Canadian released from Chinese jail and deported to Canada

Kevin Garratt, a Canadian held in jail in China on allegations that he was a spy was deported to Canada on Thursday after being convicted on Tuesday of spying and stealing state secrets. Kevin was reunited with his wife Julia at Vancouver airport.

Justin Trudeau, Canadian PM said that there was "tremendous potential" for stronger and more stable ties with China. The deportation of Garratt was no doubt a diplomatic coup for Trudeau. Trudeau had visited China earlier this month and Chinese Premier Li Kegiang is to arrive in Canada next week. According to the Globe and Mail a government source claimed that Trudeau had made it clear in several meetings with top Chinese officials that a better relationship with Canada would be difficult to reach unless Garratt were released. The source said that when Trudeau's first official visit to China was over the release of Garratt was virtually assured.

In an unusual step, Trudeau had Michel Columbo, director of the Canadian Security Intelligence Service (CSIS) sent to China four months ago to meet with his Chinese counterpart in order to attest that Garratt was not a spy for Canada. Foreign Minister Stephane Dion, and ambassador Guy Saint-Jacques made concerted attempts to obtain the release of Garratt. Former PM Stephen Harper also worked on behalf of Garratt in 2014.

Trudeau was asked if Canada was open to more investment from China, which is seeking a free trade deal with Canada. China is not part of the large Trans-Pacific Partnership (TPP) deal whereas Canada is. Trudeau said that there was scope for closer ties.

Foreign Affairs minister Stephan Dion said on Friday that Canada made no concessions to obtain Garratt's release.

Mr. Garratt is a Pentecostal pastor who came to China in 1984. After his conviction, Garratt was deported almost immediately rather than sent to jail. He flew from Shenyang China, to Tokyo and then on to Vancouver. His wife Julia had also been arrested but was released on bail in February and allowed to return to Canada. James Zimmerman Garratt's lawyer and a Canadian embassy official escorted Garratt back to Vancouver.

Roland Paris a former top foreign-policy adviser for Trudeau before stepping-down and taking a job as a professor of international affairs at the University of Paris claimed that Justin was much like his father in that he was tough and persistent. Paris said: “Not just in respect to dealing with China, but I have found him in meetings with foreign leaders to be extremely effective. Because he was able to communicate, to be clear in his own mind what he wanted to accomplish.” Paris said that Trudeau's trip to China had been “an important and successful first step in establishing a more consistent and constructive and sustained relationship with China.”

Critics points out, however, that there are still many activists, lawyers, and writers behind bars in China. This includes Canadian Huseyin Celil and Wang Bingzhang whose children live in Canada. John Higginbotham, a former Canadian Commissioner to Hong Kong from 1989 to 1995 called the situation a "Chinese Opera" whereby Canada can claim successes that don't amount to much but which strengthens the hand of China. Higginbotham said: “It’s obviously a very political gesture by the Chinese to give face to Mr. Trudeau, and hope that that will generate further benefits to China.”

China and Canada sign trade deal on last day of APEC meeting

At the last day of the APEC meeting in Vladivostok Russia China and Canada have signed a new trade deal that will give protection to Canadian investments in China

After spending time lecturing Putin on Syria and breaking off relations with Iran, Prime Minister Stephen Harper met with Chinese President Hu Jintao on the last day of the APEC meeting and officials signed a broad investment pact. Harper beamed:

"Our government is committed to creating the right conditions for Canadian businesses to compete globally...This agreement with China — the world's second largest economy — will provide stronger protection for Canadians investing in China, and create jobs and economic growth in Canada."

Harper has been anxious to expand trade with Asia and especially China and to diversity capital sources to develop Canadian resources. Much of our trade now goes south to the United States. The Chinese premier said:

"Mr. prime minister, we attach great importance to the China-Canada relationship."

The meeting comes just as Canada is reviewing CNOOC's $15.1 billion deal for Nexen Inc. based in Calgary. Some worry that the state-owned company will not play by the rules as would private companies. Other countries also have state-owned oil companies including the Saudis and even Norway.

China made an offer that was far above the market price of shares. North American headquarters will be kept in Calgary and staff retained. Even the Alberta government supports the deal and so it will be difficult for Harper to claim that it is not a net benefit to Canada.

Some Americans have expressed reservations about the deal. Canada is regarded as a reliable source of raw materials by the U.S. Under NAFTA the U.S. has favorable terms to purchase of our resources. They may not appreciate China having more access and more control over our oil resources. Nexen is a global company and also has leases in the Gulf off the U.S. coast. There could be some pressure from the U.S. to reject the deal. However with so many Canadian players on side with the Chinese Harper may ignore any U.S. pressure.

Canada signs multiple trade deals with China

  Given the large number of high profile business representatives who accompanied Stephen Harper on his visit to China the results are not surprising. This was meant to be a business trip. China needs our resources and Canadian companies are eager to expand markets especially into the rapidly growing Asian economies such as China.
      A CBC article here list ten of what it calls a blizzard of deals. However a main framework agreement is the FIPA (Foreign investment production and protection agreement). The agreement is simply a statement of intent and would need to be ratified by both governments. The agreement when completed will protect Canadian investments in China and Chinese investments in Canada. The agreement will give investors in either country confidence that their investments will be safe in the other country. Such agreements are common. Canada has such agreements with 24 other countries already.
    As well as this overarching agreement there were many agreements in specific areas. I will just mention a few. In agriculture there are agreements to restore Canada as an exporter of beef to China. Also, industrial beef tallow (fat) will now be allowed in. Until now Canada was excluded. China imports about 400 million in tallow each year. China has agreed to purchase more Canadian canola.
    There is agreement as well for collaboration between the two countries on sustainable research. Another welcome move is to collaborate on research to develop and protect National Parks with China's state forestry administration. For much more detail see the entire article. Of course China is very much interested in investing in Canadian resource industries such as the oil sector.
   

Harper in China for Big Business

   Canadian Prime Minister Stephen Harper is visiting China. He is not alone. Natural Resources Minister Joe Oliver is with him and also the Foreign Affairs Minister and Agriculture Minister Gerry Ritz. The delegation will be in China from Feb. 8 to 11.
   Politicians are not the only members of the delegation. Big Business is well represented especially in the oil and gas area where there representatives from eight different companies. But other sectors are also represented with Air Canada, Bombardier, Manulife, and Scotiabank representatives in the group as well.
    Not long ago Chinese investment in Canada could be measured in the millions. Now it is about 20 billion. Harper is wisely enough trying to diversity his market for Canadian oil and gas. Now most exports are to the U.S. The Chinese for their part are eager to find sources of energy supplies for their fast growing economy.
     The NDP, the official opposition party, is not opposed to trade but thinks that Harper should  bring up the human rights situation in China. No doubt Harper will do so and he is expected to bring up Syria as an issue as well. Harper is staunchly anti-communist. His big business supporters are interested in profits not ideology or even human rights except in terms of public relations for the most part. The reality will be not only business as usual but a growing trade between China and Canada. For more see this article. China may loan us a couple of Panda bears.



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