【By Xiangguan Zhe (Xiangguan Zhe)】According to the Canadian Broadcasting Corporation (CBC), on July 7 local time, the House of Commons Committee on Transportation decided to investigate the $1 billion loan that British Columbia Ferries (BC Ferries), a ferry operator in Canada, obtained from the Canadian Infrastructure Bank, which was used to purchase four new hybrid oil-electric ships from a Chinese shipbuilding company.

The report said that the committee will summon the Canadian Minister of Transport, Freeland (Chrystia Freeland), the Minister of Infrastructure, Robertson (Gregor Robertson), and the CEOs of BC Ferries and the Canadian Infrastructure Bank to testify. The hearing will take place within the next 30 days.

Canadian Conservative Party MP and co-chair of the House of Commons Committee on Transportation, Dan Albas, requested the meeting to be held on July 7 local time. He claimed that during the ongoing Canada-US trade war and when China imposed tariffs on certain Canadian agricultural products, the Canadian government's decision to use $1 billion in public funds to fund overseas shipbuilding projects needs an explanation — whether the government is outsourcing domestic jobs using public funds.

Will Greaves, a Canadian Liberal Party MP, also supported the investigation but encouraged the committee members not to rush to conclusions but to wait for the testimony. He added that ferry services are crucial for coastal communities in British Columbia.

BC Ferries passenger ferry, Canadian media

According to the report, the House of Commons Committee on Transportation will discuss subsequent investigative steps after the hearing procedure. In a statement, Nicolas Jimenez, CEO of BC Ferries, said the company selected the most cost-effective bid and emphasized that the decision was made "without any Canadian bids." He added that the low-interest loan would save up to $650 million in expenses for ferry passengers and British Columbia taxpayers.

"Without it (the loan), we would still build these ferries, but we would need to cover the difference by increasing customer fares or increasing investment from upper levels of government," Jimenez said.

At the beginning of this month (June 10), BC Ferries disclosed on its website that it had selected CMI Weihai Shipbuilding Co., Ltd., part of China Merchants Industry Group, as the shipbuilder for its fleet to construct four large passenger ferries. The new ferries will replace four aging vessels that are due to be retired, and are expected to be put into service between 2029 and 2031.

On June 20 local time, Canadian Minister of Transport Freeland strongly criticized BC Ferries and the provincial government of British Columbia, adding new uncertainty to the cooperation.

Freeland claimed that, in the context of China imposing unfair tariffs on Canada and the Canadian government's efforts to promote the domestic shipbuilding industry, BC Ferries' choice of a Chinese shipyard to build four large passenger ferries left her "very shocked and disappointed."

Conceptual diagram of new ferries, BC Ferries official website

In a letter to Mike Farnworth, the Minister of Transportation of British Columbia, Freeland wrote: "I am disappointed that BC Ferries chose a Chinese shipyard to build new ferries under the current geopolitical circumstances. I request you to verify and confirm that no federal funds will be used to support the purchase of these new ferries."

She stated that the annual $37.8 million CAD subsidy, $308 million CAD post-pandemic funding, and the loan provided by the Canadian Infrastructure Bank must not be used for this Chinese collaboration.

Additionally, Freeland questioned the so-called "Chinese cybersecurity issues," asking whether BC Ferries and the British Columbia provincial government conducted a national security assessment before signing the contract with the Chinese shipyard this month.

In 2022, Canada banned Huawei and ZTE from participating in its 5G construction citing "national security" reasons. In response, a spokesperson for the Chinese Embassy in Canada pointed out that the Chinese government has always required Chinese enterprises to conduct foreign economic cooperation in accordance with international rules and local laws. Huawei and ZTE have maintained excellent records regarding network security. Without any solid evidence, Canada decided to exclude relevant Chinese companies from the Canadian market under the pretext of "national security," seriously expanding the concept of national security, violating principles of market economy and free trade, and harming the legitimate rights and interests of Chinese enterprises. Canada claimed that it consulted its allies about the decision, but essentially it aimed to cooperate with the United States to suppress Chinese enterprises. Canada's so-called "security" considerations are nothing more than a political maneuver.

Responding to Freeland's doubts, BC Ferries defended its decision, stating that Canadian companies have ordered 100 ships from Chinese shipyards over the past decade.

Despite some Canadian politicians promoting the clichés of "unfair trade" and "economic security," BC Ferries clearly stated in its statement that the decision went through a "strict and independent" global bidding process and was a "wise" choice.

Meanwhile, Canadian industry professionals also supported BC Ferries' decision. A business leader in Canada said that choosing a Chinese shipyard was a "very wise" decision that served the best interests of the company's customers.

This article is exclusive to Observer, and without permission, it cannot be reprinted.

Original: https://www.toutiao.com/article/7524506987888034331/

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