Canada to Huawei: do an IPO with us
- Handing Canada what may be the world’s biggest IPO would be a gesture of goodwill that would satisfy full disclosure on finances, governance and ownership structure and help clear the way for Ottawa’s approval of the 5G pioneer
There is finally a voice of reason in the furore over Huawei. Unsurprisingly, it comes from a Canadian, a former ambassador to China no less.
Testifying before a special committee in the Canadian parliament, Guy Saint-Jacques proposed a way forward. The idea is to get the Chinese 5G pioneer to list on the Toronto Stock Exchange with an initial public offering, along with all the full disclosure on finances, governance and ownership structure that a full IPO would entail. “We should tell Huawei we welcome all public companies,” he said.
Huawei has become a nightmare for the government of Justin Trudeau, who came to power determined to improve relations with China and promote bilateral trade.
Instead, the arrest of Huawei’s No 2, Meng Wanzhou, in Vancouver at the request of US prosecutors pending extradition has plunged the country into its worst crisis with Beijing.
In addition to all the diplomatic and economic conundrums, Canada has to decide whether to follow the United States, Australia, Japan and Taiwan in banning Huawei’s 5G infrastructure gear; or to allow restricted use, as with Britain and possibly Germany, which has yet to decide.