Relations between the U.S. and Canada regarding China haven’t been this low for years. The recent shooting down of a Chinese surveillance balloon has simply made matters worst. We know that the balloon flew over parts of western Canada before moving over American air space. While Chinese authorities argued that this was simply a weather balloon that had gone off course, officials at North American Aerospace Defense Command (NORAD) claimed that it was a spy balloon. In the end, President Biden ordered that the balloon be shot down over the ocean within American controlled waters, allowing the military to retrieve the balloon’s remnants for further study. In protest, Secretary of State Antony Blinken postponed a planned high-stakes weekend diplomatic trip to China. In addition, a number of American Congressional members once again turned their attention to Chinese businesses, such as TikTok and Huawei, which have been operating in the U.S.
With respect to social media platform TikTok, U.S. lawmakers have expressed concerns about TikTok mining users’ private data and passing on the information to the Chinese Communist Party (CCP). China’s Vice Foreign Minister Xie Feng insisted that China would “resolutely safeguard the legitimate rights and interests of Chinese companies.” There is little doubt that Chinese companies are operating under the auspices of the CCP. Whether or not these companies represent a national security risk has yet to be fully determined, despite all kinds of allegations by some American and Canadian authorities.
China is making major inroads into a number of countries as a way to extend its influence around the world. For example, the latest interest by Chinese companies is in Mexico due to the advantages for imports to the U.S. because of the North American trade deal involving the three North American countries. Chinese firms are establishing factories in Mexico that allow them to label their goods “Made in Mexico,” then trucking their products into the U.S. and Canada duty-free. They are currently setting up operations inside the North American trading bloc as a way to supply Americans and Canadians with goods, from electronics to clothing to furniture. This also allows Chinese companies to greatly reduce skyrocketing shipping and transportation costs, while taking advantage of Mexico’s highly skilled workforce, given the presence of its universities that churn out engineering graduates. The Mexican government is openly welcoming billions of dollars worth of Chinese investments as a means to further develop their industrial sites close to the U.S. border and the potential creation of thousands of new jobs.
As a matter of increasing its influence abroad, China has invested in numerous infrastructure investments around the world, notably in Africa, South America and Asia. Such investments often target critical sectors such as those in transportation (high speed rail), energy (oil and gas extraction) and mining (nickel deposits). Many countries and their political elites believe that China is now the relevant superpower and the U.S. is in relative decline, especially after the disastrous foreign policies administered by Donald Trump.
There is little doubt that American and Canadian politicians, particularly those of the right-wing persuasion, will continue to raise security concerns wherever Chinese businesses are active. What is ironic is that American and Canadian companies were quick to invest in manufacturing operations in China, hoping to take advantage of cheaper labour costs and weaker environmental and health and safety regulation. China took full advantage of the resulting opportunities to expand their business and economic interests in North America. At this time, based on speculating about possible security concerns, I question whether we can prevent these business ties? This recent balloon episode may have raised such concerns, but it apparently is nothing new since it is reported that three similar balloons actually flew over the U.S. when President Trump was in office. Strange that no one complained about those incursions at that time?
FROLITICKS 
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