DHARAMSALA, May 25: Canada has blocked a Chinese takeover of a Canadian construction company over national security concerns.
“Our government is open to international investment that creates jobs and increases prosperity, but not at the expense of national security,” Navdeep Bains, the Canadian innovation minister has said in a statement released on Wednesday.
CCCI was to takeover Aecon earlier in February but a national security review by the Canadian government delayed it before it was blocked by Prime Minister Justin Trudeau led administration.
The Canadian Prime Minister has said that his cabinet vetoed the Chinese takeover of one of Canada’s largest construction company over concerns it could control critical infrastructure projects and threaten Canadian sovereignty.
Aecon, one of Canada’s largest construction company has helped to build Canadian landmarks including the CN Tower and the Saint Lawrence Seaway.
According to a report on The Guardian, the move by Trudeau Government has angered China and China’s foreign ministry has demanded Canada to ‘abandon its prejudices’ and provide a level playing field for Chinese enterprises.
The snub by Canada to the Chinese takeover of the Aecon is the fifth foreign takeover or investment it blocked on security grounds in the past 10 years.
The decision has been hailed as a significant change in the Trudeau led Liberal government’s approach to China.
The decision to block the Aecon sale amounts to a significant change in the Liberal government’s approach to China. The Trudeau government came into office with a strategy of embracing China and pursuing free trade with the world’s second-largest economy, reports The Globe and Mail, a leading Canadian newspaper.