada's Foreign Policy.” Benefactors Lecture. Toronto: C.D. Howe Institute, November 3.Google Scholar
Gourevitch, Peter. 2003. “Corporate Governance: Global Markets, National Politics.” In Governance in a Global Economy, ed. Kahler, Miles and Lake, David A.. Princeton: Princeton University Press.Google Scholar
Greenspon, Edward and Wilson-Smith, Anthony. 1996. Double Vision: The inside story of the Liberals in power. Toronto: Doubleday.Google Scholar
Guillemette, Yvan and Mintz, Jack M.. 2004. “A Capital Story: Exploding the Myths around Foreign Investment in Canada.” Commentary # 201. Toronto: C.D. Howe Institute.Google Scholar
Gurzu, Anca. 2010. “Struggling with sovereign wealth funds.” Embassy (Ottawa), March 17, 1.Google Scholar
Hale, Geoffrey. 2008. “The Dog That Hasn't Barked: The Political Economy of Contemporary Debates on Canada's Foreign Investment Policies.” Canadian Journal of Political Science 41 (3): 719–47.Google Scholar
Hale, Geoffrey. 2011. “‘In the Pipeline’ or ‘Over a Barrel’? Assessing Canadian efforts to manage US–Canadian energy interdependence. Canadian-American Public Policy 76, May.Google Scholar
Hale, Geoffrey. 2012. “In Pursuit of Leverage: The Evolution of Canadian Trade and Investment Policies in an Increasingly Multipolar World.” Canadian Foreign Policy Journal 18:1 (March): 106–19.CrossRefGoogle Scholar
Hall, Peter A. and Soskice, David. 2011. “Introduction.” In Varieties of Capitalism: The Institutional Foundations of Comparative Advantage, ed. Hall, Peter A. and Soskice, David. New York: Oxford University Press.Google Scholar
Hampson, Fen Osler. 2009. “The threat to Canada.” Financial Post (Toronto), September 15, FP13.Google Scholar
Harper, Rt. Hon. Stephen. 2012. “Statement by the Prime Minister of Canada on Foreign Investment.” Ottawa: Prime Minister's Office, December 7.Google Scholar
Helman, Christopher. 2012. “The World's Biggest Oil Companies.” Forbes, July 16.Google Scholar
Hoekman, Bernard M. and Kostecki, Michel M.. 2009. The Political Economy of the World Trading System. 3nd ed. Toronto: Oxford University Press.Google Scholar
Hunter, Lawson. 2013. Remarks to conference, “Proceed with Caution? State owned Enterprises and the Need for a New Approach to Investment Policy.” School of Public Policy, University of Calgary, December 11.Google Scholar
Hussain, Yadullah. 2014. “Petronas’ LNG plans gain momentum,” Financial Post (Toronto), April 30, FP4.Google Scholar
Industry Canada. 2000–2013. Investment Canada Act: Statistics. Ottawa. www.ic.gc.ca/eic/site/ica-lic.nsf/eng/h_lk00015.html (May 10, 2013).Google Scholar
Industry Canada. 2009. “Regulations amending the Investment Canada Regulations and National Security Review of Investments Regulations.” Ottawa: July.Google Scholar
Industry Canada. 2012. “State owned Enterprises.” Backgrounder. Ottawa: December 7.Google Scholar
Innis, H.A. 1956. “The importance of staple products.” In Approaches to Canadian Economic History, ed. Easterbrook, W.T. and Watkins, M.H.. Ottawa: Carleton University Press, 1986.Google Scholar
Jones, Jeffrey. 2005. “EnCana sells Ecuador oil assets to Chinese group.” The Globe and Mail (Toronto), September 14.Google Scholar
Jones, Jeffrey. 2014. “Energy rebound sets the stage for deal makers. The Globe and Mail (Toronto), April 10, B2.Google Scholar
Laghi, Brian and Clark, Campbell. 2008. “Ottawa rejects space firm's sale to US” The Globe and Mail (Toronto), April 10, A1.Google Scholar
Lake, David A. 2009. “Open economy politics: A critical review.” Review of International Organizations 4 (3): 219–44.CrossRefGoogle Scholar
Lang, Eugene and Morse, Eric. 2012. “Nexen debate should be all about security.” The Ottawa Citizen, September 25, A12.Google Scholar
Leis, Jorge, McCreery, John, and Gay, Juan Carlos. 2012. “National oil companies reshape the playing field.” Boston: Bain and Co., October 10.Google Scholar
Lewis, Jeff and Cattaneo, Claudia. 2013. “Culture shock.” Financial Post (Toronto), December 7, FP1.Google Scholar
Macklem, Tiff. 2013. “Global Growth and the Prospects for Canada's Exports.” Speech to Economic Club of Canada. Ottawa: Bank of Canada, October 1.Google Scholar
Mandel-Campbell, Andrea. 2008. Foreign Investment Review Regimes: How Canada Stacks Up. Ottawa: Conference Board of Canada, April.Google Scholar
Marchick, David M. and Slaughter, Matthew J.. 2008. Global FDI Policy: Correcting a Protectionist Drift, CSR #34. New York: Council on Foreign Relations, June.Google Scholar
Marotte, Bertrand. 2007. “Beaudoin joins call for takeover protection.” The Globe and Mail (Toronto), May 30, B1.Google Scholar
Martin, Roger. 2012. “Should Nexen go to China? Two views.” The Globe and Mail (Toronto), July 26, A15.Google Scholar
Martin, Roger and Nixon, Gordon. 2007. “Whoa Canada.” The Globe and Mail (Toronto), July 2, B1.Google Scholar
McCallum, John. 2007. “Level field for takeovers.” Financial Post (Toronto), June 5, FP15.Google Scholar
McCarthy, Shawn. 2012. “Public attitudes a big hurdle to foreign takeovers.” The Globe and Mail (Toronto), November 21, B5.Google Scholar
McCarthy, Shawn and McNish, Jacquie. 2012. “Oil patch seeks foreign takeover rules.” The Globe and Mail (Toronto), September 26, A1.Google Scholar
Mintz, Jack M. 2012a. “Limit state takeovers.” Financial Post (Toronto), July 25, FP15.Google Scholar
Mintz, Jack M. 2012b. “Mixed blessings.” Financial Post (Toronto), November 20, FP11.Google Scholar
Morgan, Gwyn. 2007. “Head offices can locate anywhere, so make Canada competitive.” The Globe and Mail (Toronto), May 14, B2Google Scholar
Prentice, Jim. 2012a. “Should Nexen go to China? Two views.” The Globe and Mail (Toronto), 26 July, A15.Google Scholar
Prentice, Jim. 2012b. “Dealing with state owned enterprises.” National Post (Toronto), November 20, A16.Google Scholar
Robinson, Roger W. 2013. “SOE investments and security.” Remarks to conference, “Proceed with Caution? State owned Enterprises and the Need for a New Approach to Investment Policy,” School of Public Policy, University of Calgary, December 11.Google Scholar
Schwartz, Gerald. 2007. “Ottawa should step up for the home team.” The Globe and Mail (Toronto), May 14, B2.Google Scholar
Shufelt, Tim. 2010. “Disaster Warning.” Financial Post (Toronto), October 5, FP1Google Scholar
Simpson, Jeffrey. 2012. “What if Nexen coveted CNOOC?” The Globe and Mail (Toronto), September 29, F9.Google Scholar
Statistics Canada. 1999–2013. Canada's International Investment Position, Cat. #67-202. Ottawa.Google Scholar
Statistics Canada. 2011. Canadian Economic Observer: Historical Statistical Supplement, Cat. #11-210-X.Google Scholar
Tang, Jianmin and Rao, Someshwar. 2001. R&D Propensity and R&D Performance of Foreign Controlled Firms in Canada. Ottawa: Industry Canada.Google Scholar
Trudeau, Justin. 2012. “The next big thing.” National Post (Toronto), 20 November, A16.Google Scholar
Van Assche, Ari. 2012. “Global Value Chains and Canada's Trade Policy: Business as usual or Paradigm Shift?” IRPP Study #32. Montreal: Institute for Research on Public Policy, June 3–26.Google Scholar
Veniez, Daniel. 2012. “Don't fret about a takeover of resources.” The Globe and Mail (Toronto), October 25, B2.Google Scholar
Watkins, M.H. 1963. “A staple theory of economic growth.” In Approaches to Canadian Economic History, ed. Easterbrook, W.T. and Watkins, M.H.. Ottawa: Carleton University Press, 1986.Google Scholar
Wong, Edy. 2012. “SOEs: a struggle over values.” Financial Post (Toronto), October 27, FP19.Google Scholar
Wood, James. 2012. “China's bid for Nexen far from a done deal, PM says.” The Calgary Herald, July 25, A4.Google Scholar