Hong Kong Watch statement on the Special Committee on Canada–People’s Republic of China report on the exposure of Canadian investment funds to human rights violations in the PRC
In 2022, the Special Committee on Canada–People’s Republic of China conducted a series of hearings to investigate the exposure of Canadian investment funds to human rights violations in the People’s Republic of China (PRC). On 13 December 2023, the Committee presented an interim report to the House, which reviewed the findings and recommendations and proposed further actions based on reports by Hong Kong Watch.
The research reports published by Hong Kong Watch in June 2022 revealed that some of Canada’s largest pension funds were investing in PRC companies involved in human rights violations, military modernization, and repression in the Xinjiang Uyghur Autonomous Region through active and passive investment. As a result, the Committee summoned pension fund executives and expert witnesses, including former Hong Kong Watch Director of Policy Sam Goodman and Co-founder and Trustee Aileen Calverley, to provide testimony and recommendations on addressing this issue.
Following the publication of Hong Kong Watch’s reports and the Committee hearing, several Canadian pension funds, including CPP Investments, CDPQ (Caisse de dépôt et placement du Québec), British Columbia Investment Management Corp, and Ontario Teachers’ Pension, have ceased, paused, or reduced their investments in the PRC.
While Hong Kong Watch welcomes the report and the withdrawal of Canadian pension funds from the PRC, we believe that the report lacks strong recommendations to effectively address Canadian investment in human rights violations. The report acknowledges the measures recommended by Hong Kong Watch, such as barring investment in companies associated with human rights abuse and incorporating the US’ entities list and sanctions policy. However, the recommendations fall short of calling on governments to prohibit investment and instead focus on studying how to compile and maintain a list of ‘unsuitable’ companies.
Hong Kong Watch suggests that the government of Canada should coordinate and rationalize existing entities lists and sanctions regimes, such as those included in the United States government’s Uyghur Forced Labor Prevention Act (UFLPA) and Executive Order 14032. This would ensure that prohibitions on imports and investment are harmonized and enforced by all relevant parties. In cases where a list of banned entities does not exist, the government should consider adopting and adapting the existing lists from allied countries.
Additionally, financial regulatory frameworks should adhere to the UN Guiding Principles on Business and Human Rights (UNGPs) and impose enhanced transparency and due diligence requirements for investment in PRC companies with a high risk of forced labor violations.
Overall, while the interim report acknowledges the issues raised by Hong Kong Watch, there is a need for stronger recommendations and actions to address Canadian investment in human rights violations in the PRC.
The full Committee report can be read here.
Hong Kong Watch’s reports can be read here: part 1 and part 2.
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香港監察就加中關係特別委員會報告《加拿大投資基金涉嫌投資中國侵犯人權行為的問題》的聲明
2022年，加拿大眾議院加中關係特別委員會（Special Committee on the Canada–People’s Republic of China Relationship）舉行一連串聽證會，調查加拿大投資基金涉嫌投資中國侵犯人權行為的問題。2023年12月13日，委員會向眾議院提交中期報告。有關報告以香港監察的研究報告為基礎，審議聽證會的調查結果和建議，並提出進一步行動。
香港監察在2022年6月發表研究報告，揭示若干加拿大大型退休基金透過直接及間接投資，投資牽涉新疆維吾爾自治區侵犯人權行為、軍事現代化和鎮壓的中國公司。因此，委員會傳召退休基金高層和香港監察前政策及倡議總監Sam Goodman和共同創辦人兼信託人Aileen Calverley等專家證人，就應對問題作證並提出建議。
香港監察發表研究報告及委員會聽證會結束後，CPP Investments、Caisse de dépôt et placement du Québec、British Columbia Investment Management Corporation和Ontario Teachers’ Pension等多隻加拿大退休基金已停止、暫停或減少對華投資。
香港監察歡迎委員會的報告，也樂見加拿大退休基金撤出中國。然而，我們認為有關報告缺乏有效解決加拿大基金涉嫌投資侵犯人權行為問題的有力建議。報告認可了香港監察建議的措施，例如禁止投資涉及侵犯人權的公司，以及引入美國的實體清單和制裁政策。不過，報告所列建議並沒呼籲政府禁止投資，而是集中研究編製及維持「不合適」公司名單的方法。
香港監察建議，加拿大政府應協調並合理地改動現行實體清單和制裁制度，例如美國政府《防止強迫維吾爾人勞動法》（Uyghur Forced Labor Prevention Act）和第14032號行政命令所列的清單和制度。這能確保相關各方協調並執行進口和投資禁令。如現時未有禁止實體清單，加拿大政府應考慮採用並調整盟國現有清單。
此外，相關金融監管框架應遵守《聯合國工商企業與人權指導原則》（United Nations Guiding Principles on Business and Human Rights），並就投資強迫勞動違法風險高的中國公司，施加更嚴格的透明度及盡職調查要求。
整體而言，委員會的中期報告承認香港監察提出的議題屬實，惟仍需採取更有力的建議和行動來解決加拿大基金涉嫌投資中國侵犯人權行為的問題。
請在此處閱覽委員會報告全文。
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info@hongkongwatch.org