Feng Leng
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Canadian businesses in China punished over Huawei arrest
Canadian companies in China have lost major contracts, been tied up in more red tape and are complaining about late payments from Chinese clients since the arrest of a senior Huawei executive in Vancouver, as fears grow about a backlash against foreign businesses from Beijing.
Canadian aerospace and transport giant Bombardier is believed to have lost a number of contracts in China since a diplomatic row broke out between the two countries in December. Some Canadian multinationals are also banning senior executives from travelling to China because they fear for their safety.
Sources in the Canadian business community told The Australian Financial Review there was growing evidence that China was seeking to punish the corporate sector to put pressure on Ottawa over the pending extradition of Huawei finance chief Meng Wanzhou to the United States. Many see the Canadian situation as a blueprint for what could happen to Australian companies if Canberra was in a similar situation.
"The really worrying thing is the uncertainty; we don't know how long this will play out and it's really damaging for SMEs," the person said.
In many cases, Canadian companies are advising staff who usually travel to China regularly for business to stay at home. Beijing's recent detention of Canadian citizens Michael Kovrig and Michael Spavor has raised concerns that other prominent Canadians could become targets although there is no sign so far that business executives have been detained or not allowed to leave the country.
It is also believed some Canadian universities are advising students due to visit China on exchange programs not to go. Some smaller companies have reported delays in visa approvals for staff due to visit China for training.
Other major Canadian companies with a big presence in China include financial services group Manulife, Restaurant Brands International and Canada Goose Holdings. Canada Goose, a high-end down jacket maker delayed opening a store in Beijing and its shares fell sharply after Ms Meng's arrest.
Other signs of a backlash against Canadian companies were entertainment group Cirque de Soleil's failure last month to secure a deal to appear on one of China's most prominent television shows, the CCTV Spring Festival Gala. The entertainment company denied it was linked to the political situation.
An Alberta-led trade delegation due to visit China has reportedly been postponed.
Risk consultants and Australian business executives in China told the AFR they were watching the challenges facing Canadian companies closely as it was litmus test for what could happen to other foreign companies. Executives who think they are skirting Chinese law in any way are being advised to leave the country.
Canadian companies in China have lost major contracts, been tied up in more red tape and are complaining about late payments from Chinese clients since the arrest of a senior Huawei executive in Vancouver, as fears grow about a backlash against foreign businesses from Beijing.
Canadian aerospace and transport giant Bombardier is believed to have lost a number of contracts in China since a diplomatic row broke out between the two countries in December. Some Canadian multinationals are also banning senior executives from travelling to China because they fear for their safety.
Sources in the Canadian business community told The Australian Financial Review there was growing evidence that China was seeking to punish the corporate sector to put pressure on Ottawa over the pending extradition of Huawei finance chief Meng Wanzhou to the United States. Many see the Canadian situation as a blueprint for what could happen to Australian companies if Canberra was in a similar situation.
"The really worrying thing is the uncertainty; we don't know how long this will play out and it's really damaging for SMEs," the person said.
In many cases, Canadian companies are advising staff who usually travel to China regularly for business to stay at home. Beijing's recent detention of Canadian citizens Michael Kovrig and Michael Spavor has raised concerns that other prominent Canadians could become targets although there is no sign so far that business executives have been detained or not allowed to leave the country.
It is also believed some Canadian universities are advising students due to visit China on exchange programs not to go. Some smaller companies have reported delays in visa approvals for staff due to visit China for training.
Other major Canadian companies with a big presence in China include financial services group Manulife, Restaurant Brands International and Canada Goose Holdings. Canada Goose, a high-end down jacket maker delayed opening a store in Beijing and its shares fell sharply after Ms Meng's arrest.
Other signs of a backlash against Canadian companies were entertainment group Cirque de Soleil's failure last month to secure a deal to appear on one of China's most prominent television shows, the CCTV Spring Festival Gala. The entertainment company denied it was linked to the political situation.
An Alberta-led trade delegation due to visit China has reportedly been postponed.
Risk consultants and Australian business executives in China told the AFR they were watching the challenges facing Canadian companies closely as it was litmus test for what could happen to other foreign companies. Executives who think they are skirting Chinese law in any way are being advised to leave the country.
