Monday, January 28, 2019


  Chinese investment in Canada nearly halved in 2018, as Beijing’s restrictions on capital outflows combined with rising Western scrutiny of its state-owned firms and heightened diplomatic tensions to put a damper on its global dealmaking ambitions.
 At 47 per cent, the drop in investment in Canadian firms was slightly deeper than the global decline, which came in at 40 per cent. Total investment fell to $4.43 billion from $8.45 billion in 2017.
The slump — evident in nearly all the sectors that traditionally attract interest from Chinese firms — is partially the result of capital controls imposed by Beijing in 2016 and 2017. China is attempting to stabilize its currency — down 10 per cent at its weakest point last year — by preventing money from fleeing the country via overseas investments.
  But a host of other factors are also likely at play, Houlden said, including Chinese investor caution due to poorly performing Canadian energy investments and an overall chill cast by a year of fraught relations between Ottawa and Beijing.

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