Foreign Affairs Committee on May 2nd, 2017

[John McCallum]

If you talk too long about what you're going to talk about, you won't have any time left to talk.

[Tom Kmiec, Conservative, Calgary Shepard, AB]

If I can get to the last one, I'll be happy.

In Hong Kong on April 27, nine democracy activists were arrested ahead of the July visit by President Xi Jinping. We've seen what's been going on with the clampdown on the city and the disrespect for the original agreement that was reached when the colony was transferred back to China.

I'd like to get your thoughts and your views on what's going on in Hong Kong. I've heard from a lot of expats in Beijing and Shanghai who travel to Hong Kong quite often. They're saying that the city has been downgraded to a tier-two city. Essentially, the advertising that used to be in English in the city is now being converted and is all in Chinese script. As well, the city is just not as important to the Chinese government anymore because it's become a tier-two city. Also, the vibrant democracy movement is being clamped down on by the government in Beijing. I'd like to get your views—Canada's view—on this.

[John McCallum]

As I said in my opening comments, we certainly have a keen interest in the integrity of Hong Kong's autonomous institutions under the one country, two systems formula. I know there are some stresses and strains on that. We do what we can to support that. We have 300,000 Canadian citizens living in Hong Kong. We have a very active consulate general. We are very active in Hong Kong and we certainly support that system.

At the same time, you say Hong Kong might be a tier-two city. I mentioned earlier a tier-two and one-half city that was 10 million people. There's at least one tier-two city that has a population almost as big as Canada's, 30 million. A two-tier city in China doesn't mean you're doing too badly. I think there might be two tier-one cities according to some classifications: only Shanghai and Beijing.

What I'm trying to say is that Hong Kong does face competition as to which will be the economic driver of China. Hong Kong plays a major role and I'm sure Hong Kong will continue to play a major role, but so does Shanghai. When you have a country of 1.3 billion people, there's room for more than one city to have a major role in the financing and other activities of that country. Certainly for offshore activities and other areas Hong Kong is thriving. Hong Kong does have its challenges. Canada does support the system that the Chinese agreed to, but there are strains on that, I know.

[Tom Kmiec, Conservative, Calgary Shepard, AB]

I want to talk about the potential for a free trade agreement with China. I know the Canadian government is interested. You mentioned a labour chapter as part of a potential agreement. You mentioned that you have Australia envy. I share that. I think Australia has done a great deal of innovative public policy changes that Canada tries to emulate oftentimes. Recently they also scrapped their 457 visa, which allowed foreign workers to gain access, work in Australia and then become permanent residents on a path to citizenship. They scrapped that.

Part of their free trade agreement had provisions that allowed foreign workers to be sent to Australia to work. That caused a lot of tension with Australian workers because people felt they weren't getting the job opportunities they expected. What does Canada expect to see in a labour chapter?

[John McCallum]

I have some experience in issues with temporary foreign workers and immigration from my previous job.

[Tom Kmiec, Conservative, Calgary Shepard, AB]

That's why I ask.

[John McCallum]

No doubt that will be an issue in the free trade negotiations. I have not yet had discussions on that subject.

I remember from my old days about the temporary foreign worker issue that exploded with public reaction some years ago. I remember one of the issues was that you had a mine in British Columbia where Mandarin was a required language. If you didn't speak Mandarin, you need not apply for a job. I remember that was a very explosive issue in Canada. I have that in my head, so when we get to these discussions with representatives of the Chinese government I will be mindful of Canadian concerns, having lived through them myself. We weren't the government then but I was part of it. I remember it.

That is a sensitive issue. It's an issue that, no doubt to some degree, will come up in potential free trade discussions, if we go that route. One has to be aware of sensitivities in that area but it hasn't yet come to pass.

[The Chair, Liberal, Bob Nault]

Colleagues, it's the end of our two hours, plus we have 25 minutes to get to a vote. I think the ambassador understands that, having been here a few years.

First of all, on behalf of the committee, Ambassador, thank you very much for taking us up on our offer. It was very informative. We'd like to do it on a regular basis, so keep it in mind that when you are in Canada we'd very much like to hear updates on where we're going. Probably all of us in the room agree that China is a very important partner and the relationship that's being developed is of great interest to all of us in many different areas.

As a committee we are also very interested in China with regard to the strategy the government will have dealing with Chinese politicians. As you know, Canada has spent a great amount of time sending its political team to the U.S. Around this table we think that would be a good strategy for China, so we are looking at that very thing as a committee, of going to pay you a visit some time in the not-too-distant future.

On behalf of the committee, we very much appreciate your time. Obviously we wish you the best of luck because it's extremely important to Canada.

[John McCallum]

Thank you very much, Mr. Chair.

I would certainly welcome a visit from all of you. I hope you can come to Beijing. As I said, it's my plan to return to Canada every six to eight weeks, so I would be happy to provide reports from time to time if that is your desire.

[The Chair, Liberal, Bob Nault]

Thank you, Ambassador.

Colleagues, that will be the end of today's meeting. It was very impressive. You have 25 minutes, roughly, to get to the vote. Thank you.

The meeting is adjourned.