By All Means Necessary (37 page)

30
. Noronha et al., “Corporate Social Responsibility Reporting in China, ” 29–42.

31
. “China Petroleum & Chemical-A (600028: Shanghai): Fu Chengyu, ”
Bloomberg Businessweek
, accessed September 5, 2013,
http://investing.businessweek.com/research/stocks/people/person.asp?personId=83535916&ticker=600028:CH
.

32
. Rothlin, “Towards a Socially Responsible China, ” 7.

33
. “What Is the EITI?” accessed April 24, 2013,
http://eiti.org/eiti
.

34
. Ibid.

35
. After becoming a candidate, a country has two years to be validated by an independent auditor. Once they have been validated, it is designated a “compliant” country. In addition to resource-rich companies that volunteer to become candidates, resource-importing countries and resource companies can sign up to be supporters. For more information, see “What Is the EITI?”
http://eiti.org/eiti
.

36
. Francisco Paris, “China and the EITI, ” EITI Blog, February 19, 2010, accessed April 24, 2013,
http://eiti.org/blog/china-and-eiti
.

37
. “Stakeholders: Countries, ” EITI Website, accessed April 24, 2013,
http://eiti.org/supporters/countries
.

38
. Michelle Chan, “Crude Beginnings: The Environmental Footprint of China National Petroleum Corporation Around the World, ” Friends of the Earth, February 17, 2012,
http://www.foe.org/news/archives/2012-02-crude-beginnings-the-environmental-footprint-of-chin
.

39
. Author e-mail interview with Erica Downs.

40
. Guo et al., “Transparency Matters, ” 16.

41
. Christopher Burke, Johanna Jansson, and Wenran Jiang, “The Extractive Industries Transparency Initiative (EITI) and China's Energy Policy Formulation Process, ” Centre for Chinese Studies, August 2009, 21.

42
. “About RWI, ” Revenue Watch Institute,
http://www.revenuewatch.org/about
.

43
. Burke et al., “The Extractive Industries.”

44
. “Zambia Extractive Industries Transparencies Initiative: Independent Reconciliation for Year End December 2008, ” PricewaterhouseCoopers, February 2011, 30.

45
. Pegg, “Social Responsibility and Resource Extraction, ” 162.

46
. Author e-mail interview with Cynthia Sanborn, April 16, 2013.

47
. Caroline Stauffer, “Chinese Miner Builds High-altitude Experiment in Peru, ”
Reuters
, July 1, 2012.

48
. Ibid.

49
. Eric Ng, “Chinalco Mining Offers Investors Exposure to Peru, ”
South China Morning Post
, January 21, 2013.

50
. Amos Irwin and Kevin P. Gallagher, “Chinese Investment in Peru: A Comparative Analysis, ”
Working Group on Development and Environment in the Americas
, no. 34 (December 2012): 26.

51
. “Emerging Best Practices of Chinese Globalizers, ” 15.

52
. Kotschwar et al., “Do Chinese Mining Companies Exploit More?”

53
. “Second National Reconciliation Study of the Extractive Industries Transparency Initiative (EITI) in Peru (2008–2010), ” Ernst & Young, December 13, 2011.

54
. Dan Collyns, “Chinese Mining Firm to Raze Peruvian Peak for 35 Years of Mineral Wealth, ”
Guardian,
December 20, 2012.

55
. Guo et al., “Transparency Matters, ” 28–29.

56
. Zadek et al., “Corporate Responsibility and Sustainable Economic Development, ” 4.

57
. Sheng, “Chinese Firms.”

58
. Ibid.

59
. Ibid.

60
. Mi, “Challenges.”

61
. Xiaogang Yu, Chen Yu, and Yang Yong, “Chinese NGOs Travel to Myanmar, ”
China Development Brief
, no. 53 (June 2012).

62
. Andrew Higgins, “Abduction of Chinese Workers in Sudan Stirs Criticism in Beijing, ”
Washington Post
, February 1, 2012.

63
. “How to Maintain Safety for Chinese Companies After They ‘Go Out' [Zhongguo Qiye ‘Zou Chuqu' Hou De Anquan Celue], ”
Xinhua
, February 6, 2012,
http://ccnews.people.com.cn/GB/17032262.html
.

64
. Leslie Hook, “Chinese Investors Retreat from Politically Risky Markets, ” China Dialogue, April 17, 2013,
http://www.chinadialogue.net/article/show/single/en/5915-chinese-investors-retreat-from-politically-risky-markets
.

1
. Michael J. De La Merced and Ian Austen, “Chinese Oil Company Bids $15 Billion for Canadian Producer, ” Deal Book,
New York Times
, July 23, 2012,
http://dealbook.nytimes.com/2012/07/23/cnooc-to-buy-nexen-for-15-billion/
.

2
. De La Merced and Austen, “Chinese Oil Company Bids $15 Billion for Canadian Producer.”

3
. This refers to the sum of proved and probable reserves.

4
.
Nexen Annual Report: Our Plan for Delivering Value
(Calgary, Canada: Nexen, 2011),
http://www.nexeninc.com/en/investors/~/media/Files/AnnualReports/2011/Nexen_2011_AnnualReportFINAL.ashx
. About half of its natural gas production came from Canada too.

5
. “Opposition Motion: Proposed Takeover of Nexen by CNOOC (Part III), ”
House of Commons Debates
, 41st Parl., 1st Sess., No. 157 (October 2, 2012) at 10719, accessed July 2013,
http://envirohansard.ca/2012/10/opposition-motion-proposed-takeover-of-nexen-by-cnooc-part-iii/
.

6
. United Nations, UN Commodity Trade Statistics Database (UN Comtrade), 2009,
http://comtrade.un.org/db/
.

7
. Xueli Huang and Ian Austin,
Chinese Investment in Australia: Unique Insights from the Mining Industry
(New York: Palgrave Macmillan, 2011), 7.

8
. Ellis Connolly and David Orsmond,
The Mining Industry: From Bust to Boom
(Sydney: Economic Analysis Department, Reserve Bank of Australia 2011), 15.

9
. Michael Plumb, Christopher Kent, and James Bishop, “Implications for the Australian Economy of Strong Growth in Asia, ” Research Discussion Paper RDP2013-03, March 2013,
www.rba.gov.au/publications/rdp/2013/2013-03.html
.

10
. William Pesek, “Australians Should Be Careful of Dutch Disease, ”
Bloomberg
, May 10, 2012,
http://www.bloomberg.com/news/2012-05-10/australians-should-be-careful-of-dutch-disease.html
.

11
. This section draws from the Foreign Investment Review Board's annual reports from 2000 to 2012. They are accessible at
http://www.firb.gov.au/content/publications.asp
. Foreign Investment Review Board (FIRB),
Annual Report, 2008–09
(Canberra: Commonwealth of Australia, 2010); and Australian Bureau of Statistics, “5352.0—International Investment Position, Australia: Supplementary Statistics 2012, ” May 2, 2013,
http://www.abs.gov.au/AUSSTATS/[email protected]/DetailsPage/5352.02012?OpenDocument
.

12
. Huang and Austin,
Chinese Investment
.

13
. Ibid., 58.

14
. Foreign Investment Review Board (FIRB),
Annual Report, 2010–11
(Canberra: Commonwealth of Australia, 2012). The Shell bid was rejected on the grounds that Woodside held a dominant position in Australia's North West Shelf gas field and that it was “in the national interest that [the gas] be developed and marketed in preference to competing products from anywhere else in the world, ” something the Australian government was not confident Shell would do, even with conditions on the deal stipulating timelines and benchmarks for prompt development. Becky Gaylord, “Australia Rejects a Shell Takeover Bid, ”
New York Times
, April 24, 2001.

15
. Huang and Austin,
Chinese Investment
, 64.

16
. Ultimately, despite several years of attempts, Sinosteel was unable to buy anywhere close to half of the company at the price it was willing to pay. Jonathan Standing, “Australia to Allow Sinosteel to Buy into Murchison, ”
Reuters
, September 21, 2008.

17
. For more on the security risks associated with rare earths, see Levi,
The Power Surge
.

18
. Dexter Roberts and Chi-Chu Tschang, “Why Chinalco's Buying into Rio Tinto, ”
Bloomberg Businessweek
, February 5, 2008,
http://www.businessweek.com/stories/2008-02-05/why-chinalcos-buying-into-rio-tintobusinessweek-business-news-stock-market-and-financial-advice
.

19
. Jiangning Yan and Jianfei Zhao, “Waiting Game for Chinalco's Rio Tinto Deal, ”
Caijing
, February 27, 2009,
http://english.caijing.com.cn/2009-02-27/110074764.html
.

20
. Dana Cimilluca, Shai Oster, and Amy Or, “Rio Tinto Scuttles Its Deal with Chinalco, ”
Wall Street Journal
, June 5, 2009.

21
. Qiu Lin, “Closer Look: A Steel of a Deal, ”
Caixin Online
, August 5, 2011,
http://english.caixin.com/2011-08-05/100288091.html
.

22
. Peter Drysdale, “Australia Needs to Get Its Act Together on China, and Fast, ”
East Asia Forum
, June 7, 2009,
http://www.eastasiaforum.org/2009/06/07/australia-needs-to-get-its-act-together-on-china-and-fast/
.

23
. Huang and Austin,
Chinese Investment
.

24
. Malcolm Turnbull, “Transcript of the Hon. Malcolm Turnbull MP Address to the Lowy Institute, ” Lowy Institute, May 1, 2009.

25
. Garry White, “Rio Tinto Faces Political Headwinds in Australia, ”
The Telegraph
, March 18, 2009.

26
. Peter Costello, “The View from the East Has a Very Different Hue, ”
Sydney Morning Herald
, July 15, 2009.

27
. Linda Ensor, “SA-born Billiton Chief ‘Sank China Deal, '”
Business Day
, February 15, 2011,
http://www.bdlive.co.za/articles/2011/02/15/sa-born-billiton-chief-sank-china-deal;jsessionid=12C06EC1B9CFA9145E3D21A1B01CE6C8.present2.bdfm
.

28
. Graeme Wearden, “Rio Agrees Deal with Rival BHP and Tees up Rights Issue, ”
Guardian
, June 5, 2009,
http://www.guardian.co.uk/business/2009/jun/05/rio-tinto-bhp-billiton-iron-ore-deal
.

29
. Terry Macalister, “Rio's Deal with Chinalco Collapses, ”
Guardian
, June 4, 2009,
http://www.guardian.co.uk/business/2009/jun/04/rio-tinto-chinalco-investment
.

30
. Fergus Hanson,
The Lowy Institute Poll 2009: Australia and the World: Public Opinion and Foreign Policy
(Sydney, Australia: Lowy Institute for International Policy, 2009).

31
. Ibid.

32
. Ibid.

33
. Andrew Shearer,
Sweet and Sour: Australian Public Attitudes Towards China
(Sydney, Australia: Lowy Institute for International Policy, 2010).

34
. “China Global Investment Tracker Interactive Map, ” Heritage Foundation,
http://www.heritage.org/research/projects/china-global-investment-tracker-interactive-map
.

35
. “GDP by Sector of the Canadian Economy, ” Industry Canada, last modified June 27, 2013,
https://www.ic.gc.ca/app/scr/sbms/sbb/cis/gdp.html?code=11-91&lang=eng#fnb2
.

36
. “Trade Data Online, ” Industry Canada, accessed September 6, 2013,
https://www.ic.gc.ca/eic/site/tdo-dcd.nsf/eng/Home
.

37
. Ibid.

38
. Ibid.

39
. Bo Kong,
China's International Petroleum Policy
(Santa Barbara, CA: Praeger Security International, 2010), 81.

40
. Kong,
China's International Petroleum Policy,
81; Sizhi Guo,
The Business Development of China's National Oil Companies: The Government to Business Relationship in China
(Houston, TX: James A. Baker III Insitute for Public Policy at Rice University, 2007), 18; World Bank Social and Economic Development Group, “Chapter 4: MENA's Investment Links with China and India, ” in
Strengthening MENA's Trade and Investments Links with China and India
(Washington, DC: World Bank, 2008), 58; and Dan Child, “Opportunities for Alberta's Oil and Gas Industry in China's Emerging Economy, ” December 15, 2004, 5,
http://www.business.ualberta.ca/Centres/CABREE/Energy/~/media/business/Centres/CABREE/Documents/Energy/Oil/DanChild.ashx
.

41
. Sizhi Guo,
The Recent Financial and Operational Situation Conditions of the Chinese Oil Majors
(Tokyo: Institute of Energy Economics, Japan, 2004), 11.

42
. All figures in this paragraph are based on “China Global Investment Tracker Interactive Map, ” Heritage Foundation,
http://www.heritage.org/research/projects/china-global-investment-tracker-interactive-map
.

43
. For example, Bob Weber, “Chinese Could Shift Energy Investments to Forestry, Mining: Ambassador, ”
Canadian Business
, February 11, 2013,
http://www.canadianbusiness.com/business-news/chinese-could-shift-energy-investments-to-forestry-mining-ambassador/
; and “Will China Invest in Canada's Lumber Industry, ” March 4,
http://www.cnfpi.com/en/newsds.asp?NID=2071
.

44
. “China Global Investment Tracker Interactive Map, ” Heritage Foundation.

45
. “Canada's State of Trade: Trade and Investment Update 2012, ” Foreign Affairs and International Trade Canada, last modified April 30, 2013,
http://www.international.gc.ca/economist-economiste/performance/state-point/state_2012_point/2012_6.aspx?lang=eng&view=d#t6-2
.

46
. For 2013, investments are defined as significant if they exceed $344 million in a year for a given investor from a WTO country. There are technicalities, and a lower threshold for non-WTO investors, but these are not relevant to the case of China. Industry Canada, “An Overview of the Investment Canada Act (FAQs), ” March
8, 2013, accessed September 5, 2013,
http://www.ic.gc.ca/eic/site/ica-lic.nsf/eng/h_lk00007.html
.