TORONTO, Sept 22 (Reuters) - China's ambassador to Canada
warned in remarks published on Saturday against allowing
domestic politics to drive the Canadian government's decision on
whether to approve Chinese state-owned oil company CNOOC Ltd's
proposed $15.1 billion takeover of Canadian oil
producer Nexen Inc.
"Business is business. It should not be politicized,"
Ambassador Zhang Junsai said in an interview with Canada's Globe
and Mail newspaper. "If we politicize all this, then we can't do
business."
The CNOOC deal, if completed, would mark the first outright
takeover of a large Canadian energy producer by a Chinese
state-owned enterprise.
The ambassador also said negotiating a full free-trade
agreement within a decade would be the best way of assuring
fair, two-way trade and investment between China and Canada.
"It's time to open up each other's markets," Zhang said.
"It's high time to do the exploratory work on the possibility of
a free-trade agreement."
The newspaper said it was the first time that a senior
Chinese representative called for early, accelerated talks on a
free-trade deal.
Concern that China has unfairly limited Canadian companies
from investing there is one of the issues affecting the debate
on approving CNOOC's bid for the energy producer.
Industry ministry officials are looking closely at the bid
to determine whether it is of net benefit to Canada.
Canadian Trade Minister Ed Fast could not be reached
immediately for reaction to Zhang's comments, which coincide
with Chinese Commerce Minister Chen Deming's visit to Canada
next week.
CNOOC, whose offer was endorsed by Nexen shareholders last
week, said it did not expect Chen to raise its sensitive
takeover bid during talks with the Canadian government.
In the Globe interview, Zhang said a free-trade treaty would
go a long way toward expanding trade and investment between the
two countries, something that Canadian Prime Minister Stephen
Harper sees as a top priority.
Harper wants to ease the dependence of Canada's
export-oriented economy on the United States, its main trade
partner.
Although Canada is seeking substantial foreign investment in
its oil and gas industry, the CNOOC move is raising concern
inside the cabinet, where some members are wary of letting a
Chinese state-owned enterprise buy up domestic assets.
Zhang said Canadian fears over China's intentions are
unfounded. "We are not coming to control your resources," he
said.