China-Canada tensions having a short term effect on inbound investment

Toronto-based partner Mike Amm has spoken with the Globe and Mail regarding the current tensions between China and Canada, saying the issues “are going to have a short-term dampening effect” on inbound investment.

The article discusses how dealmaking between China and Canada is being affected by the rising tensions, which continues to gather momentum after Canadian citizens were detained in China in what the article describes as a reaction to Canada’s arrest of Huawei Technologies Co’s CFO.

The actions taken by both nations has had ripple effects through the business community, creating uncertainty and leading to various deals being kept under wraps, Mike said.

“People aren’t going to be keen to announce deals right now,” he said.

“They’re not going to want to announce in this maelstrom.”

But despite the tensions, Mike also told the Globe and Mail that “China can’t afford to cut itself off from the Western world.”

“They really do need to invest abroad," he said.

Mike, and his colleague Omar Wakil and Scott Cochlan, penned a piece in the Q1 2019 edition of the Torys Quarterly titled "Chinese investment into Canada: balancing openness and security" that discuss the future of Chinese investment into Canada.