China envoy in Canada warns against politicising CNOOC-Nexen deal

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If completed, a deal between Calgary-based Nexen and CNOON would mark the first outright takeover of a large Canadian energy producer by a Chinese state-owned enterprise. Photo: EPA

Published: 2:25pm, 23 Sep 2012Updated: 4:13am, 29 Aug 2013

China’s ambassador to Canada warned in remarks published on Saturday against letting domestic politics drive the Canadian government’s decision on whether to approve a Chinese state-owned oil company’s proposed US$15.1 billion takeover of Calgary-based Nexen.

“Business is business. It should not be politicised,” Ambassador Zhang Junsai said in an interview with Canada’s Globe and Mail newspaper.

“If we politicise all this, then we can’t do business,” he added, referring to the Canadian Industry Ministry’s review of CNOOC’s proposal to buy the Canadian oil and gas producer.

The deal, if completed, would mark the first outright takeover of a large Canadian energy producer by a Chinese state-owned enterprise.

The ambassador also said negotiating a full free-trade agreement within a decade would be the best way of assuring fair, two-way trade and investment between China and Canada.

“It’s time to open up each other’s markets,” Zhang said in remarks that coincide with Chinese Commerce Minister Chen Deming’s visit to Canada. “It’s high time to do the exploratory work on the possibility of a free-trade agreement.”

The newspaper said it was the first time that a senior Chinese representative called for early, accelerated talks on a free-trade deal.