In June, the Alberta government launched a website publicly outing employers who haven’t paid their workers—an online hall of shame. Among these “deadbeat bosses,” as the media quickly dubbed them, the worst offender was a subsidiary of China Petrochemical Corp. (Sinopec), a Chinese state-owned oil giant. That same subsidiary, along with others, is facing charges after the deaths of two Chinese workers flown in to work on a site near Fort McMurray, Alta., in 2007. After much delay, the trial begins this fall.
It’s the kind of bad press Chinese firms can’t afford as they seek to buy up swaths of Alberta’s oil patch and attempt to win over Canadian regulators and a wary populace. Last week, Chinese state interests went after two Calgary-based companies. China National Offshore Oil Corporation (CNOOC) Ltd.’s $15.1-billion bid for Nexen Inc. got the most attention by far: it’s the biggest-ever takeover of a Canadian company by a state-owned entity. On the same day, Talisman Energy Inc. said it would sell a 49 per cent stake in its U.K. North Sea outfit to Sinopec for $1.5 billion. “Virtually overnight, Chinese investment in the energy sector has doubled to over $30 billion,” says Wenran Jiang, director of the Canada-China Energy & Environment Forum. Although the deals have yet to be approved, it’s a sign of things to come.
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