Explainer
China Merchants Group Limited, the parent company of the Chinese state-owned firm contracted by BC Ferries to build new vessels, has faced international scrutiny over its global activities, including allegations of debt-trap diplomacy through China’s Belt and Road Initiative and efforts aimed at furthering Beijing’s goals abroad.
BC Ferries announced last month it had selected China Merchants Industry Weihai Shipyard to build four new vessels, following a “rigorous global procurement process” in which no Canadian firms participated. The choice is estimated to save about $1.2 billion compared to building the ships in Europe.
BC Ferries’ deal with the Chinese company has drawn criticism from federal and provincial politicians, who cite lost opportunities for Canada’s domestic shipbuilding industry, ongoing tariff tensions with China, and potential national security risks associated with building the vessels in China….