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China looks north

February 11, 2013

The latest chart from the Wall Street Journal shows China’s investment in Canada more than doubling that of the US. The US economy is 10 times larger than the Canadian one so the data are rather startling. Undoubtedly the $18 B takeover of Nexen by CNOOC is embedded in the figures.



Canada’s liberal immigration policies have attracted upper class Chinese immigrants to Vancouver, and to a lesser extent, Toronto, one reason behind the high property values in Vancouver.

China is the biggest nation of savers. The savings are needed by the populace to fund their retirement and provide a social safety net. China is now the largest creditor nation in the world. It’s savings get recycled back as loans to western governments and into capitalistic enterprises, some of which invest in the north.

China is investing in production for a generation now. As a result it’s GDP is slated to surpass that of the United States in about a decade from now.

China has invested in the oil sands and in base metal mining projects in northern Canada. China has not invested in Alaska or in precious metals-gold or silver.



Source: Dealogic Wall Street Journal