The Metal of Discord Between Canada and China

Canada’s sixteen rare earth minerals prove to be crucial components in the development of high technology. Countries like Germany, Japan, and South Korea, heavily reliant on high technology, are highly concerned about the supplies of these minerals for their technological sectors. Canada is an inexhaustible source of natural resources. The issue now is that China completely controls the production of rare metals like lithium, tantalum, and cesium, and the Western world finds itself heavily dependent on them. There are only three mines globally producing cesium, all controlled by China, but around two-thirds of all deposits of this rare metal are located in Canada, hence the heightened interest. This was commented on by Alex Nestor from the Canadian-Bulgarian Business Network on the show ‘In Development’ with host Veselina Spasova.

“Canada will attempt to compete with China. The country holds the most cesium deposits globally, and it would be illogical not to process them.”

Canada has never had good relations with authoritarian states like Russia and China. There can be no trust between an authoritarian regime and democracy. Both states engage in strong trade; approximately 3% of Canada’s trade is with China, which means steps can be taken to normalize their relations.

Suspicions of Chinese interference in Canada’s internal affairs stem from leaked information within the country’s intelligence community. This information suggests that in the 2019 and 2021 elections, China attempted to influence the vote, preferring the Liberal Party to be in power. This recently prompted the country’s Prime Minister to appoint a special rapporteur and commission to investigate the matter.

The effects following the recent bankruptcy of an American bank are uncertainty and a tremor in the banking system. The Federal Reserve needs to establish a balancing role in bank relations. Over the last year, the Fed increased interest rates over ten times. Since last week, they range between 5% and 5.25%, further unsettling banks, as they are particularly sensitive to changes related to interest rates, noted Nestor.

The measures being taken to calm the financial world at present should handle the pressure. The US Treasury Department recently informed Congress that the country is financially capable until June 1st, and if the budget, including raising the budget ceiling, isn’t addressed, a real problem will exist for the country. One option is to increase the borrowing ceiling and debt, while the other is to reduce spending.

“Canada’s banking system is one of the most stable in the world. All banks are financially stable, with the Royal Bank of Canada even voted as the most stable European bank currently.”

This security in Canadian banks is due to their policies and strict regulations, which are meticulously executed. That’s why even during the 2008 financial crisis, Canada didn’t experience such turmoil.

Watch the entire conversation in the video material on Bloomberg TV Bulgaria.

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