Canada’s top intelligence agency has issued a stark warning about China’s intentions to exploit the renewable energy sector, leveraging its control over critical minerals used in battery and computer chip production.
The Canadian Security Intelligence Service briefing, obtained through an access to information request, sheds light on China’s strategic maneuvers in the global energy landscape and underscores the challenges posed to Canadian and allied interests.
CSIS highlighted the People’s Republic of China’s dual approach to energy, heavily reliant on fossil fuels yet poised to exploit renewables for strategic advantage.
“The People’s Republic of China heavily relies on fossil fuels and is likely to exploit renewables for strategic purposes,” wrote CSIS.
“While the PRC leads the renewable energy sector, from rare earth reserves to manufacturing solar cells and batteries, most renewables are produced using polluting energy sources and are exported to foreign markets.”
Of particular concern is China’s control over supply chains, with the PRC’s dominance in renewable energy posing a potential threat to other countries, including Canada.
The briefing emphasizes China’s history of weaponizing supply chains, a tactic that could jeopardize Canada’s dependence on PRC’s renewable energy technology.
“The PRC is the world’s largest energy consumer, primarily relying on coal, making it the largest emitter of carbon dioxide. Beijing aims to peak PRC carbon emissions by 2030 and achieve net zero emissions by 2060,” wrote CSIS.
“However, challenges in emissions reduction are greater for China due to its lower income level, necessitating an expedited transition compared to developed countries.”
The briefing also highlights China’s portrayal of itself as a climate leader while engaging in actions more aligned with those of a spoiler, prioritizing carbon energy despite climate commitments. This behaviour poses a global disruption, particularly concerning for Canadian and allied energy transition efforts.
In tandem with these revelations, recent statements from the Chinese Ambassador to Canada, Cong Peiwu, affirm China’s steadfast pursuit of majority stakes in Canadian critical mineral companies.
“Politicizing normal commercial cooperation and using national security as a pretext for political interference is wrong. China has expressed firm opposition to this. We will continue to do business on the basis of mutual respect and mutual benefit,” said Cong.
CSIS warned further China’s focus on dominating the critical mineral market, including lithium, graphite, copper, and rare earth elements abundant in Canada, aligns with its broader economic strategy to gain a competitive advantage in digital technology manufacturing.
In response to China’s aggressive stance, Prime Minister Trudeau has signalled support for a critical mineral divestment strategy to counter China’s push for access to the Canadian market.
