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China’s Global Financial Forum Conference begins


China’s Global Financial Forum Conference begins

Photo: TMX Group Limited

Today marks the start of the virtual 2021 Global China Financial Forum, an annual event that links Chinese investors to North American mining and energy companies.

Chinese state-owned companies have spent billions of dollars establishing ownership interests with mining and energy companies throughout North America, South America and Africa over the past two decades. As Chinese reserves of strategic resources like zinc, cobalt and rare earth metals have faced major domestic production shortages, Beijing has authorised a strategy known as “two markets, two resources” using state-sponsored investment to secure Chinese influence over global metal supply chains. In 2019, China invested $59 billion in US firms.

As China emerges from the COVID-19 pandemic with a modest 2.3% GDP growth in 2020, Beijing is looking to stimulate growth and increase influence on foreign markets. A 2020 Chinese Export Control Law limited the ability of Chinese firms to export technology and rare earth metals, giving Chinese investments tremendous leverage to disrupt global high-tech manufacturing supply chains while championing domestic industry. As Chinese investment into North America continues to increase, expect continued trade tensions as Beijing uses overseas Chinese businesses to promote domestic companies.

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