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Canada Orders Chinese Firms To Divest Interest From Mineral Investments

 |  November 7, 2022

Canada ordered three Chinese companies on Wednesday to divest their investments in Canadian critical minerals, citing national security.

China in response accused Ottawa of using national security as a pretext and said the divestment order broke international commerce and market rules.

As countries compete to shore up reserves of materials needed for a transition to a cleaner economy, the news pushed down the Chinese companies’ shares on Thursday, although they said in stock exchange filings they did not expect a major impact on their performance.

Read more: Canada’s Expanding Approach to National Security in Foreign Investment Reviews

The three ordered to divest their investments are Sinomine (Hong Kong) Rare Metals Resources Co Ltd, Chengze Lithium International Ltd, also based in Hong Kong, and Zangge Mining Investment (Chengdu).

The Canadian government ordered the divestiture after “rigorous scrutiny” of foreign firms by Canada’s national security and intelligence community, Industry Minister Francois-Philippe Champagne said in a statement.