Proponents of B.C.’s resource sector say China could be an economic game changer, but at least one analyst believes the good times may not last for long.
“Ultimately, the Chinese company would look for investment return, the real business motivation,” said Kenny Zhang, a research analyst with the Asia Pacific Foundation of Canada. “Once they figure out it’s more expensive to do business overseas they’ll come back to their home countries … it’s a cycle.”
For several years the province’s resource industries have been awash with news of Asian investment that could create a greater demand for B.C. products. Although it may not last forever Zhang believes there is more news to come.
“It’s a new phenomenon, but it’s going to be a trend for Chinese companies to invest in Canada. Although we are still at the beginning of the whole process, we see more stories, more deals coming in the near future.”
In addition to China’s unprecedented growth, Zhang said the Asian behemoth wants to expand its market worldwide. In North America, China has its eyes set on Canada’s abundant natural resources. Many Chinese companies see that sector as a good way to boost their profile.
Zhang told BIV: “Chinese companies are looking to establish their international brand.”
See this week’s print edition for tips on how Canadian companies are attracting Chinese investors.