No need for national security review of Aecon takeover, China's ambassador says

China's ambassador to Canada says there is no need for a national security review of a Chinese firm's $1.5-billionbid to take over Canadian construction giantAecon.

"The technology from the Chinese side is much higher than the Canadian side... it is not necessary for them [the Chinese government] to steal the technologies from Canadian companies," Ambassador Lu Shayetoldreporters in Halifax through an interpreter today.

Lu described the proposed deal as a "very normal business transaction," saying it does not involve "military technologies," and therefore Canada does not need to conduct an additional review.

• Chinese construction firm CCCI to buy Aeconfor $1.5B

"In my point of view, it is not necessary to have the scan in the prospective of national security reasons," Lu said.

"We will respect any decision made by the Canadian government in this regard," he added, suggesting a review will not sour potential free trade talks between Canada and China.

Last month, CCCCInternational Holding Ltd., a state-owned company, made a $1.5-billion bid to purchase Aecon Group Inc., a Canadian construction firm that has created landmarks like the CN Tower.

Case-by-case reviews

Canada has yet to sayif it plans toconduct a separate national security review in addition tothe standard review required through the Investment Canada Actbefore approving the deal.

"Each proposed investment is examined on a case-by-case basis and on its own facts and merits," said a statement from Innovation Minister Navdeep Bains' office.

National security is a consideration in all Investment Canada Act reviews, but the government can also conduct an additional investigation if it deems one necessary.

Before a decision can officially be made, the minister must be formally notified about the impending transaction. That has still not happened yet, in this case.

As has been previously reported, CCCCInternational has been banned from bidding on World Bank construction projects, for its role in a bid-rigging scheme in the Philippines.

The Conservatives are echoing calls for the Liberals to move slowlyand carefully.

"Canada's Conservatives believe that foreign transactions involving Canadian companies should only be approved if the transaction is in the best interest of Canadians," said innovation, science and economic development criticMaxime Bernier in a statement to CBC News.

He accusedthe Liberals of not takingthese "sensitive transactions seriously."

NAFTA insights

Lu confirmed that China is following the NAFTA renegotiation process closelyand that it hopes an agreement can be reached.

The ambassador says China is looking to support multilateralism, and that it has much in common with Canada on that front.

The comments come ahead of the fifth round of trade talks between Canada, the United States, and Mexico, which begin next week.

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