BC’s First Nations are keen to tap into Chinese investment, creating a new level of competition for Vancouver’s resource companies.
Last week, the BC First Nations Leadership Council announced a China strategy aimed at generating stronger ties between the province’s indigenous peoples and China’s business community.
The strategy was announced following a trade mission to China, which came in response to a “growing commercial interest” in British Columbia’s natural resources sector.
“First Nations in British Columbia are experiencing unprecedented inquiries from Chinese companies to develop projects on their territories,” said Union of BC Indian Chiefs Grand Chief Stewart Phillip.
The strategy means First Nations would take a more proactive approach to business dealings with Chinese investors. In the past, Asian investors have formed partnerships with Vancouver resource firms that then establish relationships with First Nations communities near their projects.
That method has resulted in conflict between the business community and aboriginals, often resulting in failed agreements and soured relations.
The new strategy calls for annual business missions between First Nations communities and China, and the establishment of a “China desk” to help aboriginals develop business opportunities.
When asked if First Nations believe they can get a better deal working directly with Chinese investors than local resource companies, Grand Chief Edward John said, if nothing else, the strategy ensures aboriginals are included in the conversation.
“In the past we’ve either been sidelined or ignored, and in this case we’re saying we need to have jobs, we need to have an economy, we need to ensure we benefit from the resources that are extracted in our territory,” said John, political executive of the First Nations Summit. “We shouldn’t be sitting on the sidelines and our people lining up in the welfare lines … anything that gets beyond that is better than what we have now.”
Dave Porter, CEO of the First Nations Energy and Mining Council, said working directly with Chinese investors in the past has turned negative business relationships positive.
“We’re on the verge now of signing a deal as a result of the Chinese investors’ influence on their Canadian partners,” said Porter.
The strategy was announced at a press conference hosted by the Asia Pacific Foundation of Canada.
“The strategy represents a significant step forward in developing a broader appreciation for the rise of Asia and its impact on Canada and First Nations communities,” commented Yuen Pau Woo, president and CEO of the foundation.
Still, the strategy has a long way to go before it could be considered a success.
For example, Phillip said First Nations need to build more capacity in their communities so they can properly assess potential business deals with Asian investors.
Stockwell Day, former federal minister of international trade and the Asia-Pacific Gateway, wouldn’t comment on whether First Nations have been left out of previous conversations between the government, industry and Asian investors.
But he did say the strategy is a positive step forward for B.C.’s aboriginal community.