Chinese in Vancouver: Thank you, China's interest in Canadian resources is gone, finally

CIV - Although the Conservatives have successfully painted a picture that the Chinese are scooping up Canadian resources fast (and not the Americans), the fact is: the hype has already gone. The Harperites who are standing guard for our resources AGAINST CHINA's buying spree could be worry free now.

According to a report by Sing Tao, Michael McPhie, president and CEO of the Mining Association of British Columbia said although they have been receiving receive 3-5 Chinese inquires a month since last November, he can't see the Chinese investors are turning inquiry into solid investments.

McPhie couldn't come up with a solid explanation. But he said the short history of Chinese investment in the mining business might be a factor. Otherwise, the Chinese are looking for investment opportunities worldwide and aren't fixated at Canada.

Allen Wright, executive director & CEO of the Coal Association of Canada said he did receive 4-5 inquiries from China after BC energy minister Bill Bennett led a business tour to China last year. At that November trip, Bennett was very excited when he announced to the Chinese media that the Chinese will be making at least one major investment in BC's mining industry within the next year.

Wright believes Chinese corporate investors are getting more interested in BC.

Unfortunately, the ministry of energy and mines said there is no data on Chinese investment in BC's mining industry.

However, Cassandra Hall of the Association for Mineral Exploration BC said, to her best knowledge, no BC mines are under the holding of any Chinese investors at this point.

She said the association got about 5 inquiries from Chinese companies last year. Ten BC mining companies went to China with Bill Bennett. Two are believed to be in negotiations with Chinese investors.

In Alberta, where the Tories fear most the Chinese would buy out their base, there is no obvious hype to buy Albertan resources from China, according to Greg Stringham, VP of the Canadian Association of Petroleum Producers representing 140 Canadian oil and gas companies.

Stringham said Alberta sent a delegation to participate in the 1st World Petroleum Conference held in Beijing last November. However, the Chinese interest in Albertan oil sands has not increased after the conference. In the last 6 months, the CAPP has received no inquiry from China at all.

In fact, Stringham said, the Chinese interest in Canadian oil sands has peaked a few years ago. There were numerous negotiations and they covered a broad spectrum, from looking at company take-over to buying oil directly from Alberta.

From a Industry Canada tabulation report for domestic exports of coal, gas and petroleum from BC and Alberta to China shows that BC has not been doing well in 2006. While Alberta's exports of these products to China in 2006 has surged 25 times.

On the other hand, the table shows that BC is diversifying its export markets and is getting less reliant on the US market. Alberta's energy production remains mainly for the US.

EXPORTS OF COAL, GAS, PETROLEUM AND THE LIKE BY BC, ALBERTA

AB TO CHINA
	2004	2005	2006
China	133	148	3,733
ALL COUNTRIES	46,160,361	57,941,346	58,182,494
% CHINA/ALL	0.0003	0.0003	0.0064


BC TO CHINA
	2004	2005	2006
China	116,180	74,986	27,231
ALL COUNTRIES	4,222,902	7,054,301	6,067,296
% CHINA/ALL	2.75	1.06	0.45



AB TO US
	2004	2005	2006
U.S.	46,061,419	57,711,396	57,891,555
ALL COUNTRIES	46,160,361	57,941,346	58,182,494
% US/ALL	99.79	99.60	99.50


BC TO US
	2004	2005	2006
U.S.	27,690,000	42,200,000	32,860,000
ALL COUNTRIES	42,230,000	70,540,000	60,670,000
% US/ALL	65.57	59.82	54.16