China Minmetals Corporation and Noranda Inc.
(10 pages of text)
The proposed takeover of Noranda Inc. (one of the biggest mineral players in the world) by the Chinese state owned enterprise, China Minmetals Corporation, was cause for Canadian government concern as it required some understanding about the workings and objectives of state owned enterprises. There was particular concern around the labour issues and human rights violations in China, and the possible impact of these on the proposed takeover. Equally important, Canada ran the substantial risk of sending the wrong message to the People's Republic of China if it was to block such a takeover, and in some respects, to be seen as shutting its doors to one of the world's largest and most powerful emerging economies.
This case is intended to be used in an international business course. This case is also suitable for use in business-government relations, public administration and international affairs courses. This case should enable students to 1) become acquainted with key economic, political and social differences between an industrialized market economy such as Canada and one of the most powerful emerging economies in the world, the People's Republic of China, ruled by a communist party, where SOEs play a major role in a government-directed economy; 2) understand the potential trade-offs a market economy such as Canada might make between its social values and the drive to exploit potential economic opportunities in China, a country whose human rights performance is wanting; 3) introduce students to the role played by government investment screening agencies and that, in the case of Canada, human rights is not a screening "factor of interest," while national security may become a "factor of interest" as a result of a 2005 government-proposed amendment to the Investment Canada Act.
Mining, Quarrying, and Oil and Gas Extraction
Canada/China, Large, 2004
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