On November 3, Canada’s Industry minister, François-Philippe Champagne, said three state-owned Chinese companies would be required to divest from mining companies. He added, “While Canada continues to welcome foreign direct investment, we will act decisively when investments threaten our national security and critical minerals supply chains, both at home and abroad.”
The critical minerals include lithium, cadmium, nickel, and cobalt are used in turbines, electric cars, solar panels, and rechargeable batteries. Communist China has become the largest refiner and processor of these minerals and metals in the last few years and also built an extensive supply chain that relies on overseas mines for raw materials.
Knowing that Canada possesses extensive and unexplored nickel and cobalt deposits, Chinese companies have made a huge foreign investment in this industry. Notably, this year, the Chinese state-controlled firm Zijin Mining Group Co took over a Canadian mining company Neo Lithium Corp that, prompted parliamentary hearings into the possible national security threats posed by increased investment by Communist China.
Last week Canada tightened rules on foreign investments in the mineral sector and declared that state-owned firms will be approved for investments only on “an exceptional basis,” including small investments and takeovers.
Due to Communist China’s growing dominance and CCP-controlled company’s huge foreign investments, countries like the UK, Canada, the US, and Australia banded together and established a global partnership to secure access to critical minerals.