Canada-China Relations Committee on Feb. 12th, 2024

[Marie-France Lalonde, Liberal, Orléans, ON]

Thank you very much.

Maybe I'll leave you with a thought that hopefully you'll be able to express, as we are in the special committee on Canada-China and are studying the Indo-Pacific strategy and how both our nations.... What's your point of view on China's influence in the region? How does that impact some initiatives, or how can we consider this as we go forward?

[Kanji Yamanouchi]

That's a very important question for these times. China is now the second-largest economy—with 1.4 billion people. Its influence is here and there. Every country is working hard to shape its policy towards China.

We see the potential for co-operation and also challenges and concerns. If I may lay it out, we see China's unilateral attempts to change the status quo by force in the East China Sea and South China Sea. We see the series of military activities surrounding our countries. Some of them are together with Russia. Peace and stability across the Taiwan Strait is also very important. We pay a lot of attention to that.

Japan will firmly maintain and assert its position, and it will strongly urge—request—China to act responsibly. At the same time, we continue to engage ourselves in dialogue with China where there are areas of concerns or potential co-operation, like on the environment.

The important thing is the communication. We will make every effort to build a constructive and stable relationship. That is our position. We will always tell friends that this is our position regarding China.

[The Chair, Liberal, Ken Hardie]

Thank you, Mrs. Lalonde.

[Marie-France Lalonde, Liberal, Orléans, ON]

Thank you.

[The Chair, Liberal, Ken Hardie]

We'll now go to Mr. Bergeron for two and a half minutes.

[Stéphane Bergeron, Bloc, Montarville, QC]

Thank you, Mr. Chair.

Mr. Ambassador, I would like to return to the topic of Taiwan. Since it was expelled from the UN in 1971, Taiwan has been engaged in a kind of guerrilla diplomacy with the People's Republic of China, although it is a very unfair fight.

The People's Republic of China has been utilizing its tremendous demographic, economic and military power to undermine the remaining countries that still officially recognize Taiwan, such that fewer and fewer countries recognize it every year. As a result, Taiwan seems to be trapped, clinging stubbornly to the traditional position of seeking diplomatic recognition, which in turn places countries that are friendly to Taiwan, such as Japan, Canada and the United States, in an extremely difficult position.

Should we not try to circumvent this obstacle of diplomatic recognition? I was speaking with you informally before the Kiwa Initiative meeting, in which Canada and France are taking part. Is that not the kind of initiative that we should try to include Taiwan in so as to circumvent this difficulty and pitfall of diplomatic recognition, which leaves Taiwan in a weak position relative to the People's Republic of China?

[Kanji Yamanouchi]

Thank you very much.

For us, Taiwan is an extremely important partner and our dear friend. Also, the peace and stability of the Taiwan Strait is important.

Japan has been working very hard to further deepen co-operation and exchange between Taiwan and Japan based on the basic position that is laid out in our history. Also, we were working for the international fora, like the WHO or the ICAO. Taiwan is a responsible partner for that. However, sometimes it is very difficult to be a full member. We are working to make Taiwan an observer at those international fora. I think it is very important for Canada and Japan to work together to involve and engage with those fora as international partners of Taiwan.

[Stéphane Bergeron, Bloc, Montarville, QC]

I understand that the—

[The Chair, Liberal, Ken Hardie]

Excuse me, Mr. Bergeron. Your time has expired, sir.

[Stéphane Bergeron, Bloc, Montarville, QC]

Time flies when one is in good company.

[The Chair, Liberal, Ken Hardie]

I know, but now it's time for Ms. McPherson for two and a half minutes.

[Heather McPherson, NDP, Edmonton Strathcona, AB]

I have two and a half minutes.

Again, thank you very much, Your Excellency, for being here.

I represent a constituency that has a number of post-secondary institutions in it. You were speaking earlier to Mrs. Lalonde about people-to-people relationships. I wonder if you could talk about the potential between Japan and Canada in terms of international students, research and sharing that research back and forth.

What roles could Canada and Japan have in that? How is the Indo-Pacific strategy helping us with that?

[Kanji Yamanouchi]

People-to-people exchange is a very important pillar of the Indo-Pacific strategy. We do understand that in Canada the higher education institutions are very much respected when it comes to high tech, like artificial intelligence and quantum. More and more Japanese students are paying attention to these higher opportunities, especially postgraduate students.

The Japanese institutions promote those academic exchanges and are working hard to enhance and increase the further exchange between the academia of our two countries, especially with robotics, artificial engineering, artificial intelligence and quantum—the high-tech areas.

[Heather McPherson, NDP, Edmonton Strathcona, AB]

As we try to limit our interactions or perhaps have some controls within our interactions with China and the Chinese government and research there, I think the opportunity for research within post-secondary institutions is quite strong.

Thank you very much for that.

That's it for me, Mr. Chair.

[The Chair, Liberal, Ken Hardie]

Thank you, Ms. McPherson.

We did start a wee bit late, so with the ambassador's indulgence, we'll ask a few more questions.

Are you okay with that?

[Kanji Yamanouchi]

As long as they're soft.

[Voices]

Oh, oh!

[The Chair, Liberal, Ken Hardie]

Thank you.

Just to line this up for everybody, we'll have five minutes for Mr. Chong, five minutes for Mr. Oliphant, and then two and a half and two and half for our friends from the Bloc and the NDP.

Mr. Chong, the next five minutes are yours.

[Michael Chong, Conservative, Wellington—Halton Hills, ON]

Thank you, Mr. Chair.

Thank you, Ambassador. You have indicated that the ties between Canada and Japan are strong and deep. You mentioned the 35-year anniversary of the JET Programme. I'm sure my wife would appreciate it if I thanked your government on her behalf. She was a JET participant in 1997-98. She participated in the program in Japan. She lived in Kyoto, the ancient capital of Japan and taught English there. She has many fond memories of that time and still keeps in touch with acquaintances she made at that time, so thank you for that program.

One of the areas we haven't touched on is Japan's leadership in automobile manufacturing. The largest automobile company in the world is Toyota Motor Corporation. We referenced critical minerals earlier tonight. As you know, most leading OECD economies have a 2035 battery electric vehicle mandate, where all vehicles are to be full battery electric vehicles.

Mr. Toyoda, the president of Toyota Motor Corporation, has indicated that this is not possible, that it's not physically possible to meet those targets. He recently suggested that those targets should be replaced with a more aggressive hybrid vehicle target. We know that Toyota Motor Corporation is the world leader in hybrid technology. In Canada, Toyota builds hybrids in the Cambridge, Ontario, plant. Honda builds vehicles in Alliston, Ontario.

What is your government's position on looking at alternative ways to reduce emissions that would involve stronger hybrid mandates instead of the aggressive battery electric vehicle mandates that most countries have currently agreed to?

[Kanji Yamanouchi]

Thank you very much, Mr. Chong.

I'm so happy to hear that your lovely wife was a JET alumni. Kyoto must have been a beautiful place for her. I'm sure she has fond memories. Thank you very much.

Actually, I have visited the Toyota factory in Cambridge too, and I was amazed. I'm not the best person to talk about the possibility of technological innovations and others. It's an ongoing process. One thing for sure is that Canada, Japan, the United States and other countries have committed to be carbon-neutral by 2050. All the gas emissions, about 25%, are from motor vehicles. Therefore, it is very important to reduce gas emissions from cars.

Some countries have specific targets of 2035 with 100% zero-emission vehicles. It depends on the definition of a zero-emission vehicle. Some definitions include the hybrid, but others do not. It all depends on the technologies and the possibilities for fulfilling that target by 2035. This is an ongoing process.

Going back to the summit in Hiroshima, each country needed to see its own way of achieving that ultimate goal of being carbon-neutral by 2050. Various ways should be admitted. These are technological things. All companies are working so hard to get state-of-the-art technologies to fulfill that goal. I think this is down the road. Each country, each parliament and congress, will decide its standard.

I'm sure that each company is working so hard to outplay other rival companies to achieve this goal.

[Michael Chong, Conservative, Wellington—Halton Hills, ON]

Thank you.

I'll just note, Mr. Chair, that there's been research that indicates that the world needs 300 critical mineral mines and critical mineral processing plants today in order to meet the 2035 targets.

Mr. Toyoda's point was that we have all the critical minerals and mines we need today, if we were to adopt a 100% hybrid target, rather than a battery electric vehicle target. This would more quickly reduce emissions while at the same time not eviscerate our industries to the People's Republic of China, which is dominant in battery electric vehicle production.

I just want to put that on the record, Mr. Chair. Thank you.

[The Chair, Liberal, Ken Hardie]

Thank you, Mr. Chong.

We'll now go to Mr. Oliphant, for five minutes.

[Rob Oliphant, Liberal, Don Valley West, ON]

Thank you, Chair, for this meeting.

Your Excellency, it's wonderful to see you here. Some people have talked about this as a golden age of Canada-Japan relations.

Perhaps it began with the late Prime Minister Abe's, visit. It was really a landmark visit for Canada and Japan to look at the steps leading towards the Indo-Pacific strategy, your own free and open Indo-Pacific strategy, as well as our action plan.

In your time here, we really have taken great steps. Thank you for your leadership, and thank you for the friendship that you have and are fostering between Canada and Japan. It really has been remarkable in your tenure here. We hope for 10 more years—if you could just tell your foreign minister that when you get a chance.

I will follow up a little bit on Mr. Chong's question.

Is Canada still seen as an important, significant and optimistic investment opportunity in the automotive sector for Japan? Is there still a sense of positivity with respect to automobile producers moving to the future?

[Kanji Yamanouchi]

The short answer is yes.

I see many reports about Japanese companies thinking about investing in Canada because of the nature of this country. You have a great trust in the Japanese people, and also a great potential for critical minerals.

This is not just me saying this, but last week Bloomberg published a very interesting article about the ability to make the lithium-ion battery, and that Canada was considered a top country to produce this lithium-ion battery. That says something.

[Rob Oliphant, Liberal, Don Valley West, ON]

That is our hope, for sure. I think a partnership with Japan on all of that supply chain could be quite important.

I'm switching gears quite a bit towards development, humanitarian assistance and crisis work. I have perceived an increase in the interest of Japan in the world, in developing countries in the so-called global south and in partnering with like-minded countries. Am I reading that correctly? Do you see Canada as a partner in working both on emergency and crisis responses—we know you had your own crises in Japan where we've tried to respond—but also in the global south, particularly in Africa or other parts of the world?