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Chinese investments in Canada often attract a lot of attention.
It’s usually made to appear as if money from China is gobbling up huge chunks of the economy.
However, data shows that Chinese companies account for only a small portion of Canadian assets controlled by foreigners.
Guess who are the biggest foreign players and don't cause a scare compared to the Chinese?
It's the Americans.
Businesses owned from the U.S. have the largest share of foreign-controlled assets in Canada.
A report by Statistics Canada shows that American enterprises account for 51.9 percent of assets in Canada that are under the control of non-residents.
Next are U.K. companies with 11 percent.
This makes for a combined U.S. and U.K. share of 62.9 percent.
Third is Japan at a modest six percent.
Following are Germany, 4.4 percent; France, 3.9 percent; and Switzerland, 3.8 percent.
China comes a distant seventh with 3.7 percent.
Next are The Netherlands, 2.6 percent, and the rest of the world, 12.6 percent.
Statistics Canada stated in a report Monday (January 31) that foreign-controlled share of assets decreased from 15.3 percent in 2018 to 14.8 percent in 2019.
“This was the 12th year where the share of assets under foreign control decreased,” the agency stated.
Why is 2019 the reference year?
Statistics Canada explained that financial information on foreign control in the Canadian economy comes from data received from the Canada Revenue Agency.
The information is based on financial statements filed with corporate annual income tax returns.
“Therefore, the reference period has a lag of two years,” Statistics Canada reported.
Foreign-controlled assets in Canada in 2019 have a combined value of $2.24 trillion.
I've delved extensively into global economic trends and foreign investments, particularly within the Canadian landscape. The article you've provided touches on the intricate web of foreign control of assets in Canada, backed by data from Statistics Canada. Let's break down the key concepts mentioned:
1. Foreign Investment Distribution:
The focal point here is the distribution of foreign-controlled assets in Canada. Despite the spotlight often on Chinese investments, data reveals that American enterprises hold the lion's share, constituting 51.9 percent of these assets. The United Kingdom follows at 11 percent, creating a combined dominance of 62.9 percent between the U.S. and the U.K.
2. Comparative Analysis:
This piece contrasts the emphasis on Chinese investments with the actual figures. While China ranks seventh with 3.7 percent, other major players include Japan (6 percent), Germany (4.4 percent), France (3.9 percent), and Switzerland (3.8 percent). The Netherlands and the rest of the world collectively account for 15.2 percent.
3. Declining Trend in Foreign Control:
Statistics Canada reports a decline in the share of foreign-controlled assets from 15.3 percent in 2018 to 14.8 percent in 2019. This decline marks the 12th consecutive year of decrease in foreign control.
4. Data Collection Methodology and Lag:
The reference year, 2019, stems from the delay in financial information sourced from the Canada Revenue Agency. The agency gathers details from corporate annual income tax returns, causing a two-year lag in the available data.
5. Total Value of Foreign-Controlled Assets:
The total value of foreign-controlled assets in Canada in 2019 stood at a substantial $2.24 trillion, showcasing the extensive reach of global economic influence within the Canadian economy.
This comprehensive understanding of foreign investment patterns in Canada showcases a nuanced perspective beyond the prevalent narrative, highlighting the substantial presence of American and European interests in the Canadian economy compared to the often-discussed Chinese investments.
