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THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.71, # 1, 2014, pp. 99-119

table. Given China’s extensive FDI background in Africa, it would entirely possible for an

Chinese government official to misread the Canadian psyche.

Chinese FDI

Figure 6: China’s FDI approach used in Africa requires more sophistication in Canada; it is
important to connect to the appropriate level of the hierarchy.

A further social concern is that Chinese SOEs often have a detrimental effect on worker

health and safety. The United Nations Conference on Trade and Development (UNCTAD) notes

that Chinese firms “often undermine hard-won governance standards observed by other

multinational corporations.” Of particular concern is bribery, respect for environmental

standards and most importantly – human health and wellbeing.

Such concerns have come to light in Alberta in the recent past. In 2006 the Sinopec

Shanghai Engineering Company (SSEC) brought a team of 150 workers to the Horizon project

construction site. The result was a tragic outcome with two workers killed and six more injured

in a major collapse. While industrial accidents are dreadful, they are hardly a rare occurrence in

Canada. In Alberta for instance the construction industry has the second highest rate of fatalities

after forestry. Over a ten year period this industry saw 453 people killed on the job, or a rate of

180 fatalities for every million person-years worked. What is perhaps even more troubling is the

response of SSEC to the tragedy in its seemingly callous disregard for the process of correcting

unsafe conditions and policies – and being held accountable to Canadian standards.

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